Oh my, Omie!! Electricity prices soar
The wholesale price of electricity on the Iberian energy market has hit an all-time record, making electrical power costlier in Spain and Portugal than nearly anywhere else in Europe.
On Tuesday, the price of electricity on the Iberian market reached €106.57 per megawatt/hour (MWh), the highest since records began.
It beat the previous record seen the previous day which has been €101.8. The values refer to the average sale price for wholesale energy for next-day contracts.
The Association for Energy Traders in the Liberal Market (ACEMEL) has admitted that the high prices will get even higher in the near future.
“We will see prices continue to rise as more and tighter policies towards green energy transition are developed in Europe because there isn’t a sufficient uptake of renewable energies in the market.”
“And we will see prices continue to rise until we have the technical conditions to be able to be supplied by production of energy from non-polluting technology, alone,” says Ricardo Nunes, president of ACEMEL.
In Spain, consumers who inevitably pick up the tab with higher electricity bills are already complaining at record-high prices just as high summer temperatures require the use of energy guzzling air conditioners and cooling systems.
The government in Spain says that the latest increases in electricity bills are driven by the so-called carbon certificates which give companies the right to release carbon dioxide, gas imports that Spain needs to complete its energy mix, and the surging power demand in the summer months.
The entity that publishes the electricity prices from the market OMIE says that wholesale electricity prices €/Mwh will be €95.89 today for Spain and €95.89 for Portugal.