Spanish heat wave causes electricity price spike

Staff reporter AVERAGE prices in Spain's liberalised energy market have risen nearly 20 percent in August due to soaring demand amid a heatwave, official data showed yesterday. The average price in the daily pool auctions for large consumers hit 0.04988 euro per KWh for yesterday, based on Monday's bids, versus 0.4177 euro on Friday, according to the electricity market operator OMEL. Energy demand yesterday reached 624'422 MWh versus 616'211 on Friday. Spain's National Meteorological Institute forecast highs of 41 degrees centigrade (106 degrees Fahrenheit) in the southern region of Andalusia and 36 degrees centigrade (97 degrees Fahrenheit) for the Madrid area yesterday with temperatures in the Balearics staying in the 30ºC to 35ºC region. Energy demand hit a record in July with a 7.6 percent year-on-year increase. The increased demand stands to benefit Spain's listed utilities Endesa, the parent company of GESA, the energy provider in the Balearics, Iberdrola and Union Fenosa as well as gas distributor Gas Natural. Power demand in the Balearics is reaching all time highs although traditional peak demand is not expected until the middle of this month, but with the hotel sector claiming it is fully booked, demand will be nearing its peak and all time high.