The wholesale price of electricity for tomorrow is again close to 100 euros per megawatt-hour (MWh). The auction of the Iberian operator for this Thursday has yielded a result of 98.83 euros MWh. The maximum foreseen for the day will be 107.25 euros at 10 p.m., and the minimum of 87 MWh at 4 p.m. In this way, the monthly price is heading towards the highest average in history. The Organization of Consumers and Users (OCU) warns that the average daily amount has not fallen at any time in July from 74 euros (the highest was reached on the 21st with 106.57 euros) and indicates that the month will close with an average price of 93.2 euros MWh. This increase means paying for energy 12% more than last month, whose average was 82.93 euros, and almost tripled the price of July 2020, which was 34.64 euros.
The price of energy accounts for around 24% of the electricity bill. To this must be added around 55% of the tolls (cost of the transmission and distribution networks) and charges (costs associated with the promotion of renewables, extra-peninsular ones and the annuities of the tariff deficit) and taxes. The OCU maintains that the strong increase in energy will raise the average bill of households with a PVPC rate (the regulated rate, for the initials of voluntary price for small consumers) to 72.50 euros per month, based on the assumption of a home with 4.6 kW of contracted power and a monthly consumption of 292 kWh. This amount represents an increase of 5.4% compared to June (68.80 euros) and 17% compared to July 2020 (55.70 euros). Without the reduction of VAT from 21% to 10%, which temporarily applies until the end of the year, the invoice would have risen to 79.80 euros.
In the opinion of the association for the defense of consumers, the increase in prices in electricity supply is leading to accumulate from January to July a bill of 470 euros compared to 381.28 euros that an average household accumulated in the same period of the year. last year. In other words, in the first seven months of the year the disbursement has increased by 89 euros, 23% more.
Impact on households
The impact is direct for the households that have contracted the regulated tariff (10.5 million), but also for those of the free market that are indexed to the wholesale price of the rest of the households (17 million). Many of these offers, although they are offered with a fixed price, contemplate the possibility of updating prices when the company deems it appropriate with the mandatory notice. In other words, the consumer is not guaranteed that he will pay less, no matter how much the electricity companies now offer the change from the regulated rate to the free rate, taking advantage of the confusion that occurs with the rise in prices. The OCU criticizes that some companies take advantage of the high prices in the wholesale market to propose as a solution the elimination of the PVPC tariff, which in the opinion of the organization “will in no way influence the reduction of those wholesale prices.”
For all these reasons, OCU once again asks the Government and the National Commission of Markets and Competition (CNMC) to accelerate the taking of effective measures that reduce the price of electricity to alleviate the situation of households, especially the most vulnerable . Among the measures requested, the permanent reduction of VAT and the reform of the electricity price setting system stands out.
The trigger for these high prices lies in the price of gas on the international market (it continues to set prices above 36 euros) and carbon dioxide emission rights (above 50 euros throughout the month), which they affect all European countries. The OCU, however, denounces that “the ultimate responsible is the opportunistic system of pricing that facilitates that technologies such as hydraulics that generate electricity with low costs, systematically take advantage of the high costs of their competitors to fix disproportionately high prices ”.