Electricity prices hit shocking new highs
The wholesale price of electricity on the Iberian market hit a new historic high this week because of the high price of natural gas and an increase in the cost of carbon dioxide emission rights licences.
The Iberian pool price was set at an eye-watering €309.20 per megawatt per hour (MWh), the highest in history, for the third consecutive day.
According to data published by the Iberian Electricity Market Operator, the record price on Friday is 2.2% higher than the price registered on Thursday, which was also a record amount.
The sustained and continuing high costs of power will not only be reflected in higher production and manufacturing costs, but will, sooner of later, be passed on to businesses and household consumers unless subsidised by governments or price set through contracts by electricity company providers.
The high prices, which affect a large swathe of Europe, is down to high gas prices on the international markets which is used in electricity power stations, and where the price is set almost on a daily basis, and an increase in CO2 emission credits.
Portugal and Spain share the same wholesale market and the average wholesale electricity price in both countries is the same.