2023-10-17 14:36:36
The average price of electricity for regulated tariff customers linked to the wholesale market will plummet on Wednesday, October 18, 43.9% compared to this Tuesday, to 60.74 euros per megawatt hour (MWh).
By time slots, the maximum price, of 102.56 euros/MWh, will be recorded between 7:00 p.m. and 8:00 p.m., while the minimum price will be between 4:00 a.m. and 5:00 a.m., with 5 euros/MWh, according to provisional data. of the Iberian Energy Market Operator (OMIE) collected by Europa Press.
In this way, the price of electricity continues to decline, after this Monday – with 141.05 euros/MWh – it reached its highest level since last March 6, when it reached 147.77 euros/MWh. This decrease will be driven by the arrival of the storms to the Peninsula, which will begin this Tuesday with the entry of ‘Babet’, which will leave strong winds and precipitation.
The average 60.74 euros/MWh for this Wednesday’s day will thus be the lowest level for a pool day since last August 27, when it stood at 52.31 euros/MWh.
So far in October, the electricity market average stands at 112.23 euros/MWh, compared to the 127.21 euros/MWh that the pool registered in the same month of 2022.
In the first fortnight of this month the rebound was 12% compared to September, although it was 29% below the level of a year ago. According to Grupo ASE analysts, the electricity price has followed an upward trend this month due to weak wind production, to which has been added the daily price of gas, which has skyrocketed by 70%, and the decoupling of two power plants. nuclear.
Specifically, wind production has been 40% lower than its average for the last five years. During the first fortnight, the generation of this technology has remained at levels of 81 gigawatt hours (GWh), well below the 140 GWh average for the month of October or the 162 GWh registered in October of last year.
The shutdown of two nuclear power plants (Cofrentes and Vandellós II) that were uncoupled from October 9 to 12 and a strong increase in the price of gas in the second week of October has also had an impact, according to Grupo ASE.
To the average price of the “pool” would be added the compensation to the gas companies, which has to be paid by the consumers who are beneficiaries of the measure, the consumers of the regulated tariff (PVPC) or those who, despite being in the free market, They have an indexed rate, but it is once again at 0 euros/MWh, a situation that has been repeated since February 27.
The so-called “Iberian exception” was extended until December 31, following the agreement reached by Spain and Portugal with the European Commission. Thus, it was extended for seven months, until the end of this year, and it was not excluded that it could be extended for longer if said framework was also increased.
Specifically, the agreement not only represented an extension of the Iberian exception that was already applied, but also implied some adjustments to accommodate it, such as the price reference, which until then had increased by five euros per month, and became softer. .
In the original agreement, the aforementioned reference price for gas had an average value of 48.8 euros/MWh: it was 40 euros/MWh for six months, rising by 5 euros/MWh each month thereafter. It has increased by 1.1 euros/MWh since last April, ending at 65 euros/MWh.
Currently, the mechanism has not had any effect on the marginal matching processes in the wholesale markets since the end of February due to the drop in the price of natural gas below the thresholds set for its application, but, if necessary, the extension will allow maintaining a reasonable price, not so dependent on the evolution of natural gas.
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