Monday, September 27

The price of electricity will fall by 4% this Saturday, to 92.02 euros / MWh

The price of electricity has reached records this week.

The price of electricity has reached records this week.

The average price of light in the wholesale market this Saturday will fall by 4% compared to 95.89 euros per megawatt hour (MWh) marked this Friday, thus registering its third consecutive day down.

Specific, the ‘pool’ marks for this Saturday an average price of 92.02 euros / MWh, thus moving away from the maximums that it has been touching throughout the week, and that led him to record a historical record of 106.57 euros per MWh on Wednesday.

Throughout Saturday the price of electricity will mark a maximum of 106.23 euros /MWh, between 11:00 p.m. and 12:00 p.m., while the minimum for the day will be 73.49 euros / MWh, from 5:00 p.m. to 6:00 p.m., according to OMIE data collected by Europa Press.

With prices in any case very high for these dates compared to other years, the light gives a new respite in a month of July marked especially by high prices.

Anyway, This reduction in the price of electricity is usually common on weekends, in which demand falls – this Saturday 448 gigawatt hours (GWh) are expected – significantly compared to the rest of the week.

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

The fluctuations in the daily price affect consumers covered by the regulated tariff (PVPC), just over 10 million, while those in the free market are exempt -about 17 million-, since they have an agreed price with your company.

According to industry experts told Europa Press, 88% of electricity consumption in Spain is not exposed to the volatility of the price of the ‘spot’ market, as they have contracts with fixed prices, thus being exposed to clients under the PVPC.

VAT drop

On June 24, the Government gave the green light to a Royal Decree-Law by urgency to reduce the taxes that are applied to the supply of electricity and, with it, the electricity bill of homes, the self-employed, SMEs and the group of companies, which entail the reduction of the VAT on electricity from 21% to 10% until the end of this year and the suspension of the 7% tax on electricity generation for three months, which was approved this Thursday by the Congress.

In the specific case of VAT, a 10% reduction is applied until the end of the year for all consumers with contracted power up to 10 kilowatts (kW), provided that the average monthly price of the wholesale electricity market is above 45 euros per megawatt hour (MWh).

Regarding the suspension of 7% of the tax on the value of electricity production, which already in 2018 was decided to temporarily suspend for six months to contain another upward wave in the price of electricity, will be in force during the third quarter of this year.

The bill is 35% more expensive

Despite these measures, the electricity bill in July pointed to an increase of 35%, with respect to the same month last year, according to data from Facua-Consumidores en Acción.

Thus, the July receipt will be the third most expensive receipt historically for the average user. To date, the five highest bills have been 88.66 euros for the first quarter of 2012, 87.81 euros for January 2017, 83.55 euros for September 2018, and 82.13 euros for May 2021 and the 81.55 euros of February 2021.

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