In just two weeks, Spain went from the highest to the lowest energy rates in Europe! What caused prices to rise so dramatically in such a short period of time? Why have the rates suddenly become the lowest in the whole of Europe?
Spain was one of the EU countries where the cost of electricity for consumers had increased the most. As a result, a large part of Spanish people could barely afford to pay their energy bills.
At the beginning of January, Spain had the highest rates in all of Europe. However, within two weeks, Spain went from the highest to the lowest rates for gas and electricity in the EU. On January 8, 2021, the price for electricity rose to 94.99 euros / MWh and 55 euros / MWh for gas.
A combination of various factors caused the price to increase substantially in Spain
Firstly, unexpected, extreme cold weather conditions have increased demand. Furthermore, tensions in the North Asian market spilling over to the rest of the World, Algeria reducing gas supplies to Spain by a quarter and several other factors contributed to the ever-increasing gas rates and electricity.
Two weeks later, rates in Spain are the lowest in the EU
On January 23, 2021, the price for electricity fell to 27 euros / MWh and 22 euros / MWh for gas in Spain. The cold snap appears to be over, therefore, the demand for electricity is falling again. In addition, a new storm is expected to arrive bringing with it strong, high winds, which will beneficial for the generation of wind energy.
The weather has put an end to the ever-increasing rates for gas and electricity in Spain. As a result, energy companies manipulating rates no longer dominate the news.
Erratic rates for all European countries
It is not only the Spanish that have had to deal with these extreme peaks in electricity and gas prices. Other European countries were also subject to erratic rates, elperiodicodelaenergia.com wrote last Saturday.
Not all Spaniards will benefit from these significantly, lower rates!
The website writes that only the 11 million Spaniards with a PVPC rate or a regulated rate will benefit from these cheaper rates. Those who have a contract with a fixed interest will for the moment, pay considerably more for gas and electricity. However, the CNMC (National Commission for Markets and Competition) previously announced that ultimately, the regulated tariff is the cheapest for consumers in the long term.
