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Electricity price in Spain keeps soaring to new record levels

The wholesale price is four times the cost of a year ago.
The wholesale price is four times the cost of a year ago. / SUR
  • Experts consider that the price hikes will continue in the coming months but PM Pedro Sánchez has ruled out creating a public energy company

The rising cost of electricity in Spain seems to have no upward limit. This Monday, 6 September, the average daily price of electricity in the wholesale market will rise again to 132.65 euros per megawatt hour (MWh), making it the most expensive Monday in history.

And worst of all is that experts are forecasting that this bullish rally will continue in the coming months.

This Monday, the wholesale price of electricity will be almost four euros more than Sunday and eight euros more than the price a week ago, when it stood at 124.45 euros MWh. In addition, it is four times the cost of a year ago, when a daily price was 31.67 euros per MWh.

The weekend saw a slight respite after new records were set between Monday and Thursday, according to data from the Iberian Energy Market Operator (OMIE).

However, the Spanish PM, Pedro Sánchez, in an interview with the newspaper El País, has promised that by the end of 2021 the electricity bill will be similar to the one that consumers paid in 2018, for which, he said, they will take ‘measures’.

However, he ruled out creating a public energy company as proposed by his coalition partner, Unidas Podemos.

It should be noted, however, that 2018 was one of the years with the most expensive electricity price in history, with an average bill of 67.21 euros per month, according to consumer group data. That is only around one euro lower than the average bill so far in 2021, which stands at 68.46 euros.