THE price of electricity in Spain will break new records on Wednesday as Spain’s electricity operator (OMIE) predicts an average cost of €291.73 per megawatt hour (MWh).
This will exceed the record set on October 7 when electricity prices hit €288.53 on Spain’s wholesale electricity market.
Costs have fallen to €100 per MWh on days in December, before a spike related to soaring natural gas and CO2 emission costs has sent prices upwards once again.
Costs per MWh are also set to exceed €300 for a four-hour period between 6pm to 11pm.
The costs for Spain’s wholesale electricity market serve as a reference for 17 million households buying electricity on the free market.
It means that consumers will be paying a base of €0.30 per kilowatt hour (KWh) on Wednesday, plus 10% VAT. Average households in Spain consume 10 KWh of electricity per day.
It comes after Spain’s government passed emergency measures to make sure no one pays more for electricity than they did in 2018.
The 10% VAT paid on top of base electricity costs is one of those temporary measures after the government reduced it from 21% after gas prices began soaring in the summer.
The government also halted a 7% tax on electricity generation during the third quarter of 2021.
The cost of fuel last month also reached its highest prices since 2012, with petrol costing €1.509 per litre and diesel €1.376 last.