The price of electricity starts the week down after falling to 150.26 euros per megawatt hour

The price of electricity starts the week down after falling to 150.26 euros per megawatt hour

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The price of electricity starts the week down after falling to 150.26 euros per megawatt hour

The third vice president and minister for the Ecological Transition, Teresa Ribera, on Friday in Toledo.Isabel Infantes / Europa Press

The average daily price of electricity in the wholesale market will be 150.26 euros per megawatt hour (MWh) this Tuesday, which represents a decrease of six euros (4.1% less) compared to the 156.75 euros MWh marked this Monday, according to data from designated electricity market operator (OMIE). The highest price of this Tuesday will occur between nine and ten in the morning and the same time slot at night, when it will reach 190 euros / MWh, while the lowest will be recorded between five hours and six hours of this morning, section in which it will drop to 120.64 euros megawatt hour, which is when the offers are married with cheaper energy. The price of electricity has fallen by almost 30 euros from the maximum reached last Thursday when the price of electricity reached 188.18 euros.

The fluctuations in the daily price affect consumers covered by the regulated tariff (PVPC), about 10.5 million, while those who are in the free market (about 17 million) and who negotiate the price with the marketers are exempt. However, consumers in this segment will also see the impact of the increase on their contracts later, usually referenced to a series of clauses.

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In addition, the increase in prices has raised the weighting of energy consumption in the electricity bill and already represents about 51% of the amount, compared to the scarce third that it represented before the energy crisis. The rest of the receipt is made up of taxes (VAT and special electricity tax) and charges (extra-peninsular costs) and tolls.

The price of electricity continues at high levels after a line of consecutive increases since last June, only sporadically interrupted on very few occasions. After setting historical records in July and August, the month of September follows the same trend and, except for an exceptional downward change in the days that remain, there will be another high mark.

The increase is caused by the price of gas in international markets, the impact of which is expected at least until next March. Gas is the one used in combined cycle plants, which are the ones that set the wholesale market price as they are the last to enter the bidding. To mitigate the high prices of electricity, the Government last week approved a shock plan with measures that reduce taxes and charges that are put on the electricity bill.

The objective, committed by the President of the Government, Pedro Sánchez, is that the consumer pays the same amount that he paid in 2018 on his bill. The reduction of VAT to 10%, the suspension of the 7% tax on electricity generation, the discount of the electricity tax to 0.5% or the return of “extraordinary benefits” worth 2,600 million euros by the electricity obtained as a result of selling cheaper energy at the price of gas, are part of the measures.