• Economy Teresa Ribera is willing to reform the electricity rate

The

average price of electricity

in the wholesale market will hit new all-time highs this Friday for the fifth consecutive day, with an average price of

117.29 euros per megawatt hour

(MWh), thus surpassing the record reached this Thursday of 115.83 euros.

Since Monday,

historical records in the price of electricity have been

recorded

day after day

, now coinciding with the heat wave that, from this Wednesday until next week, will hit the country, with some of the highest temperatures ever recorded in Spain.

This context of climate change is also one of the main causes of the continuous rise in energy prices, since it responds to carbon dioxide (CO2) emission rights, which seek the transition towards a renewable energy model.

Last year at this time,

the average price was 40 euros

, so the increase is 190%, that is, the price this Thursday will almost triple that registered exactly one year ago, according to OMIE data.

The electricity pool will register for this Friday, August 13,

an average price of 117.29 euros / MWh

, exceeding all the levels of July and even the peaks of this start of August, a month that has already marked eight all-time highs.

The price will be at all times above 100 euros / MWh

, marking its daily maximum from 9:00 p.m. to 10:00 p.m. (128.54 euros / MWh).

The minimum will be given between 04.00 and 05.00 (101.52 euros).

The

price of electricity

continues like this in this beginning of August with the tension experienced throughout July, which led to an average closing of 92.42 euros / MWh, which is the highest level in history and a 166.8% above the same month last year.

In addition, so far in August,

the 'pool' has already registered eight new records

, including the five days this week.

On Monday, Tuesday and Wednesday of last week the other historical records prior to this week were recorded.

CO2 RIGHTS AND GAS PRICE

This increase in the price of the electricity market is motivated by the

high prices of emission rights and the increase in the cost of natural gas

.

Specifically, emission rights have become more expensive to exceed

54 euros per ton

at the beginning of August

, when at the beginning of the year they were trading around 33 euros.

Meanwhile, the price of natural gas has already risen to 41.7 euros per MWh, according to Mibgas data.

The price of energy has a close weight in the bill of around 24%, while around 50-55% corresponds to tolls -the cost of transmission and distribution networks- and charges -the costs associated with development from renewables, to extrapeninsular ones and the rate deficit annuities - and the rest, to taxes.

The

fluctuations in the daily price

affect consumers covered by the

regulated tariff

(PVPC), just over 10 million, while those in the free market are exempt -about 17 million-, since they have an agreed price with your company.

According to experts in the sector, 88% of electricity consumption in Spain is not exposed to the volatility of the price of the 'spot' market, as they have contracts with fixed prices, thus being exposed to customers under the PVPC.

IN JULY, A RECEIPT INCREASE OF 36%

The electricity bill of an average user

has increased by 36.2% in July

compared to the same month last year, standing at 85.34 euros, according to data from Facua-Consumidores en Acción.

The reduction in VAT to 10%

until December while the average price per megawatt hour is above 45 euros dampens the rise by 8.54 euros.

If 21% were still applied, the receipt would have broken all records, reaching 93.88 euros, according to the association's calculations.

On June 24, the Government approved a

Royal Decree-Law

as a matter of urgency to reduce the taxes that are applied to the supply of electricity and, with it, the electricity bill of homes, the self-employed, SMEs and the group of companies, which entail the reduction of VAT on electricity from 21% to 10% until the end of this year and the suspension of the 7% tax on electricity generation for three months.

In the specific case of VAT, a 10% reduction is applied until the end of the year for all consumers with contracted power

up to 10 kilowatts

(kW), provided that the average monthly price of the wholesale electricity market is above 45 euros per megawatt hour (MWh).

Regarding the suspension of 7% of the tax on the value of electricity production, which already in 2018 was decided to temporarily suspend for six months to contain another upward wave in the price of electricity, will be in force during the third quarter of this year.

According to the criteria of The Trust Project

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