The wholesale price of electricity soars this Tuesday to 203.6 euros per MWh, the second most expensive day in history

The average daily price of electricity in the wholesale market will rise by 9.2% this Tuesday, to 203.68 euros per megawatt hour (MWh), which is the second highest record in the historical series, only behind the 216 euros to which it arrived last Friday.

After concluding September with a record average price, only after July and August, October has already registered the two highest prices seen so far in just five days, and the trend continues to rise with this new record, which will also mean Tuesday more expensive in history.

The successive increases that are being experienced in recent months in the price of electricity throughout the European market has led the Eurogroup, which brings together the ministers of Economy and Finance of the eurozone, to include the concern in its meeting this Monday around the consequences it is already causing in the economy.

This Tuesday, the price will rise 11.5% compared to a week ago, when the price of electricity in the Spanish wholesale market was at 182.71 euros / MWh. Compared to a year ago, the price of electricity increased by 341%, according to data from the designated electricity market operator (OMIE) collected by Europa Press.

The highest price this Tuesday will be between 8:00 p.m. and 9:00 p.m., when it will reach 256.47 euros / MWh, while the lowest will be recorded between 4:00 a.m. and 5:00 a.m., when it will trade at 165 euros / MWh.

This situation occurs in the midst of a rise in the price of all energy-related raw materials around the world, such as gas, oil and coal, which simultaneously triggers CO2 rights, also at record highs.

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 it will not be reflected in consumer bills.

Even so, as it is a global problem, the inflationary trend in all types of energy could be transferred to the industry, potentially causing pressure on its activity or the transfer of prices to consumers.

The reduction of 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.


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