August closes at a cost three times more expensive than last year, with an average that exceeds 100 euros MW / h
The Third Vice President of the Government and Minister for the Ecological Transition, Teresa Ribera, attends Congress this afternoon to give explanations about the continuous and soaring rise in the price of electricity in the last two months, which this August has pulverized all records, which will translate into the most expensive bill ever for consumers.
The appearance will be before the Commission of Ecological Transition and Demographic Challenge from 4 in the afternoon. The vice president goes to the Lower House at her own request, although in any case she would have been obliged to appear, since all the parliamentary groups demanded her extraordinary appearance in the Permanent Delegation for this month of August, outside of the session.
The unstoppable upward spiral in the price of electricity has led the political debate to focus on how to lower this cost. The Government has even opened the door to create a public energy company that will take over the management of the hydroelectric plants as their operating concessions end by the electricity companies, as has long been requested by its partner in the Executive United We Can, but it is a possibility in the medium or long term.
The purple formation has also made a final proposal to the Government to lower the electricity bill that would limit the price of nuclear and hydroelectric energy by decree law.
For now, the only measures adopted by the Executive have been to lower the VAT on electricity from 21% to 10% until the end of this year for all consumers with contracted power up to 10 kilowatts (kW), and provided that the average monthly price of the wholesale electricity market is above 45 euros / MWh, and the suspension of the 7% tax on electricity generation for three months.
Light at highs
Compared with August of last year, the average price of electricity has tripled its values from about 35 euros in August 2020 to 103 euros per megawatt hour (MW / h) of this last month, according to the figures of the Operator of the Iberian Energy Market (OMIE). This Monday it will pulverize all the records previously seen and will shoot up to 124.45 euros per megawatt (MWh), which is two euros more than the last historical maximum reached last Thursday, which led the series until now.
This rise represents a rebound of almost 25% to the already high price of just a week ago and is multiplied by three compared to the average price of electricity on a comparable Monday last year, when it reached 42.01 euros. The maximum price of this Monday will be beaten from 9 to 10 in the morning, with a peak of 132.92 euros / MWh, while the minimum will be recorded from 4 to 5 in the morning, with 112.31 euros / MWh, according to OMIE data.