January 19, 2021

The price of electricity in the wholesale market rises another 6% and has risen for three days



The average price of a megawatt hour (MWh) in the wholesale market for this Wednesday becomes more expensive by another 6.7% and has been on the rise for three days, standing at 89.94 euros per MWh, one of the highest in the historical series and the second most expensive so far in January, according to provisional data just published by OMIE.

In the midst of the cold wave, after the historic snowfall last weekend, in the middle of the pandemic and in a context of low wind energy production, high demand and high gas prices and emission rights, the price for this Wednesday, with a peak of 112.84 euros / MWh in the most expensive hour (9:00 p.m.), is among the ten most expensive of the last decade, far from it of the 94.99 euros per MWh that it registered last Friday.

This price spike, which according to the Ministry for the Ecological Transition is “temporary” and is due to the “perfect storm” that the market is experiencing, will be reflected in the January bill of users receiving the voluntary price for small consumers. (PVPC).

This is the semi-regulated rate that, as just confirmed by the National Commission of Markets and Competition (CNMC), is cheapest for domestic consumersDespite this, it has been in decline for years in favor of the so-called “offers” of the free market, in which these fluctuations are not immediately reflected in the invoice.

The PVPC collects immediately (every hour) in the energy component of the consumer’s bill (which accounts for around 35% of the final bill) the variations in the hourly market price known as the pool. In 2020, this reference collapsed due to the pandemic and marked the lowest annual average price in recent years after the collapse in electricity demand. But 2021 has started with spectacular climbs.

Despite the increases these days, this Wednesday, the Organization of Consumers and Users (OCU) has stressed that “the PVPC continues to be among the best rates on the market” and has advised “not to change the rate.” The OCU warns consumers “about misleading offers in line with scaremongering about rising energy prices that can actually be very expensive.”

This organization, which believes that “the exceptional rise in the price of electricity during the storm once again calls into question the marginal price setting system”, “once again asks the Government to review the system for setting the price of electricity. electricity to avoid skyrocketing prices at peak demand ”.

For its part, the consumer organization Facua estimates that the average user’s electricity bill would amount to 86.52 euros if the average price per kilowatt hour (kWh) for the first 12 days of the year were maintained, 26.7% more than in the same period of 2020. According to Facua, the average price of kWh in the final bill so far this month has reached 18.39 cents (indirect taxes included), which represents an interannual increase of 37.0 %. On the same dates in January 2020, its average amount was 13.42 cents.

Facua regrets that the fourth vice president and minister for the Ecological Transition, Teresa Ribera, “has tried to trivialize what is happening in the wholesale electricity market” after stating last weekend that “the bill can go up a few euros at most “.

“The minister’s words denote little sensitivity to families that do not make ends meet and that in the midst of the cold wave are dispensing with the use of electric heating since they do not know how many euros the January receipt is going to increase,” he warned in a statement the Secretary General of Facua, Rubén Sánchez.

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