The mean cost of electricity in the wholesale market will decrease this Sunday, January 2nd, by 2.73% in comparison to Saturday’s price, reaching 136.97 euros per megawatt-hour (MWh), based on information from the Iberian Energy Market Operator (OMIE) gathered by Europa Press.
This reduction marks three consecutive days of price decreases, following Friday’s nearly 30% drop.
Electricity prices will fluctuate throughout Sunday. The lowest cost, 103.70 euros/MWh, will occur between 12:00 PM and 1:00 PM, while the peak price of 209.10 euros/MWh will be between 11:00 PM and midnight.
Wholesale market prices directly influence the regulated tariff (PVPC), impacting approximately 11 million Spanish consumers. This serves as a benchmark for the remaining 17 million on free market plans.
The recent surge in electricity market costs stems primarily from elevated natural gas prices and record-high carbon dioxide (CO2) emission allowances this year.
December showed significant price volatility, with daily averages dipping to around 100 euros/MWh.
December’s Peak Electricity Costs
Recent days have seen persistent price swings in the energy market, resulting in a sharp surge in electricity expenses. The average cost for December reached 239.1 euros, a significant 39 euro increase compared to October’s previously record-high average of 200 euros/MWh.
In response to this escalating energy crisis, the government has announced an extension to the tax relief measures integrated into household electricity bills. This relief is designed to mitigate the financial strain on consumers.
The extension covers the VAT reduction from 21% to 10% and the special electricity tax reduction from 5.11% to 0.5% (the statutory minimum), both valid until April 30th. Conversely, the suspension of the 7% generation tax levied on businesses will currently remain in effect only until March 31st.
