Electricity prices reach record high in Spain
The average price of electricity on the wholesale market in Spain reached a historical maximum at 106.57 euros per megawatt (MWh), according to data published on Tuesday by the OMIE, the body that manages the electricity markets in Spain, Trend reports citing Xinhua.
Electricity prices during the day will reach a maximum of 110.64 euros per MWh, with the day's minimum at 100.83 euros per MWh due to a combination of factors, such as gas prices, CO2 emission rights and a lower contribution of renewables in the electricity mix.
This has coincided with temperatures of around 40 degrees centigrade in much of Spain this week.
The Spanish government has attempted to mitigate rising prices by lowering sales tax on electricity from 21 percent to 10 percent until the end of the year and by suspending the 7 percent tax on electricity generation for three months.
Nevertheless, despite these efforts, data from consumer protection group Facua Consumidores en Accion show the electricity bill of an average user has risen 34.6 percent in the first half of July compared to the same month in 2020.
The high energy prices also have a negative effect on Spain's industry.