The wholesale price of electricity continues to go through the roof and without reaching a ceiling in the heat of the heat wave. The The price of electricity will stand at 115.83 euros per megawatt hour tomorrow Thursday, thus setting a record for the fourth consecutive day. The highs in prices have followed one after another since the beginning of the week, according to the figures published daily on the platform of the market operator OMIE. The price per megawatt hour (MWh) reached a historical maximum of 113.99 euros on average today, after the peak marked yesterday Tuesday of 111.88 euros per megawatt hour. The first maximum of the week took place last Monday, when the price of electricity shot up to 106.74 euros per MWh.
With a runaway energy price, the limit will be above 100 euros per MWh throughout the entire day tomorrow -also at dawn-, and It will mark its daily maximum in the section that goes from 8:00 p.m. to 9:00 p.m., at which time it will shoot up to 130 euros per MWh. The minimum will be registered between 4 and 5, at a cost of 105.51 euros.
If today’s price is compared with that marked on the second Wednesday of August 2020, which stood at 40.52 euros / MWh, we see that today it has practically tripled. The price of electricity continues like this in the second week of August with the same lack of control as throughout the whole of July, a month that closed with an average of 92.42 euros / MWh, which translated into the highest threshold of the history.
Washing is twice as expensive
This increase in energy prices in the wholesale market or ‘pool’ has a direct effect on the consumer’s pocket. Running the washing machine for one hour today will mean a cost of 50 cents of euros during ‘peak’ hours; 29 cents per hour in ‘flat’ hours and 22 cents in the lowest price bracket, known as ‘valley’. These numbers, compiled by the comparator Selectra, are double those recorded exactly one year ago when plugging in the washing machine cost 23 cents per hour in the most expensive section and only about eight cents in the cheapest section.
Another essential electrical device on heat days is the air conditioning. Refreshing the house with this appliance will mean an energy cost of 37 cents per hour in the ‘peak’ section, 22 cents in the ‘flat’ schedule and 16 cents in the ‘valley’, according to Selectra calculations. If we compare these prices with those of August 11, 2020, we see that 12 months ago the prices of turning on the air were considerably lower: 17 cents per hour in the ‘peak’ section and six cents in the ‘valley’.
It should be remembered that the price of electricity has been recorded since last June in three periods, with different costs and that go from 8:00 a.m. to 10:00 a.m. (flat), from 2:00 p.m. to 6:00 p.m. (flat), from 10:00 p.m. to 00:00 (flat); from 00.00 to 08.00 (valley) and the rest of the hours (peak). Weekends and national holidays are also valley throughout the day. The ‘valley’ period is 95% cheaper than the ‘peak’ and, this, 25% more expensive than the ‘flat’, according to the CNMC.
Impact on receipt
From Facua they have already warned that the price escalation in the wholesale market will be transferred to the receipt. According to the latest calculations made by the consumer association, with the rates for the first 21 days of July, the average user will pay 22.20 euros more than in July 2020, when the bill stood at 62.67 euros. For their part, experts from the OCU consumer association denounce that families have experienced a high cost of electricity supply that has led them to pay from January to July 2021 an invoice of 470 euros compared to 381.28 euros last year. That is, the receipt is 23% more expensive until last July and it meant having already paid 89 euros more than in 2020.
These price increases only affect the almost 11 million households that have signed a regulated PVPC tariff. However, industry sources ask to take into account that there are other rates indexed to the wholesale market, although they fall within the so-called free market. On the other hand, from the OCU they warn that some marketers are taking advantage of this price increase in the so-called ‘pool’ to transfer the costs to the offers for new customers. In some of these rates, despite the fact that they are launched with a fixed price, the small print includes the possibility of revising the prices when the company deems it appropriate and unilaterally with the stipulated notice. In these cases, the consumer would not be guaranteed the confidence of having an assured fixed price that is maintained despite the fluctuations in the wholesale price, the consumer association warns.
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