The wholesale price of electricity will hit the threshold of 100 euros megawatt / hour (MWh) this Friday, having reached an average of 99.8 euros, which means the highest level in history, according to data from the Operator of the Iberian Electricity Market (Omie). The maximum price will be 110 euros and the minimum, 82.57, will be above the 94.99 euros / MWh that it reached on January 8, during the storm. Filomena. The highest daily historical average price was registered on January 11, 2002, with 103.76 euros, according to Efe.
This data exceeds the marks reached during the month of June, which had the highest monthly average in history with 83.30 euros. The increase in the price of electricity is mainly based on the increase in the prices of CO₂ and gas rights, which this Thursday rose 3.5%. CO₂ duties continue to increase after having exceeded 50 euros per tonne.
The price of energy has a close weight in the bill of around 24%, while around 50% corresponds to tolls (cost of transmission and distribution networks) and charges (costs associated with the promotion of renewables, to the extra-peninsular and the annuities of the tariff deficit) and slightly more than 26% to taxes. It affects consumers covered by the voluntary price for small consumers (PVPC), about 10.5 million, while the 17 million consumers who are in the free market are exempt, since they have a price agreed with their company.
Superior to France and Germany
The Association of Companies with High Energy Consumption (AEGE) states that this represents an increase of 172.1% compared to June last year and 24.1% compared to May and is 12.5% higher than that of Germany and 13.3% that of France. According to AEGE, the estimated average price of the Spanish electricity market is 74.67 euros per MWh, 119% higher than that of 2020.
Last week, the Government approved the application of the VAT reduction from 21% to 10% that will temporarily take place until the end of the year, as long as wholesale prices are not less than 45 euros per MWh. The association estimates that if this reduction had not been applied, the invoice with VAT of 21% would rise to 76.3 euros and would have been “without a doubt the most expensive invoice in history. The bill that an average household supports is 22% more expensive than last year, with about 72.4 euros; “That is to say, practically the equivalent of 40 days of electricity consumption” with last year’s prices.
The Executive also approved the temporary abolition of the electricity generation tax of 7% during the third quarter. In June, the new electricity bill with three sections of hourly discrimination also came into effect, which causes the prices of tolls and charges to be different between periods, both for power and energy.