The average electricity price in the wholesale market will drop by 10.1% on Thursday compared to this Thursday, remaining below 200 euros per megawatt hour (MWh), adding the third consecutive day of decline.
According to data published by the Iberian Energy Market Operator (OMIE) collected by Europa Press, the average pool price for today’s Good Friday holiday will be €198.47/MWh, 22.29 € cheaper than yesterday’s 220.76 Euro/MWh. .
Like this, The maximum electricity price for this Friday will be between 21:00 and 22:00.con 237.29 euro/MWh, y The minimum value of 151.11 euro/MWh will be posted between 15:00 and 16:00.
Compared to just one year ago, this Thursday’s pool price will be 191.05% higher than on April 15, 2021 at 68.19 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.
PRECAUTIONS WHEN THE PLUG IS CHEAP
On 29 March, the Government national plan to deal with the effects war in ukraine This includes, among other measures, the extension of the tax cut on taxes on the electricity bill until 30 June and the extension of the electricity social bond to reach 1.9 million beneficiary households.
In addition, an early and extraordinary update of the regulated fee regime for renewable energy, cogeneration and waste (Recore) was adopted, with a 1,800 million Euro cut in electricity bill fees.
Another measure adopted by the Executive Board was the extension of the discount in gas until 30 June in order to reduce the extraordinary profits in the electricity market, extending the scope of application to cover energy with futures and at a fixed price from the entry of the contract. the norm is if the price in question is higher than 67 Euro/MWh.
Likewise, the governments of Spain and Portugal submitted a preliminary proposal to the European Commission to set a gas reference price of 30 Euros per MWh to reduce the electricity price.
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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 in March was around 283.30 Euro/MWh, and with 239 Euro/MWh until then, it was 55 Euro above the average of December 2021, the most expensive month in history.
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.