The average price on the day will rise to 4.05 euros/MWh and between 1:00 p.m. and 5:00 p.m. it will be -0.01 euros/MWh
MADRID, 6 Abr. (EUROPA PRESS) –
The wholesale electricity market, the so-called ‘pool’, will register a price this Sunday around 0 euros until 8:00 p.m., although the average price throughout the day will be 4.05 euros per megawatt hour ( MWh) compared to the 0.74 euros recorded this Saturday.
Specifically, between 00:00 and 20:00 the price in the pool will be around 0.0 euros/MWh, and will even be -0.01 euros/MWh between 13:00 and 17:00 , according to provisional data from the Iberian Energy Market Operator (OMIE) collected by Europa Press.
In total, this Sunday they will accumulate up to a total of twenty hours at practically zero euros/MWh or at a negative price, while the maximum of the day will be 35 euros/MWh, between 9:00 p.m. and 10:00 p.m.
With this Sunday there will now be four days this week in which the ‘pool’ has registered negative prices in some of its hours, a fact that had never occurred until last Monday.
The average price of the wholesale electricity market on Sunday will be 4.05 euros/MWh, which to a certain extent breaks the trend of the last two days in which the price did not exceed the euro – this Saturday, 0.74 euros/MWh, the tenth lowest value in the history of the pool was achieved.
The significant presence of renewable generation at the beginning of April, in the form of wind and solar, with a notable participation of hydraulics with the water dammed from the important rains at Easter, places the average in the first seven days of the month at 4.4 euros/MWh.
In March, the lowest average pool price in history for a month was already seen, with 20 euros per megawatt hour (MWh), half that of the average price recorded in February and 77.5% less than in March. 2023, when it stood at 89.6 euros/MWh.
However, these negative or very low prices are not exactly transferred to the receipt of those zero euros, since there are fixed costs for the electricity consumer, due to tolls, charges and system adjustments.
Furthermore, in February, after registering an average lower than 45 euros/MWh, the ceiling set in the Royal Decree of urgent measures, electricity temporarily recovered its Value Added Tax (VAT) of 21% since March, something that will remain in this month of April.
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, VAT would become 21% whenever the wholesale price was below that level 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.
Furthermore, 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 prices in the medium and long term to avoid strong fluctuations, without losing the short-term price references that encourage savings and efficient consumption.
In this way, 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% starting in 2026.
