Sat. Mar 28th, 2020

The price of electricity goes down in October, but it's still more expensive than a year ago

The price of electricity goes down in October, but it's still more expensive than a year ago


MadridUpdated:

The average price of electricity in the wholesale market in October it was 65 euros per megawatt hour (MWh), according to its operator OMIE, which represents a decrease of 8.5% compared to September (71.27 euros).

But nevertheless, the average price of October is 14% more expensive than that registered in the same month last year. This is a trend that is repeated in the last six months. In fact, the 65 euros are the third most expensive monthly price since 2008, only exceeded by 71.49 euros in January 2017 and the aforementioned 71.27 euros in September 2018.

The average price of this year (56.35 euros) is also higher than in 2017 (50.95 euros until October).

In this wholesale market the electricity offers are matched with the offer. First, enter the cheapest energies, such as hydro, nuclear and wind. Then, when the demand increases, the coal and gas plants, which are more expensive, have to enter. In addition, it must be emphasized that the latest technologies that enter and that are the most expensive, are the ones that mark the prices of all the energies.

This decrease in the average price of electricity in the wholesale market will have a lower impact on the electricity tariff and the receipt, since 60% of it are taxes and fixed costs.

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