The average electricity price in the wholesale market will hit its lowest level since February 19 this Friday, recording the third consecutive decline, down 27.97% compared to this Thursday.
Specifically, the average price of the ‘pool’ for this Friday will be 154.7 euros, which is around 60 euros cheaper than the other market. yesterday 214.79 euro/MWhAccording to data published by the Iberian Energy Market Operator (OMIE) collected by Europa Press.
Maximum electricity price for this Friday 10:00 and 23:00to be recorded with 252.08 euro/MWh, but between the minimums 16:00 and 18:00from 7 euro/MWh.
In addition to these two hours, there will be cheap prices, especially in the ‘pool’ between the two hours this Friday. Between 15:00 and 16:00 and between 18:00 and 19:00 at 20 Euro/MWh.
Compared to just one year ago, this Friday’s pool price will be 154.7% higher than on April 8, 2021 at 69.78 Euro/MWh.
‘Pool’ prices have a direct impact on the regulated rate — the so-called PVPC — at which approximately 11 million households are covered in the country and serve as a benchmark for the other 17 million contracted. their supply in the free market.
In fact, the National Markets and Competition Commission (CNMC) confirmed that in 2021, around 1.25 million people switched from PVPC to a free market rate at a fixed price, within the framework of the energy’s upward spiral.
On 29 March, the Government approved a national plan to deal with the effects of the war in Ukraine, which included, among other measures, the extension of the tax relief on taxes on electricity bills until next 30 March. extension of the electricity social coupon to reach 1.9 million beneficiary households.
30 EURO GAS CAP
The governments of Spain and Portugal submitted a preliminary proposal to the European Commission to set a gas reference price of 30 euros per megawatt to lower the electricity price.
Teresa Ribera, Third Vice-President and Minister of Ecological Transition, made it clear that this is a joint proposal formulated by both governments and subject to negotiation with European authorities.
Ribera predicted that if the offer were accepted, the electricity price could be capped “within three or four weeks”, and for that “we have to be patient” because it “has to accept it” within that time, he said. good” and “the technical concerns of good functioning that may exist are well reflected”.
If the proposal continues, it will have repercussions on pool prices due to its impact on the daily sales offers of gas-fired combined cycle power plants in the wholesale market, among other things.
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STABILITY SINCE STABILITY
On February 24, when the Russian invasion of Ukraine began, the wholesale market price was 205.6 euro/MWh, and since then there has been a daily rise in price, reaching its peak on March 8, when the price was at an absolute level. It broke a record with 544.98 euro/MWh.
However, since 12 March, the wholesale price has been hovering around 250 euro/Mwh, but continued to decline in the last five days and fell below 230 euros.
MARCH WILL BE THE MOST EXPENSIVE MONTH IN HISTORY
On February 24, when the Russian invasion of Ukraine began, the wholesale market price was 205.6 euro/MWh, and since then there has been a daily rise in price, reaching its peak on March 8, when the price was at an absolute level. It broke a record with 544.98 euro/MWh.
In this context, the average price of the wholesale market so far in March is 294 Euro/MWh, with 239 Euro/MWh, the most expensive month in history so far, about 55 Euros more than the December 2021 average.
Wholesalers have direct influence on the regulated tariff, or PVPC, which covers approximately 11 million consumers in Spain, and acts as a reference for the other 17 million contracting their supplies in the open market.
The military conflict between Ukraine and Russia could push energy prices higher in the coming weeks, especially when it comes to gas, as Russia’s imports to Europe risk slowing due to European Union sanctions.
In order to soften the impact of the increase in electricity prices on consumers, the Government extended the tax cut on taxes on electricity bills until 30 June.
The rise in prices affecting a large part of Europe is due, among other factors, to the higher cost in international markets and the rise in value of the gas used in combined cycle power plants, which determines the market price in most hours. carbon dioxide (CO2) emission rights.
To soften the impact of the rise in electricity prices on consumers, the Government extended the tax cut on taxes on electricity bills for the first four months.
The rise in prices affecting a large part of Europe is due, among other factors, to the higher cost in international markets and the rise in value of the gas used in combined cycle power plants, which determines the market price in most hours. carbon dioxide (CO2) emission rights.
The military conflict between the two former Soviet countries could push energy prices higher in the coming weeks, especially when it comes to gas, as Russia’s imports to Europe risk being slowed by Russia’s sanctions. European union.
2021 became the most expensive year of electricity
The light closed 2021 with: most expensive year historical seriesDue to the upward spiral recorded in the ‘pool’ in the second half, it was realized at an average price of 111.93 Euro/MWh.
this electricity price The average price of the daily market last January was 201.72 euros/MWh, 235.3 percent higher than the average price of the same month last year and 15.7% lower than in December 2021.
The government extended the reduction of taxes included in the tariff until April 30. electricity bill all consumers to pay to mitigate the negative impact of rising electricity prices on citizens.
In particular, the reduction of VAT from 21% to 10% and special electricity tax from the legal minimum of 5.11 to 0.5% has been extended until 30 April. However, the suspension of the 7% production tax paid by companies will only last until March 31st for now.