Sunday, October 2

The light falls this Monday from 100 euros per MWh and marks its lowest price in almost two months



The average price of electricity will give families and companies a truce on Monday. The amount paid in the wholesale market continues its downward trend and will be tomorrow, December 27 below 100 euros per megawatt hour (MWh) for the first time since last November 1. After marking maximum levels at the start of the week, electricity has already fallen for four days and will cost an average of 96.08 euros per MWh tomorrow, according to data published today by the Iberian Energy Market Operator (OMIE).

The price contrast will once again be very marked depending on the different time bands. The maximum price will take place this Monday between 6:00 p.m. and 7:00 p.m., when it will reach 207.10 euros / MWh.

By cons, the minimum price will plummet to 2.67 euros / MWh between 2 and 6 in the morning.

The collapse in the cost of electricity occurs after the historical maximum, located at 383.67 euros / MWh, was recorded in Spain on December 23. Since then, the price has fallen by 75% in just four days that coincide with the Christmas holidays and that have an impact on the demand being much lower due to the lack of activity of companies, industries and large consumers.

The causes of the reduction in the price of electricity, in the middle of Christmas and despite the cold, are explained by a lower demand on holidays, but also due to the collapse of the cost of gas. Based on data from the Iberian Gas Market (Mibgas), the cost of this raw material today stands at 67.38 euros per MWh, well below the maximums set in recent days. The price of gas has fallen following the shipment by the United States of several shipments of liquefied natural gas. These shipments will help balance cuts from Russia, which remains Europe’s main gas supplier.

In the rest of Europe the light will continue at very high levels. The truth is that in the United Kingdom the megawatt hour will cost an average of 217 euros tomorrow; while in Germany it will drop to an average of 148.83 euros. For its part, in France it will cost about 161.08 euros; in Italy, 243.63 euros, and in Portugal -which shares a market with our country- about 96 euros will be paid.

Prices started to decline noticeably from Christmas Day and just two days after hitting a new high. In addition, on December 16, the light surpassed the level of 300 euros for the first time and since then it has not dropped from there. The month of December was marked by great volatility, with declines in some days to around 100 euros, with record prices and now, with a downward trend that had not been seen for almost two months.

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