The rise in the price of electricity gives no respite and makes August the most expensive month in history

Electricity will rise again this Wednesday about 4% to 476.39 euros per megawatt hour (MWh), the second highest price since there are records, according to the results of the auction in the wholesale market or pool and the adjustment to be paid after the gas cap to compensate the plants that use this material. But not only that, as they have collected means like The country or TVE, this escalation makes this August the month with the most expensive light in history.

This price will be, for the second consecutive day, the highest since the gas cap came into force on June 15, and is only below, specifically 13%, the maximum of 544.98 euros/MWh registered on Last March 8, almost two weeks after the start of the Russian invasion of Ukraine

However, according to data from the electricity market operator OMIE and the Iberian Gas Market (Mibgas), the wholesale price of electricity (the one paid by consumers with a regulated rate) will be around 57 euros lower than the 533.46 Euros at which the MWh would have been paid if the cap on gas for electricity generation had not been in place.

A widespread problem in Europe

In a context marked by the energy instability that Europe is suffering, electricity will continue to show historically high values ​​in the main economies of the continent, although tomorrow there will be a slight decrease.

This widespread drop in electricity prices comes one day after the announcement by the President of the European Commission, Ursula Von der Leyen, about a possible “emergency intervention” in the electricity market. The highest price will be registered in France, with an average of 651.77 euros/MWh, followed by Italy, with 612.36 euros/MWh.

For its part, in Germany an average price of 604.49 euros/MWh will be reached, compared to 438.14 pounds/MWh in the United Kingdom (about 512.05 euros at the current exchange rate).

In Portugal, where the cap on gas is also applied by virtue of the so-called “Iberian exception”, the auction price will be the same as in Spain, a country with which it shares a market.

Auction and adjustment

In the case of considering only the results of the auction in the wholesale market, without including the adjustment that the beneficiaries of the cap on gas must pay to compensate the power plants that use this material, electricity will fall by more than 7%, to reach at 187.3 euros/MWh.

By time bands (and always without including the aforementioned adjustment), the maximum price will be registered between 1:00 and 2:00, with 227.82 euros/MWh; while the minimum will be 156.25 euros/MWh, between 5:00 p.m. and 6:00 p.m.

However, to these amounts must be added the cost of adjusting the gas plants, the amount of which varies depending on the volume required by the system and its price, and affects households and beneficiary companies.

For tomorrow, the average adjustment for consumers will be 289.09 euros/MWh, almost 100 euros higher than the average price of the auction, with which the final price will be 476.39 euros/MWh, more than triple a year ago.

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Source: HuffPost Spain for Athena2 by www.huffingtonpost.es.

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