Electricity falls 2% this Sunday but marks its second highest price of the year

© Provided by Agencia EFE

Madrid, Feb 27 (EFE).- The price of electricity in the wholesale market has fallen this Sunday by just under 2% to reach 256.84 euros per megawatt hour (MWh), its second highest price of the year, in full Russian military offensive on Ukraine.

Despite this decrease, which ends four consecutive days on the rise, the price of electricity will be 58% higher than that of the previous Sunday, and multiplies by nine the amount that it marked just one year ago (29.24 euros).

By time slots, the maximum price for this Sunday, the day on which economic activity decreases and energy demand is lower, will be registered between 8:00 p.m. and 10:00 p.m., with 350 euros/MWh, while the minimum will be of 209.14 euros/MWh between 15:00 and 17:00 in the morning.

In the first 27 days of February, the price of electricity stands at an average of 197.35 euros/MWh, 18% cheaper than the value of December, the most expensive month in history with 239.22 euros/MWh , but 77% higher than the average price of 2021 (111.4 euros/MWh), the highest since there are records.

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

To cushion the impact that the rise in electricity prices is having on consumers, the Government has extended the tax reduction on taxes levied on electricity bills during the first four months.

The escalation of prices that affects a large part of Europe is due, among other factors, to the higher cost of gas in international markets, which is used in combined cycle plants and sets the market price in most hours, and the increase in the value of carbon dioxide (CO2) emission rights.

The military conflict between the two ex-Soviet countries could cause an even higher rise in energy prices in the coming weeks, especially in the case of gas, due to the risk that Russian imports to Europe will be slowed down by the sanctions imposed by the European Union.

(c) EFE Agency

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