Until 7 p.m. the price will be 0 euros/MWh
MADRID, 9 Mar. (EUROPA PRESS) –
The price of the wholesale electricity market, the so-called ‘pool’, will drop again this Sunday, to an average for the day of 0.54 euros per megawatt hour (MWh), which will once again register its lowest level in the last decade, after on Saturday it already marked a price of 0.59 euros/MWh.
The maximum price of the day will be 3.2 euros/MWh, between 7:00 p.m. and 11:00 p.m. From midnight until 7:00 p.m., the price of electricity will be zero euros/MWh, according to provisional data from the Iberian Energy Market Operator (OMIE) collected by Europa Press.
However, this price is not then transferred to the receipt exactly at those zero euros, since there are fixed costs for the electricity consumer, due to tolls, charges and system adjustments.
We would have to go back to 2014 and 2013 to find such low levels for a day with average prices for a day below the euro/MWh.
This significant decrease in the ‘pool’ is due, mainly, to the presence of the front that has been leaving abundant rainfall on the Iberian Peninsula since this Thursday, with wind and snow, and which will continue in the coming days, thus promoting the entry of renewables – especially wind – in the generation ‘mix’. In addition, on weekends there is a drop in demand that makes the price even cheaper.
In the first ten days of March, the pool average stands at around 10 euros/MWh, after having added eight days below the level of 10 euros/MWh.
In February, the average daily price of the wholesale market stood at 40 euros/MWh, with a decrease of 46% compared to January and 69.7% compared to a year ago -132.06 euros/MWh-, due to The high participation of renewables, especially due to the storms of the last week.
This fact caused electricity to temporarily recover its Value Added Tax (VAT) of 21% since March, after the wholesale market price registered a lower average in February than 45 euros/MWh, the ceiling set in the Real. Decree of urgent measures.
The last Council of Ministers last year approved that the VAT on electricity would go from 5% to 10% and that this rate would be maintained until the end of 2024, as long as the condition that MWh prices in the wholesale market were met. remain high, above those 45 euros/MWh.
Specifically, the VAT would become 21% whenever the wholesale price was below that bar in the calendar month prior to the last day of billing. That is, all invoices that include consumption for at least one day in March will have VAT of 21%. Only households with the social bonus are free from this increase, since their VAT will remain at 10% throughout 2024.
In any case, the ‘pool’ does not exactly represent the final amount in the price of electricity for a consumer covered by the regulated tariff, since with the entry in 2024 a new method of calculating the PVPC was adopted, which incorporates a basket of medium and long-term prices to avoid strong fluctuations, without losing short-term price references that encourage savings and efficient consumption.
Specifically, the proportion of linkage with the pool price will be progressively reduced, to incorporate the references of the futures markets, so that these represent 25% in 2024, 40% in 2025 and 55% at from 2026.
