Thursday, September 29

The price of electricity gives a break on Christmas Eve and drops by 19%, to 311 euros / MWh

The average price of electricity on the wholesale market will drop 19% this Friday, Christmas Eve, with respect to the price of Thursday, although will keep at 311.02 euros the megawatt hour (MWh), its sixth highest record in history.

This is the first truce that Luz grants throughout the week, after chaining several consecutive days of increases, which brought the price even above 380 euros, as the absolute record of 383.67 euros this Thursday.

Compared to the same Friday last week, the price of electricity remains the same, although compared to the same Christmas Eve last year its increase amounts to 679%In other words, it is now almost eight times more expensive than a year ago.

Last Thursday the light surpassed the level of 300 euros for the first time and since then it has not gone down from there – in fact it has been getting closer to 400 euros each time – which anticipates that December will be the month more expensive in history so far, without relaxing prices even on the weekend, when demand is lower.

The maximum price of electricity for this Friday It will be given between 10 a.m. and 11 a.m., with 373.34 euros / MWh, While the minimum price will be 258.50 euros between 04.00 and 05.00 hours, according to the data published by the Iberian Energy Market Operator (OMIE) and collected by Europa Press.

The ‘pool’ prices have a direct impact on the regulated tariff -the so-called PVPC-, to which almost 11 million consumers in the country are welcomed, and serves as a reference for the other 17 million that have their supply contracted in the free market.

The rise in prices in the electricity market in recent months is mainly explained by high gas prices in the markets and carbon dioxide (CO2) emission rights, at record highs this year.

December exceeds 260 euros / MWh on average

December began as a month marked by great volatility, with falls in the average of some days to around 100 euros / MWh and with certain rises that far exceeded the level of 200 euros / MWh and, since December 16 , 300 euros / MWh.

The rising cost of electricity has run amok and the average monthly price already exceeds 260 euros, that is, about 60 euros more than last October, the month with the most expensive average to date.

Extension of tax rebates

Related news

On Tuesday, the Government extended until April 30 the reduction of taxes included in the electricity bill paid by all consumers, in order to alleviate the negative effect that the rise in the price of electricity is causing on citizens .

Specifically, the reductions from 21% to 10% of VAT and the special electricity tax from 5.11% to 0.5%, the legal minimum, were extended until April 30. However, the suspension of the 7% generation tax paid by companies will only be maintained, for now, until March 31.

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