EXPLAINED: The five stumbling blocks Spain's PM ahead of snap election
Known as a political survivor who's previous gambles have largely paid off, Spanish Prime Minister Pedro Sánchez is really walking the tightrope this time, ahead of the snap general election which he called for November 29th.
Winter electricity bills in Spain could vary based on the tariff a household is on. As the heating season approaches, the wholesale electricity price has reached €200 for the first time since 2022. However, this €200 figure does not represent the final bill a household will pay, as it depends on the tariff they are enrolled in. The daily wholesale electricity market in Spain, where power is bought and sold the day before use, saw an average price of €201.99 per megawatt hour (MWh) on October 6 – the first daily average above €200 since December 2022.
Prices fluctuated throughout the day, ranging from €147.09 in the cheapest hour to €281.31 during peak evening hours. Factors contributing to the increase include higher demand and more expensive gas, which sets the price during non-solar production hours. September's average price reached €143.26 per MWh, the highest monthly average since 2022, and 134.7 per cent higher than the same month last year.
Some relief was observed on October 7, with the daily average dropping to €182.33 per MWh, but 11 hours were still forecast above €200, with the cheapest hour at €86.33. It is important to note that a megawatt hour is equivalent to 1,000 kilowatt hours (kWh), and €200 per MWh translates to approximately 20 cents per kWh for the pure energy cost.
Household bills also include network charges, supplier margins, and taxes, so a few expensive days would not immediately result in a higher bill. The households most directly affected are those on the regulated tariff, or PVPC (Voluntary Price for Small Consumers), which comprises about eight million Spanish households. PVPC rates change throughout the day, reflecting the wholesale market, and some customers benefit from the government's bono social discount.
While the PVPC tariff's exposure to wholesale prices has decreased due to 55 per cent of the energy price being based on futures contracts, extreme weather conditions or gas price hikes could still drive up daily costs. Households on free-market contracts, where suppliers set their own prices rather than following PVPC, will be affected according to their contract terms.
Fixed-price deals protect against wholesale price fluctuations, while market-tied contracts are not. Checking hourly prices published the evening before by ESIOS, Spain's data platform, can help consumers save money by scheduling energy-intensive tasks during cheaper hours.
Written by urgent.news from Euro Weekly News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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