The price of electricity will break its historical record today for a Sunday driven by the heat wave


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The price of electricity in the wholesale market will stand today, July 11, at 90.77 euros per megawatt / hour (MWh), which represents a historical record for a Sunday, driven by the heat wave that affects much of the peninsula.

The Maximum price will stand today Sunday at 103.63 euros / MWh and the minimum at 67.98 euros / MWh, according to data from the Iberian Electricity Market Operator (OMIE) collected by Europa Press.

Today’s average price therefore exceeds the mark reached in June, in which a record monthly average of 83.30 euros was registered and is only nine euros below the absolute annual record of 99.8 euros the MWh reached last July 2.

Industry sources consulted by Europa Press attribute this maximum to a combination of factors, such as the heat wave that extends this weekend over a large part of the peninsula, the costs of CO2 emission rights -which have exceeded 50 euros per ton-, and the rise in the price of gas.

These factors outweigh the fact that it is a Sunday, a day when industrial activity is significantly reduced.

These high prices penalize industry and individuals, especially to the 10.5 million under the voluntary price for small consumers (PVPC), who see how the price containment measures adopted by the Government are not yet causing the desired effect.

Consumers who are in the free market – some 17 million – are exempt, since they have a price agreed with their company.

It should be remembered that in July the measures to temporarily suspend the 7% tax on electricity generation for the third quarter of this year. To this should be added the VAT reduction from 21% to 10% applied to contain the cost of the electricity bill.

The price of energy has a close weight in the electricity bill of around 24%, while around 50-55% corresponds to tolls (the cost of transmission and distribution networks) and charges (the associated costs to the promotion of renewables, to extrapeninsular ones and to the annual payments of the tariff deficit), while a little more than 21% corresponds to taxes.

The high price of electricity is recorded after the new schedule came into effect in June for hourly periods. Thus, the prices of tolls and charges are different between the time periods, both for power and energy.

High prices will continue these months

The fourth vice president of the Government and minister for the Ecological Transition and the Demographic Challenge, Teresa Ribera, warned a few days ago that the high electricity prices registered in recent weeks, as well as the impact that it has produced on both domestic and industrial consumers , will remain for the next few months.

The minister stated that her main objective is to alleviate the negative effect that these prices are causing on consumers, although she has admitted that this situation will continue to persist over time.

In his opinion, the solution is to ensure that 100% of the electrical system is capable of being supplied without depending on international fuels and the costs of carbon dioxide (CO2) emission.

For the moment, Ribera has valued the efforts of this Government in trying to achieve that objective, after, in the last three years, the generation of electricity within this perimeter has gone from 25% to between 10% and 12 % current.

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