The electricity bill rises again after four consecutive days of falls
The average price of luz for regulated rate customers linked to the market wholesaler will go up this monday 25,9% compared to Sunday, until 242,29 euros per megawatt hour (MWh), according to provisional data from the Iberian Energy Market Operator (OMIE) collected by Europa Press.
In this way, the price rises again after four consecutive days of fallsalthough it is still far from the maximum levels of the beginning of last week, when on Wednesday it reached an average of 476.39 euros/MWh, the highest value since the entry into force of the ‘Iberian exception‘ and the second highest price in history for regulated rate customers linked to the wholesale market, only behind the record of 544.98 euros/MWh registered last March 8before the application of the ‘cap on gas’.
This price is the result of adding the average of the auction in the wholesale market to the compensation that the demand will pay to the power plants. combined cycle for the application of the ‘Iberian exception’ to limit the price of gas for the generation of electricity.
In the auction, the average price of electricity in the wholesale market – the so-called ‘pool‘– stands for this Monday at 188.53 euros/MWh. The maximum price will be registered between 9:00 p.m. and 10:00 p.m., with 277 euros/MWh, while the minimum for the day, of 121.19 euros/MWh, will be between 4:00 p.m. and 5:00 p.m. To this price of the ‘pool’ is added the compensation of 53.76 euros/MWh to the gas companies that has to be paid by the consumers who benefit from the measure, the consumers of the regulated rate (PVPC) or those that, despite being on the free market, have an indexed rate.
Effect of the ‘Iberian exception’
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In the absence of the ‘Iberian exception’ mechanism to cap the price of gas for electricity generation, the price of electricity in Spain would be on average around 296.13 euros/MWh, which is around 54 euros/MWh more than with the compensation for customers of the regulated rate, who will thus pay 18.1% less on average. The ‘Iberian mechanism’, which came into force last June, 15limits the price of gas for electricity generation to an average of 48.8 euros per MWh over a twelve-month period, thus covering the coming winter, a period in which energy prices are more expensive.
Specifically, the ‘Iberian exception’ sets a path for natural gas for electricity generation at a price of 40 euros/MWh in the initial six months, and subsequently, a monthly increase of five euros/MWh until the end of the measure . The Government estimates that the ‘Iberian exception’ has meant a saving of more than 2,000 million euros for Spanish consumers since its entry into force until the end of this month of August.