The price of electricity this Monday increased by 81.58%, but remains moderate – 29.27 euros/MWh – Economy
The average price of electricity on the wholesale market this Monday will remain moderate, since despite an increase of 81.58% compared to this Sunday, it will be 29.27 euros/megawatt-hour (MWh), and two hours will pass at the price 0. euro/MWh and another one at which it will not reach the euro.
However, the monthly average is €47.95/MWh, which would return VAT to 10% in July after 21% applied in March, April, May and June, as it was not exceeded in the months preceding them (45). euro/MWh on the wholesale market.
According to data published by electricity market operator OMIE and collected by EFE, the price of electricity this Monday will be almost 70% lower than a year ago.
The price of electricity on the wholesale market will be a maximum of 91.27 euros/MWh from 23:00 to 12:00 and a minimum of 0 euros/MWh from 16:00 to 18:00. will not exceed euros from 18:00 to 19:00 and will remain at 0.44 euros/MWh.
The average price for the first 17 days of June is €47.95/MWh, which, if the month had ended this way, would have brought VAT back to 10% for July four months later at 21%.
The fact is that when the government raised VAT from 5%, which was in place to help consumers cope with high prices in the energy crisis, to 10% by 2024, it established that if the wholesale price fell below the monthly average of 45 euro/MWh, within a month after its occurrence, 21% will apply, retaining 10% for social bonus recipients classified as particularly vulnerable.
This possible return of VAT to 10% will occur if a number of measures are implemented to mitigate the consequences of rising energy prices.
The Future of Enhanced Social Bonus Discounts
One of these is the extension of social bonus discounts, which currently stand at 65% for vulnerable consumers and 80% for particularly vulnerable consumers, and which will return to 25% and 40% respectively if these discounts are not extended or other steps in between. were installed.
The so-called “energy justice bonus” approved by the government, a 40 percent discount on energy bills for households made up of low-income workers particularly affected by the energy crisis, will also be cut on June 30 if it is not extended.
The ban on cutting off electricity, water and gas to vulnerable consumers will also be lifted on this day.
In addition, the special electricity tax that applies to the bill, which the government reduced to 0.5% and which became 2.5% in the first quarter of 2024 and 3.8%% in the second, will again be 5.11%.
Also this year, a new Voluntary Tariff for Small Customers (PVPC), known as a regulated tariff, came into force, in which the weight of the wholesale price of electricity at the time of consumption in the bill of these customers became 75%. instead of the previous 100%.
The new PVPC, designed to protect these consumers, including social bonus beneficiaries, from the effects of price volatility in the daily wholesale market, which particularly affected them when prices rose sharply due to the energy crisis, began to apply in this year 2024, unusually low prices in the market.