The average price of electricity in Spain will be triple today, Friday, January 20, according to Iberian Energy Market Operator (OMIE)
The average price of electricity for regulated rate customers linked to the wholesale market in Spain rises by 170.74 per cent today, Friday, January 20, when compared to today, Thursday, January 19- it now stands at €90.78/MWh.
Today’s minimum price of €29.99/MWh will occur between 2 am and 3 am. The maximum price will be recorded between 7 pm and 8pm when it will be €207.80/MWh.
It must be remembered that without the ‘Iberian exception’ mechanism to cap the price of gas for electricity generation, the price of electricity in Spain would be higher, at an average of around €119.85/MWh.
This would be €29.07/MWh more than the compensation for regulated rate customers, who will pay 24.26 per cent less on average as a result.
Why are electricity prices so high?
Europe is getting more of its power from renewable sources every year. However, as the current crisis has shown, power markets remain at the mercy of increasingly volatile gas prices.
The EU Commission has recently proposed a plan to relieve the crisis by decoupling electricity and gas prices. But the plan must strike a balance between addressing skyrocketing prices and protecting the cross-border power market the EU has been rolling out across its member states since the 1990s.
