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Date Published: 30/09/2021
ARCHIVED - Electricity in Spain five times more expensive than last year
September has exceeded record-breaking July and August for energy costs in Spain
It appears there is little reprieve in sight for energy consumers in Spain as the price of electricity is set to break another historical record on Friday October 1. The average daily cost of electricity in the wholesale market is expected to skyrocket to 216.01 euros, according to data from the designated electricity market operator (OMIE).
This new increase comes amid a global energy crisis which has seen the price of all raw materials linked to energy shoot up in recent months. The price of gas, oil and coal, as well as fuel and other consumer goods, has triggered a huge jump in the cost of CO2 emission rights, also at an all-time high. At the same time, the Consumer Price Index (CPI) indicated on Wednesday that inflation in Spain has reached its highest level in 13 years and has spiked 70% since last August.
Compared to a week ago, when the price of electricity in the Spanish wholesale market was 172.97 euros per MWh, the price this Friday will have increased by 24.88%. That’s a staggering rise of 420.76% or five times more than the same time last year, when each megawatt hour cost just 41.48 euros.
July and August had already broken historical records for the price of electricity, and now September has beaten both, with energy costing an average of 156.14 euros.
Tomorrow, the most expensive time to use household appliance will be between 9pm and 10pm, when it will reach 230 euros per MWh. Consumers will get the most bang for their buck from 3pm to 6pm, when it will trade at 198.77 euros.
Despite the fact that many residents in Spain have noticed a definite increase in their electric bills, the government is hopeful that its shock plan to lower taxes should reduce the impact on the average consumer. In order to control the inflation, the government has vowed to maintain the 10% VAT rate, suspend the 7% generation tax and reduce electricity tax to 0.5%, the lowest rate permitted by Europe. With these measures, it is hoped that the average household bill will fall even as the wholesale price of electricity continues to increase until at least March next year.
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