July electricity bills make it the second most expensive month in Spanish history

In July 2021, the price of a kilowatt hour (kWh) of electricity stood at an average of 13.65 cents in off-peak hours, 18.13 cents in flat hours, and 29.14 cents in peak hours, with 15.62 per cent indirect taxes included.

This July, the average price has been 35.14 cents in off-peak hours, 33.75 in flat hours, and 38.34 in peak hours, including 5.525 per cent of indirect taxes that are applied to invoices issued since July 1.

Calculations by the organisation showed that the arithmetic average between the three sections this month was 35.74 cents, 76.1 per cent more than the 20.30 cents of a year ago.

Taking the consumption of the average user in each section as a reference, the average was 35.71 cents, 85.0 per cent higher than the 19.30 cents of July 2021.

Data published by the National Commission of Markets and Competition (CNMC), – taking the traditional average user profile, without time discrimination, as a reference – showed the percentages of consumption in the three time slots of the new billing system. They revealed consumption of 45 per cent of electricity in off-peak hours, 29 per cent in peak hours, and 26 per cent in flat hours.

AEGE data show that the average daily electricity market price for the month of July was €142.66/MWh, 54.4 per cent higher than the average price for July last year. This price was 54.7 per cent lower than that of Germany, and 64.4 per cent lower than that of France. Compared to June 2022, the July average was 15.9 per cent lower.

Facua considered that the marginal auction model is “the origin of speculation and the disproportionate prices paid by consumers”. It has asked the Spanish Government to propose “a radical change in the system”, to the European Commission, “given that it is absurd that consumers have to pay the cheapest energy at the price of the most expensive”.

The organization also demanded that the Government protects families by declaring them all, except for the highest incomes, vulnerable consumers. That way, they can take advantage of a special social bonus, which would allow them to pay rates with great discounts compared to what the market dictates, as reported by 20minutos.es.

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