The electricity price in the wholesale market will be tomorrow January 2 at 136.97 euros per megawatt hour (MWh), which represents an increase of 12% compared to the one set on the first day of 2022. According to data from the Iberian Electricity Market Operator (OMIE), the maximum price tomorrow will be recorded between 9:00 p.m. and 9:00 p.m. 22:00, when it will be 209.1 euros / MWh, while the minimum will be 103.7 euros / MWh between 11:00 and 13:00. With this rise, the price of electricity almost triples the amount registered just a year ago, when it was paid at 48.72 euros / MWh. However, the price for tomorrow will not exceed the barrier of 200 euros / MWh for the third consecutive day, a value that was reached in almost 70% of the days of October, in 45% of the days of November and the 80% of those of December. In addition, it will be 43% below the average for December, which with 239.17 euros / MWh has become the most expensive month in history.
Electricity closed 2021 as the most expensive year in the historical series, with an average price of 111.4 euros / MWh, more than triple that of last year, the cheapest in the last 17 years thanks to the fall in demand and of the prices caused by the pandemic. To cushion the impact that the rising cost of electricity is having on consumers, the Government extended the tax reduction on taxes on electricity bills (VAT, electricity tax and electricity generation tax) during the first four months of this year.
The moderation in electricity prices has become a basic element in controlling inflation, which has surpassed levels well above those in recent years. It is in the focus of economists, but especially of the Administration since a sustained rise in the price of energy will end up having a structural impact on the prices of all products, making a temporary increase a structural increase.
The prices registered in the wholesale market have a direct impact on the regulated tariff or PVPC, to which almost 11 million consumers in Spain are welcomed, and serves as a reference for the other 17 million who contract their supply in the free market.
Behind the price increase are the high prices of gas in international markets and of carbon dioxide (CO2) emission rights, which during 2021 have been setting record highs month after month.
As for the rest of European countries, in the United Kingdom the megawatt hour will be paid tomorrow at an average of 59.30 pounds (about 71 euros), while in Germany it will do so at 47.35 euros; in France, at 49.12 euros; in Italy, at 167.21 euros; and in Portugal, which shares the market with Spain, although sometimes prices are decoupled due to differences in production, at 137.75 euros.