Electricity prices in Spain to rise by around 15% this Monday

According to data from the Iberian Electricity Market Operator (OMIE), the maximum price tomorrow will be registered between 7pm and 8pm, when it will reach €285.68/MWh. The minimum will be €209.55/MWh, between 4am and 5am.

Compared to one year ago, today’s price is almost quadruple, when even at the tail-end of storm Filomena, electricity was still only €64.51/MWh. January’s current average stands at €190.30/MWh, which is 20 per cent lower than December, which was €239.22/MWh.
Electricity prices in 2021 finally averaged out at €111.40/MWh, more than triple the previous year, with 2020 being the cheapest in the last 17 years, thanks to the fall in demand, and lower prices caused by the pandemic.

To cushion the impact that the rise in electricity prices is having on consumers, the Government has extended the tax reduction on taxes levied on the electricity bill (VAT, electricity tax, and electricity generation tax) during the first quarter of this year.

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 connected, and serve as a reference for the other 17 million who contract their supply in the free market.

Behind the increase in prices are the high prices of gas in international markets, and of carbon dioxide (CO2) emission rights, which during 2021 marked historical maximums month after month.

As for the rest of the European countries, in the United Kingdom the megawatt-hour today, Monday 17, will be an average of £290.33 (about €348), while in Germany it will be €129.31; in France €261.13 euros; in Italy €244.86 euros; and in Portugal, at the same price as Spain, by sharing the market, as reported by laopiniondemalaga.es.

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