What happens to electricity prices and how it will affect consumers?
The price of electricity on the wholesale market as of Tuesday 12 January 2021 was 84.25 € / megawatt hour (MWh). It should be noted that this is more than € 10 below the historical high of the price (€ 94.99 / MWh), which was reached on Friday 8 January. This is the official data of the Operador de Mercado Ibérico de Eléctrico (OMIE).
The electricity price in the wholesale market directly affects the electricity bill of all consumers, even those receiving social benefits or identified as vulnerable.
According to the simulator of the National Commission for Markets and Competition (CNMC), in the first eight days of January, electricity received by a consumer with an installed capacity of 4.4 kilowatts and an annual consumption of 3,000 kilowatt-hours (250 kWh per month) at an adjustable rate or price for small consumers (PVPC) will reach 54.22 euros. This figure is 30.8% higher than the cost of the account for the first eleven days of 2020, which was 41.43 euros, and will even exceed the cost of January 2020 as a whole, when the amount reached 54.22 euros.
On Friday, January 8, coinciding with the first heavy snowfall left behind by Hurricane Philomena, demand peaked at 42,226 MWh since 2012, although it did not break the all-time high on December 17, 2007.
It should be noted that the increase in electricity prices coincided not only with the arrival of Hurricane Philomena and a sharp drop in temperature, but also with a drop in electricity production from renewable energy sources. The lack of sun and wind forced the power system to use gas and coal reserves, which caused prices to rise.
The government plans to start drafting a bill this year that will make it possible to create a fund that will remove the fixed costs associated with financing renewable energy from the electricity bill for the average consumer. A measure that will reduce the consumer bill by 13% in five years and will be supported by contributions from sellers of electricity, gas and oil products based on their sales.
Government spokesman Maria Jesus Montero explained on Monday that the increase in the price of electricity represents only a fraction of the electricity bill, so this increase will not be linearly transferred to the consumer and that it will be necessary to wait for the final result of the effects of recent days.
The Organization of Consumers and Users (OCU) proposes to use smart appliances and heating systems to reduce energy bills for consumers. According to the recommendation, the temperature in the living room of 19-21 ºC is optimal, and at night it is recommended to reduce it to 15-17 ºC.