The average price of electricity in the wholesale market will reach 106.27 euros per megawatt hour (MWh) this Tuesday, the second most expensive in history, after becoming more than 3% more expensive compared to Monday and staying at 30 cents of the record of 106.57 euros / MWh on July 21, according to OMIE data.
Endesa and Iberdrola ask to reform the regulated electricity tariff in the face of price escalation
The price of electricity thus continues the upward trend in July, which closed with an average price of 92.41 euros MWh. With no signs of decreases in the remainder of the year, last month it shot the average price of 2021 at the highest level in history. August doesn’t point much better. For this Monday, the average price of the daily wholesale market auction is 103.07 euros / MWh, the fourth highest in OMIE’s records.
The upward spiral of the pool is motivated by the high prices of emission rights, which are around 54 euros per ton, when at the beginning of the year they were around 33 euros, and the rise in natural gas, which is now rebounding to almost 41 , 3 euros per MWh, according to Mibgas data.
The price of energy has a close weight in the bill of around 24%. Around 50-55% corresponds to tolls -the cost of the transmission and distribution networks- and charges -the costs associated with the promotion of renewables, extra-peninsular ones and the annual payments of the tariff deficit- and the rest taxes.
The fluctuations in the daily price directly affect consumers covered by the regulated tariff (PVPC), just over 10 million, while those in the free market -about 17 million- are exempt, since they have an agreed price with your company. In recent days, Endesa to Iberdrola They have called for a reform of the regulated tariff (the least profitable for companies), so as not to leave the users covered by it exposed to the ups and downs of the wholesale market, to which it is directly indexed.
Facua asks for measures
In July, and according to Facua’s estimates, the receipt has become more expensive on average by 36.2% in July compared to the same month last year, standing at 85.34 euros, the third most expensive in history. This consumer association demands that the Government change the rules of the auction by which prices are set every day, taking nuclear and hydroelectric technologies out of the so-called pool.
Facua also asks the Executive to maintain the VAT at 10% “permanently”, measures against “fraudulent offers from electricity companies” and a “new model” for discounts on the social bond, the reform of which the Government has been working on for months. ..
According to Facua’s estimates, the reduction in VAT to 10% until December while the average price per megawatt hour is above 45 euros dampens the rise by 8.54 euros. If 21% were still applied, the receipt would have broken all records in July, reaching 93.88 euros.
After the tax cut approved urgently by the Government at the end of June, July has been the third most expensive receipt in history for the average user. To date, the five highest bills have been 88.66 euros for the first quarter of 2012, 87.81 euros for January 2017, 85.34 for this July, 83.55 euros for September 2018 and the 82.13 euros for May 2021, according to Facua.
So far this year, the average user bill has been 80.48 euros in January (year-on-year increase of 18.5%), 62.08 euros in February (year-on-year decrease of 3.8%), 70.90 euros in March (+ 18%), 81.55 euros in April (+ 46.4%), 82.13 euros in May (45.4%), 81.27 euros in June (34.2%) and 85 , 34 euros in July (36.2%).