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Date Published: 22/09/2021
ARCHIVED - Electricity prices in Spain are on the rise again
After a brief reprieve over the last few days, the cost of electricity has set a new record high in Spain
Just days after the soaring rise in electricity prices appeared to take a breather and stabilise slightly, Spain has reported yet another hike in the wholesale market this Wednesday September 22. The average daily price of electricity has jumped to 175.87 euros per megawatt hour (MWh) after remaining below 160 euros for the past four days for the first time in months.
This new high price, according to electricity market operator (OMIE), marks the second highest cost in the history of Spain, only behind the 188.18 euros seen on Thursday September 16.
The price this Wednesday will be 17% higher than the previous day, 1.8% higher than the same day last week and a staggering 247% more expensive than this time last year, when each megawatt hour cost just 50.67 euros.
Using household appliances will be the most costly between 8pm and 9pm, while consumers will get the most bang for their buck from 2am to 3am, when the price will drop to 147.30 euros.
After breaking all records in July and August, September has already registered a historical high, with experts blaming the international price of gas and the cost associated with CO2 emissions for the crazy prices. In the midst of a heatwave in August, electricity prices were rising day after day, causing the average monthly price to skyrocket to 106 euros / MWh, the most expensive ever recorded, followed by July at 92.4 euros.
In order to lessen the burden on consumers, the Spanish government has approved a shock plan that will maintain the VAT reduction at 10%, suspend the 7% tax on electricity generation and reduce electricity tax to 0.5%.
However, the government has warned that, despite these measures, wholesale prices will continue to rise at least until March next year, but that the average consumer should shortly begin to notice a reduction in their bill.
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