The price of electricity marks the most expensive Sunday in January, reaching 213.10 euros megawatt hour

The average price of electricity in the wholesale market will drop 2.61% on Sunday compared to this Saturday, registering the most expensive Sunday in January. Specifically, tomorrow’s ‘pool’ will register an average price of 213.10 euros megawatt hour (MWh), almost six euros less than the 218.82 euros/MWh this Saturday, according to provisional data published by the Iberian Market Operator of Energy (OMIE).

By time slots, the maximum electricity price for this January 15 will be between 7:00 p.m. and 8:00 p.m., with 265.36 euros/MWh, while the minimum, 186.60 euros/MWh , will be recorded between 5:00 and 6:00.

Compared to a year ago, the pool price for this Sunday will be 214% more expensive than the one registered on January 16, 2021, of only 67.72 euros/MWh. The prices of the ‘pool’ have a direct impact on the regulated rate, the so-called PVPC, to which almost 11 million consumers in the country are covered, and serve as a reference for the other 17 million who have contracted their supply in the free market.

The rise in the electricity market in recent months is mainly explained by the high prices of gas in the markets and of carbon dioxide (CO2) emission rights, at all-time highs this year.

Electricity picks up this Saturday by 7.8%

The average price of electricity in the wholesale market will rise 7.8% this Saturday compared to this Friday, exceeding 215 euros megawatt hour (MWh) and reaching its second highest level so far in January.

By time slots, the maximum electricity price for this Saturday will be between 7:00 p.m. and 8:00 p.m., with 267.02 euros/MWh, while the minimum, 193.04 euros/MWh, will be will register between the hours of 5:00 and 6:00.

2021, the most expensive year

Electricity closed 2021 as the most expensive year in the historical series, with an average price of 111.93 euros/MWh due to the upward spiral registered in the pool in the second half. The month of December registered an average monthly price in the wholesale electricity market of 239.1 euros, the highest monthly price in history after exceeding the 200 euros/MWh of last October by more than 39 euros.

The Government has extended until April 30 the reduction of taxes included in the electricity bill paid by all consumers in order to mitigate the negative effect that the rise in the price of electricity is having on citizens.

Specifically, the reductions from 21% to 10% of VAT and the special electricity tax from 5.11% to 0.5%, the legal minimum, have been extended until April 30. However, the suspension of the 7% generation tax paid by companies will only be maintained, for now, until March 31.

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