Monday, July 4

The price of electricity makes December the most expensive month in history




The average price of electricity on the wholesale market in December it was 239.16 euros per megawatt (MWh), which represents an increase of 470% over the same month last year (41.96 euros). What is the most expensive month in history closes a year that also reaches all-time highs. The annual average is 111.4 euros per MWh, compared to 34 euros in 2020. That is, 227.6% more.

And we compare the average price of 2021 with that of 2018 (57.28 euros), it is an increase of 94.5%, which makes impossible the promise of the President of the Government, Pedro Sánchez, that domestic consumers are going to pay the same this year as in 2018 in the bills of the light, despite the tax cut applied in the last quarter of the year.

The price of electricity in the wholesale market represents approximately 60.5% of the total amount of the invoice of a domestic consumer. 15% are the charges (costs of the premiums of the renewable, the annual payments of the tariff deficit and the extra cost of the generation in the islands), 14.1% are the tolls (regulated costs of transport and distribution), the 9.5% tax and 0.9% meter rent.

In 2021 prices started to skyrocket in June, when it reached an average of 83.29 euros per MWh, then the most expensive month since there were records. In July it reached 92.41 euros on average, in August at 105.94, in September at 156.14, in October at 200, in November at 193.43 and in December at 239.16 euros.

On December 23, it registered the highest average price (383.67 euros), with a maximum price that for the first time exceeded the barrier of 400 euros per MWh (409 euros). The lowest average price occurred on January 31: 1.42 euros per MWh.

These increases have been due to the spectacular rise in the price of gas in the international and CO2 markets. Gas started the year at 21.25 euros per MWh, fell to 15.27 euros in February and reached 183 euros on the 22nd of this month. It is currently at 90 euros, which represents an annual increase of 323%.

For its part, the price of CO2 has also increased by 137% in the year, which started at 33.5 euros per ton and today costs 79.35 euros. On the 8th it reached 88.7 euros.

The rising cost of gas and CO2 has pushed up the prices of the wholesale market, since gas combined cycle plants produce the most expensive electricity and, in addition, they have fixed the prices of all the technologies on a large number of days during the year.

And what has been wind – one of the cheapest – which has generated the most electricity in 2021, 23.3% of the total, snatching the first place from nuclear, leader in the last decade. This year it ranks second, with 20.6%, followed by combined cycles (17.6%), hydro (11.3%), cogeneration (10%) and solar photovoltaic (8.1%) ), according to provisional data from REE.

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