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Keys to understanding why the price of electricity is at highs

2021-06-18T05:57:42.590Z

Today it will reach its highest level since Filomena The average price of electricity in the wholesale market will reach its highest level since the Filomena storm occurred this Tuesday, exceeding the level of 90 euros per megawatt hour (MWh) and also coinciding with the recent entry into force of the new invoice. Specifically, the electricity pool will register for today an average price of 90.95 euros per MWh, a level only surpassed so far this y



The average price of electricity in the wholesale market will reach its highest level since the Filomena storm occurred this Tuesday, exceeding the level of 90 euros per megawatt hour (MWh) and also coinciding with the recent entry into force of the new invoice.

Specifically, the

electricity pool will

register for today an average price of 90.95 euros per MWh, a level only surpassed so far this year by the almost 95 euros per MWh that it registered on January 8, according to OMIE data.

This data thus pulverizes what was until now the second most expensive daily price registered in 2021, the 88.95 euros per MWh on May 28.

In addition, the market operator expects that this Tuesday will register peaks of 100 euros per MWh between seven and eight in the afternoon, while tomorrow it will reach 105.51 euros per MWh from 20 to 21 hours.

In this context, tomorrow the third most expensive daily price in history will be recorded, standing at 94.63 euros per MWh.

How do CO2 emission rights influence?

The evolution of CO2 prices has changed significantly since 2005. In recent weeks there has been an increase in the price of emission rights on the European market, where they are reaching values ​​of more than 50 euros per ton, which means a rise of 150% compared to the value of a year ago. Thus, the increase in the price of electricity so far this month is mainly based on the increase in gas prices and CO2 emission rights.

The latest GasIndustrial market price bulletin, corresponding to the period from May 29 to June 11, highlights that the price of gas continues to rise, with the average

spot

prices

of

European

hubs

climbing 1.9% this fortnight.

up to € 25.96 / MWh, € 0.49 / MWh more than the previous fortnight.

How is the electricity bill structured?

The price of energy has a weight in the bill close to 24%, while around 50-55% corresponds to tolls [the cost of transmission and distribution networks] and charges [the costs associated with the promotion of renewable, extra-peninsular and annual payments of the tariff deficit] and just over 21% to taxes.

Meanwhile, consumers who are in the free market are exempt from fluctuations in the daily price, since they have a price agreed with their company.

More information

  • How to save with the new electricity bill

  • Ribera studies a "small rate or guarantee" before "the flood" of renewable projects

  • The relief of the electricity tariff endorses 8,000 million to energy companies

How does the Government intend to lower the price of the receipt?

The Government estimates that between the National Fund for the Sustainability of the Electricity System (FNSSE) and the lower remuneration for the generation of nuclear and hydraulic energy, domestic consumers could benefit from a reduction in the final cost of the electricity bill of up to one fifteen%. Specifically, the measures launched by the Executive will make the energy companies face the payment of about 8,000 million euros. The plan to reduce the so-called

windfall profits

(

windfall profits

, in English) of nuclear and hydraulic companies will mean a cut of 1,000 million euros in the remuneration that companies receive, which will also have to bear the costs associated with the specific remuneration scheme of the companies. renewables, cogeneration and waste (Recore), between 6,500 and 7,000 million.

What is the consumer enduring?

The electricity bill of an average user has shot up 45.4% in the first half of June, compared to the same period last year, according to data from Facua-Consumidores en Acción.

The association's estimates on the evolution of the regulated tariff (PVPC) indicate that, if the prices applied from June 1 to 15 are extrapolated to a full month, the average user bill would suffer a year-on-year increase of 27.53 euros and it would stand at 88.11 euros (taxes included).

In this way, June points to the second most expensive bill in history, with only 88.66 euros ahead of the first quarter of 2012.

The average user used by Facua in its analyzes has a contracted power of 4.4 kilowatts (kW) and a consumption of 366 kilowatt hours (kWh) per month.

Source: elparis

All news articles on 2021-06-18

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