The energy price dropped 39% in February and reached its lowest value since the end of 2009
The price reduction is the consequence of the operation of the Santa María and Bocamina II coal-operated plants, the lower gas value and the February rainfalls. The drop has no effects on the residential customers’ electricity bills.
During the last three years the electric power industry has shown high prices, specifically in the Interconnected Central System that covers 94% of the whole country’s population.
The trend could end in 2013 because the first two months of this year the marginal cost – the electricity value in the spot market that is determined by the less efficient unit delivering energy that directly affects the non-contracted customers – has experienced a deep step-down.
In accordance with the information obtained from the Delivery Center of SIC (Cdec-SIC) between February 1st and 25th the energy price in the Quillota knot (representative for the central zone of the country) averages US$111 per MW/h, which represents a 39% if compared against the US$182 per MW/h the same month in 2012.
Besides, if one compares against the rest of the months of the year, the US$111 per MW/h correspond to the lowest value since December 2009 when marginal cost reached US$85 per MW/h. Additionally, it must be said that February is reporting the lowest energy prices since 2008.
The drop in the energy values had already been observed in January. In accordance with the last report of Electroconsultores consultants the marginal cost average was US$120 per MW/h.
This reduction will directly benefit the large-size companies most of which have established in their supply contracts the marginal cost variable when purchasing energy from the generation plants.
This point is non-negligible if one considers that in 2012 the industries, and especially mining companies, strongly increased their costs because of the energy high price.
On the other side, the drop has no effect over the values the residential customers pay in their electricity bills. This is due to the fact that the contracts ruling the residential supply have been set with prices regulated by the authorities and are not subject neither exposed to the marginal cost.
Source: El Mercurio
