In Spain, the price of electricity soars with the cold snap

January 2021 could well be one of the months when electricity will have been the most expensive in Spain. This increase is partly explained by an increase in demand linked to storm Filomena, explains the general daily The world.

After the cold snap, the price of electricity soared. “January 2021 should go down in history as one of the months when the price of electricity was the highest in Spain”, reports the newspaper The world, Wednesday January 13.

As the country wears off the damage from Storm Filomena, the cost per megawatt hour (MWH) – which appears on electricity bills – averages 72.21 euros. “We have to go back twelve years, in September 2008, to find a month when the wholesale price of electricity was higher”, notes the generalist daily.

In Spain, the consumer has the possibility of choosing his supplier. The tariff can be fixed – known and determined in advance – or variable – which is the case for most individuals, that is to say it is calculated from the cost of electricity production in the country. Therefore, it depends on supply and demand and its price varies every day.

This increase in the electricity tariff thus appears to be “Very bad news for 14 million individuals in Spain, whose bills are indexed at 35% to market prices, and who will therefore be hit hard by these variations”, developed The world. It is also a blow to companies, “As they began to recover from the first impact of the coronavirus.

Wind turbines are idling

Spain’s Minister of Ecological Transition, Teresa Ribera, hopes the cold snap will abate, which would reduce demand. It also expects weather conditions to revive electricity production. Currently, wind turbines, for example, only operate at 25% of their capacity due to the lack of wind, while they represent nearly 20% of global electricity production.

“What if the wind doesn’t come back?” wonders The world, a daily classified on the right.

In this case, gas and coal, whose prices soar on international markets, will continue to reign in the ‘pool‘electric and will be traded at very high prices. The pressure on the government will increase even further, and it is very likely that it will take regulatory action to lower the bill.

Source

Founded in 1989, “Le Monde” has always claimed the model of American investigative journalism, although it sometimes tends to favor sensationalism to the detriment of serious news. The world acquired his

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