It is almost 25 euros more expensive than this Saturday but it is still the second lowest price in February
The average price of electricity in the wholesale market will become 18% more expensive this Sunday, standing above 160 euros per megawatt hour (MWh), the second lowest level so far in February. Specifically, the average price of the ‘pool’ on Sunday will be 162.64 euros/MWh, almost 25 euros more than on Saturday, the day on which the lowest record for the month of February was observed, with a price of 137, 76 euros/MWh, according to data published by the Iberian Energy Market Operator (OMIE).
By time slots, the maximum price of electricity for this Sunday will be between 9:00 p.m. and 10:00 p.m., with 225 euros/MWh, while the minimum, of 125.22 euros/MWh, will be recorded between 5:00 p.m.
The prices of the ‘pool’ have a direct impact on the regulated rate -the so-called PVPC-, to which almost 11 million consumers in the country are covered, and serve as a reference for the other 17 million who have contracted their supply in the free market .
The rise in electricity prices since the middle of last year is explained, mainly, by the high prices of gas in the markets and carbon dioxide (CO2) emission rights, at all-time highs. Compared to just a year ago, the price in the ‘pool’ for this Sunday will be 7,326% higher than the 2.19 euros/MWh of February 20, 2021.
2021, the most expensive year
Electricity closed 2021 as the most expensive year in the historical series, with an average price of 111.93 euros/MWh due to the upward spiral registered in the pool in the second half.
The average daily market price last January was 201.72 euros/MWh, 235.3% higher than the average price for the same month last year and 15.7% lower than December 2021.
The Government has extended until April 30 the reduction of taxes included in the electricity bill paid by all consumers in order to mitigate the negative effect that the rise in the price of electricity is having on citizens.
Specifically, the reductions from 21% to 10% of VAT and the special electricity tax from 5.11% to 0.5%, the legal minimum, have been extended until April 30. However, the suspension of the 7% generation tax paid by companies will only be maintained, for now, until March 31.