The average daily price of electricity in the wholesale market will rise again this Wednesday in Spain to 189.9 euros per megawatt hour (MWh), which represents a new historical record after the one reached 10 days ago of 188.18 euros.
The Government orders the demolition of 12 of the 21 hydroelectric concessions expired since January 2020
This new increase in electricity is produced in the midst of a rise in the price of all raw materials linked to energy around the world, such as gas, oil and coal, which causes having to resort to the cheapest but most polluting options , which simultaneously triggers CO2 rights, also to record highs.
Compared to a week ago, when the price of electricity in the Spanish wholesale market took a breather for the first time in the entire month of September, which has been chaining one record after another, the rise in the price is 8.2% . Comparing it with a year ago (48.35 euros), the rise is 292%.
The highest price this Wednesday will be between 8:00 p.m. and 9:00 p.m., when it will reach 208.47 euros / MWh, while the lowest will be recorded between 3:00 a.m. and 4:00 a.m., when it will trade at 167.01 euros.
In this context, the price of electricity in Spain has already set its highest historical prices in both July and August, and September will exceed both records, to a higher average of 154 euros in the ninth month of the year.
However, the Government has already approved a shock plan that will temporarily contain these increases, by lowering taxes and reducing some extraordinary income from electricity companies, so the impact on consumers’ bill will be less.
Even so, as it is a global problem, the inflationary trend in all types of energy could be transferred to the industry, which could cause pressures in its activity or the transfer of prices to consumers.
The reduction of the VAT to 10%, the suspension of the 7% tax on electricity generation, the discount of the electricity tax at 0.5% or the expected contribution of 2,600 million euros by the electricity companies from the so-called ‘benefits fallen from the sky’ are some of the measures undertaken by the Spanish Government.
In any case, the price of the quotation that is published every day, as the Executive has already warned, will continue at high levels and rising, at least until March of next year, at which time these measures are expected to decline. Meanwhile, the bill should continue to fall in price despite the rise in the wholesale market.