Electricity reaches its highest price in history with 141.7€ per megawatt/hour

The average price of electricity in the wholesale market returns to beat historical record this Thursday. It has increased by 4.4%, to 141.71€ the megawatt/hour (MWh) exceeding 140.23€ that marked 2 September.

At peak hours of the day, the maximum price will be 155.62€ and will be reached between 21:00 and 22:00. The minimum shall be 120,92€ and shall be recorded between 5:00 and 6:00 in the morning.

Pedro Sánchez, announced on Wednesday that the Council of Ministers will approve “soon” new measures so that the cost of electricity “does not impact fully on the economy of households and even less on the economy of the most vulnerable households”. In addition, the Government opens the door to lower taxes.

The electricity bill includes 3 taxes:

• VAT, which has already been reduced from 21% to 10%. It could still be reduced to 4%.
• The electricity generation tax of 7%, which is currently suspended.
• The 5% electricity tax. This is the tax that has not yet been touched.

In his speech to Congress he has argued that the government is facing with “forcefulness, empathy and rigor” the “worrying escalation” of the wholesale price of the energy market.

In addition, he has mentioned measures to protect vulnerable consumers, such as a vital minimum consumption that will complement the minimum living income, and others already undertaken, such as the approval of a thermal social bond.

He also indicated the introduction of specific tax measures to cushion the impact of electricity price developments and other measures to ensure that part of the profits of electricity undertakings do not go into their profit and loss accounts, but in the form of a reduction in the price of light.

The electricity companies have asked the Government that, if something changes on the electricity bill, it must come from the section of taxes.

José Bogas, CEO of Endesa, says that in 2022 we will be at normal levels. ” It is not the fault of either the companies or the government, “he says.

For his part, Francisco Reynés, president of Naturgy, points out that “we are subject to market forces, such as gas. In contrast, Antonio Llardén, president of Enagás, says that gas “is not responsible” for the rise in the price of electricity.