Energy prices on a high
At 9pm tonight the price of electricity will rise to almost 100 euros per MWh with the average price more or less double what it was a year ago
Electricity prices continue to rise. The recent period of cold weather led to a price of 87.9 euros per megawatt hour (MWh), or 4.8% more than the 83.85 euros set yesterday, according to figures gathered by the Iberian market operator, Omie. The price today –set yesterday by the operator– is the second highest price of the year, surpassed only by the 88 euros per MWh on Friday.
These prices are the highest since December 2013, which at the time led the state government to suspend the former electricity auction system and replace it for today's system, in which prices are set according to the hourly market rate.
Prices fell slightly over the weekend due to a fall in demand, coming in at an average of less than 80 euros per MWh, even though they were still the highest for a weekend since December 2013. The demand forecast for today is 632 gigawatts hour (GWh), in line with yesterday's 633 GWh, according to Omie.
The most expensive time today will be 9pm, when wholesale prices will reach 99.1 euros per MWh, while the least expensive of the day will be 5am, at a price of 69.09 euros per MWh.
Apart from demand, other aspects influencing the final price are the low level of hydraulic resources and the high prices of coal and gas, as well as the high export of electricity to France, whose energy production has dropped drastically since October with the stoppage of eight nuclear power stations. The hourly prices apply to domestic customers with smart meters and hourly tariff rates, which allow for better management of consumption but also leave these consumers vulnerable to the volatility of the market.