The electricity bill has chained its third consecutive rise in the year in May, making it the most expensive in all of 2021 due to the rise in the cost of CO2 emission rights. This record comes a day before the Government takes a draft bill to the Council of Ministers to cut the benefits obtained by nuclear and hydroelectric plants with the rise in CO2.
The electricity bill for May even exceeds that of April, when it reached 62.56 euros, which had been the most expensive of the year to date. According to Efe, based on data obtained from the simulator of the National Markets and Competition Commission (CNMC), for a typical consumer -with a contracted power of 4.4 kilotav and an annual consumption of 3,000 kilowatt hours (250 kWh per month), covered by the regulated rate or PVPC-, the receipt for this month will be 63.50 euros, 1.5% more expensive than the April one.
The reason is due to the fact that the price of electricity in the wholesale market stood at 67.12 euros per megawatt-hour in May, above the price registered in May when the storm Filomena triggered the figures. The market price known as ‘pool’ represents about 33% of the electricity bill and is completed with regulated costs (subject to change this Monday with the new rates) and taxes.
The rise this month exceeds 65.07 in April, and in both cases is due to the fact that the price of CO2 emission rights has shot up to around 50 and 55 euros. The Spanish electricity system is marginal, therefore, the price of the latest technology that enters to match supply and demand is the one established for all of them.
This means that there may be only 9% of fossil generation and, however, it is the combined cycles (plants that burn natural gas) that set the price. In this way, the receipt from consumers is more expensive and, at the same time, cheap power plants such as nuclear, renewable and hydroelectric plants receive a high reward, despite their low cost and not emitting CO2.
That is why the Government will take this Tuesday to the Council of Ministers a draft bill to “reduce part of the carbon dividend to non-emitting plants prior to 2005 that sell energy on the market.” In other words, it mainly affects nuclear and hydroelectric plants with the aim of reducing electricity bills.
However, this mechanism will only eliminate the extra benefits that these plants receive from carbon, but not those that they receive when it is cold and there is no wind, as happened during the Filomena stage; In addition, its approval as a draft law anticipates that the change will not be seen immediately on the invoice.