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The price of electricity will drop below 100 euros on a daily average for the first time in almost two months

The price of electricity in the wholesale market will plummet this Monday below 100 euros per megawatt-hour (96.08 euros), something that has not happened since November 1 (also Monday), when the megawatt-hour cost on average 91.2 euros. But unlike last November 1, this Monday's session stands out for a huge price contrast during the day (the minimum price will be 2.67 euros, between 2 and 6 in the morning, while the maximum will amount to 207.10 euros, between 6 and 7 p.m. ).

This occurs despite the fact that the price of gas natural in international markets remains high (although below the maximum 180 euros that it reached a week ago) when it stands at around 100 euros per megawatt-hour in which it has been installed for a couple of days and the price of CO2 emission rights as well (around 75 euros). And it is because the wind generation during the early morning is capable to cover all the demand for those hours, which produces that price collapse during the night hours, while during the day prices remain high because it is the hydraulic system that sets the level, infected by the price of combined cycles ( what is known as opportunity cost).

This argument is even more evident when compare the price drop this Monday in Spain –49% compared to the 188.53 euros per megawatt-hour on average this Sunday– with that of the rest of European countries sharing the same pricing system

– the cost of a megawatt-hour in France falls by 13.1%, to 161.08 euros per megawatt-hour, while in Germany it falls by 13, 7%, up to 148.83 euros– per or with a 'mix' of a different generation .

A very volatile month

During this month of December, the price of electricity in The wholesale market has shown all its volatility, going from exceeding 400 euros for a few hours on December 23 (between 8 am and 10 pm) to falling to prices as low as 2.67 euros this Monday. And everything seems to indicate that this will be the trend of the last bars of the year with a meteorology marked by wind and rain , which favors the Spanish generation 'mix', at a time of gas prices soaring.

All in all, December will almost certainly be the month with the price of electricity in the wholesale market highest of all year. Currently, in the first 27 days, the average monthly price amounts to 251.38 euros per megawatt-hour , well ahead of the 200.06 euros per megawatt-hour that was recorded as a record monthly average in the month of October.

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The unknown of January

It should be remembered that these figures correspond to a part of the receipt – together with charges and tolls (regulated costs) and taxes–, and directly affect only a part of consumers –those 11 million that have a regulated tariff or PVPC–, although it serves as reference to establish the rates of the rest of users of the free market (17 million). Although, in recent months the charges have been reduced by 96% for domestic consumers and taxes, too (VAT is at 10%, instead of 21%, and the Special Tax on Electricity at 0 , 5%, instead of the usual 5.11%, in addition 7% to the generation of electricity is suspended). As of as of January , the Government has extended the reduction of the taxes, but plans to reduce the reduction in charges from the current 96% to 30.9%. In the case of tolls, the National Markets and Competition Commission (CNMC) has approved a reduction in tolls of 2.5% for homes and of

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