The record price is blamed on the international price of gas. SUR

The price of electricity in Spain continues to spiral: jumping another 9% in a day

The price per megawatt hour in the wholesale market this Thursday will be 268 per cent higher than that of the same day last year

SUR / AGENCIES

Tuesday, 5 October 2021 | Updated 07/10/2021 08:18h.

The cost of electricity in the wholesale market in Spain breaks another record this Thursday (16 September) as it skyrockets to an average of 188.18 euros per megawatt hour (MWh), representing a 9 per cent rise in just 24 hours.

It sets a new record for the second consecutive day, exceeding the 172 euros recorded on Wednesday, according to data from the electricity market operator (OMIE).

The highest price will be between 9pm and 10pm, when it will reach 198.85 euros / MWh, while the lowest will be registered during various time slots of the day (from 3am to 6am and from 4pm to 6pm), when it will drop to 180 euros.

The price per megawatt hour this Thursday will be 268 per cent higher than that of the same day last year, when it registered a price of 51.05 euros / MWh, and 33 per cent more expensive than Thursday of last week, 9 September, when it reached 141.71 euros / MWh.

After breaking historical records in both July and August, September is already heading the same way.

This upward spiral in the price of electricity is due to the international price of gas - used in thermal power plants - which, after experiencing a strong mismatch between supply and demand in recent months, has rocketed.

Spain’s Government has already approved a ‘shock’ plan so that this lack of control in the wholesale prices is not transferred to the bills that consumers receive, with the aim that this year, average bills should not exceed the amounts paid in 2018.

The reduction of IVA sales tax to 10 per cent, the suspension of the 7 per cent tax on electricity generation, and the reduction of the electricity tax to 0.5 per cent are some of the measures undertaken.

However, there are forecasts that the wholesale prices will continue to rise, at least until March of next year, at which time these measures are expected to be removed.