There seems to be no end to it. The rise in the price of electricity continues unabated. On September 1, there may be a new record of €139 MWh at the most expensive time of the day. The average electricity bill in Spain will increase by 25% over the year.
On Wednesday, there’s a new record on the wholesale market: €132.47 MWh. This is apparent from preliminary data from OMIE, the appointed operator of the electricity market. That is the day’s average price, because between 21:00 and 22:00 (rush hour) the price will exceed €139 MWh. September starts in the same vein as August, which was the most expensive month in the market’s history.
Electricity bill to rise by 25%
The Spanish cabinet admitted electricity bills will eventually rise by an average of 25% compared to last year. Teresa Ribera, the third vice president and minister for the Ecological Transition, said on Monday we are only comparing with a year when energy prices hit historic lows. In 2020, lower consumption as a result of the corona crisis and higher production of renewable energy caused kilowatt prices to fall sharply. The average annual price was around €30 MWh. In the first half of 2021, that average was already above €45 MWh.
The political party Unidas Podemos proposes to the government to set a maximum price for nuclear and hydraulic energy. However, Minister Ribera ruled out this option on Monday because it would fall outside the legal framework of the European Union. Unidas Podemos is now proposing citizens to put pressure on the government through demonstrations to do something about the high price of electricity.