Spain pays for the most expensive electricity in its history as it tries to emerge from the crisis


Madrid, Jul 20 (EFE) .- Spain records this Wednesday the highest average price of electricity in its history, after several months of increase and also an increase in locomotive fuels such as gasoline and diesel, which may hinder the recovery, which has just started, of the serious covid-19 crisis.

While many families are suffering the socio-economic consequences of the epidemic, the prices of energy, housing and certain foods keep Spanish inflation at 2.7% over one year, the highest rate since four years,

Until last June, electricity increased by 37.1% last year.

To contain the electricity bill consumers pay, the government lowered value added tax (VAT) this month from 21% to 10%.

However, the average price of electricity continues to skyrocket in the wholesale market and today will reach an average of 106.57 euros (around $ 125) / megawatt (MWh), which is 4.6% more than this Tuesday, with a maximum which will reach 110.64 today. euros / MWh, according to the Operator of the Iberian Electricity Market (OMIE).

The vagaries of electricity affect the more than ten million consumers covered by the regulated tariff, while 17 million have a fixed price agreed throughout the year.

The increase in electricity prices in the wholesale market has again sparked debate over how it works, as the cheapest sources charge the same price as the more expensive ones.

The increases are driven by high gas prices on international markets and CO2 emission rights.

In addition, power plants without polluting emissions bring the prices of their offers closer to those of combined cycles, which consume gas and pay CO2 rights.

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