The price of electricity shoots up 82% again this Monday

The price of electricity shoots up 82% again this Monday

Jan 09, 2022 at 13:55

CET


EP

The average price of electricity in the wholesale market will rise again this Monday, specific, 82.2% compared to this Sunday, thus again exceeding 200 euros per megawatt hour.

Specifically, the pool will register for this Monday a average price of 217.26 euros / MWh, when this Sunday the price was 119.24 euros / MWh, according to provisional data published by the Operator of the Iberian Energy Market (OMIE) collected by EP.

By time slots, the Maximum price of light for this January 10 will be given between 7:00 p.m. and 8:00 p.m., with 294.98 euros / MWh, while the minimum, of 158.7 euros / MWh, will be recorded between 2.00 am and 3.00 am.

Compared to a year ago, the pool price for this Monday will be 227.8% more expensive than the price registered on January 10, 2021, of only 66.27 euros / MWh, also coinciding with the storm Filomena.

Pool prices have a direct effect on the regulated rate –the so-called PVPC–, which is covered by almost 11 million consumers in the country, and serves as a reference for the other 17 million that have contracted their supply in the free market. The increase in price in recent months in the electricity market is mainly explained by the high gas prices in the markets and carbon dioxide emission rights (CO2), at all-time highs this year.

239 euros / MWH on average in December

The month of December closed with an average monthly price in the electricity wholesale market of 239.1 euros, the highest in history after exceeding the 200 euros / MWh last October by more than 39 euros.

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The Government has extended until April 30 the reduction of taxes included in the electricity bill paid by all consumers in order to alleviate the negative effect that the rise in the price of electricity is causing on citizens. Specifically, the reductions from 21 percent to 10 percent of VAT and the special electricity tax from 5.11 percent to 0.5 percent, the legal minimum, have been extended until April 30. However, the suspension of the 7 percent generation tax paid by companies will only be maintained, for now, until March 31.