A massive 28% increase in the price of electric in Spain

The price of electricity in Spain and Portugal on Friday, April 29

The price of electricity in Spain and Portugal on Friday, April 29. Image: pexels

The increase in price in electric has dominated British press for months now. Yet, it is not a British problem, other countries are suffering the same issues, yet the populations have chosen to not make their feelings so public. For those of our readers that do not watch the Spanish news, you might not realise that from tomorrow, there will be a hike in the price of electric in Spain.

The average price of electric in the wholesale market (pool) has been set for November 8 at 167.67 Euros per megawatt-hour (MW/h), which represents an increase of almost 28% with respect to the price set for Sunday, November 7, thus breaking three consecutive days of falls. In addition, the price for tomorrow is 84% higher than the previous Monday, and almost quadruples the price set by the pool on the second Monday of November last year (45.62 Euros).

Despite this rise, the price of electric is still below the 200 Euro MW/h barrier, a value that was exceeded on almost 70% of the days in October and which has not yet been exceeded so far in November. Thus, the average price of electricity on the wholesale market during the first eight days of November stood at 148.91 Euros MW/h, more than 50 Euros below the average for October and almost eight Euros less than the average price for September.

According to data from the Iberian Electricity Market Operator (OMIE), the maximum price on November 8 will be between 21:00 and 22:00, when it will be 203 Euros MW/h, while the minimum will be between 5:00 and 6:00 (139.36 Euros).

The prices registered in the wholesale market have a direct impact on the regulated tariff or PVPC, which almost 11 million consumers in Spain are covered by, and serves as a reference for the other 17 million who contract their supply in the free market.

Behind the price increases are the high gas prices on international markets and carbon dioxide emission rights, which have set record highs month after month in 2021.

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