The price of electricity in the wholesale market (pool) has been set for tomorrow, February 28, at 277.78 euros per megawatt hour (MWh), which represents a rise of more than 8% compared to the value set for this Sunday, which will be its highest price of the year.
According to data from the Iberian Electricity Market Operator (OMIE), the maximum price tomorrow will be recorded between 8:00 p.m. and 9:00 p.m., when it will be 346 euros/MWh, while the minimum will be 218.97 euros /MWh between 15:00 and 16:00.
After this rise, which takes place in the middle of Russia’s military offensive on Ukraine in the face of the uncertainty of a possible rise in energy prices following the sanctions imposed by the European Union on the country presided over by Vladimir Putin, the price of electricity will multiply by 15 the amount registered just one year ago, when it was paid at 18.53 euros/MWh.
In addition, the price for this Monday will once more exceed the barrier of 200 euros/MWh, a value that was reached in nearly 80% of the days in December, in more than 70% of those in January and in more than 40% of those of February.
Thus, electricity will close February with an average price of 200.23 euros/MWh, almost 40 euros less than the average registered during the month of December (239.22 euros/MWh), the most expensive in history to date, and slightly below the 201.72 euros/MWh of January.
However, it marks a price almost 90 euros higher than the average for 2021, which was crowned the most expensive year in the historical series with 111.4 euros/MWh, more than triple the previous year.
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 the electricity bill (VAT, electricity tax and electricity generation tax) during the first quarter of the year.
The prices registered in the wholesale market have a direct impact on the regulated tariff or PVPC, to which almost 11 million consumers in Spain are covered, and serves as a reference for the other 17 million who contract their supply in the free market.
Behind the increase in prices are the high prices of gas in international markets and of carbon dioxide (CO2) emission rights, which since mid-2021 have been marking historical highs month following month.
In this sense, the military conflict between Russia and Ukraine might 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 sanctions imposed by the European Union.
As for the rest of the European countries, in the United Kingdom the megawatt hour will be paid tomorrow at an average of 205.72 pounds (regarding 245 euros), while in Germany it will be paid at 208.3 euros; in France, at 250.95 euros; in Italy, at 247.04 euros; and in Portugal, at the same price as in Spain by sharing the market.
