The fourth vice president of the Government and minister for the Ecological Transition and the Demographic Challenge, Teresa Ribera, has assured that there is no need to be scared by the rise in the price of electricity in the wholesale market because “Very little will be noticed” the monthly electricity bill of families.
The average daily price of electricity in the wholesale market soared last Thursday amid the cold wave until 94.99 euros / megawatt hour (MWh), the second highest in history.
The minister explained this Saturday, in statements to Efe, that this does not mean that the electricity bill will rise to the same extent, because the price of energy in the market is one of its variables and it represents only 35% of it.
In addition, it will affect the hours and days in which this increase has occurred, but not on the monthly bill because it is a temporary episode that, as we return to normal weather conditions, prices will return to their usual standards.
“Do not panic, it is not that linear growth with which it can sometimes give us the impression that we are facing, “he insisted.
According to the minister, there has been a set of conditions that “They put us in a kind of perfect storm.”
We are in a few days when photovoltaics in winter are less efficient and produce less, there is no wind, so wind power cannot cover a good part of the demand that it is covering and this means that, in the system, whoever has determining the price for the entire wholesale market be it natural gas, which is currently experiencing a historical record in demand and prices in international markets.
Added to this is a record in the price of a ton of CO2, so “little renewable, high demand due to cold and high gas and CO2 markets they cause us to have a very important price increase, “he summarized.
Uploads in all countries
Ribera has indicated that “It is not something exclusive to Spain”, since this same effect is taking place in all the countries around us.
In fact, the absolute record is being produced in the United Kingdom, where there were hours in which the price of 750 euros MWh was reached, which is “one thing absolutely out of the ordinary, we have no equivalent background”, has added.
“It is true that, sometimes, we have the impression that, if there were another type of generation, prices would go down. There are those who demand public generation companies “, has aimed.
However, EDF in France or Enel in Italy are public companies and the behavior of prices in both countries “It has been exactly the same as in Spain”, because the rules on how the price should work in a European electricity market are European, he has qualified.
So, in his opinion, “there is no margin to imagine that being public allows selling at low cost. something that is not allowed by the European framework “.
“What we do know is that to the extent that renewables, efficiency and electrification they allow us to have stable, predictable and reasonable energy prices, we have to keep moving forward and working in the same line that we have been doing since June 2018 “, he indicated.
In fact, in these more than two years “we have achieved almost uninterruptedly, with some conjunctural episode such as these days -but the trend is very clear-, a reduction in energy costs close to 40%, which is unheard of“, has highlighted.
The measures that have been taken to facilitate self-consumption, connected self-consumption, high shared consumption, coal output which was much more expensive, investments in efficiency or the integration of the auction system has allowed “very significant” reductions of around 17-19% for families in the real bill.
At this time the important thing is to ensure supplies and understand the relative importance of the current peak of these days, since, if there are one or two, “It has no major significance in the bill, it is not what it appears,” he stressed.
Ribera does not believe that the price is going to skyrocket more, although he anticipates that it will remain high for some days while the storm lasts.
It has advanced that it is estimated that throughout January and early February, gas prices will return to their normal ranges or even lower.
According to the minister, the definitive solution is closely associated with the generation of 100% renewable, which takes time and in the meantime “we have been incorporating measures that have had a very positive impact on our bills because have allowed a very notable reduction in the price of energy to be consolidated in Spain “, has said.
Ribera expect the price to continue to decline in 2021, although this is compatible with the possibility that episodes may occur outside the normal generation and price standards, he has concluded.