Electricity will rise on Sunday about 10% until the 194,64 euros the megawatt hour (MWh), its fourth lowest price since the Iberian mechanism came into force on June 15, according to the results of the auction in the wholesale market or ‘pool’ and the adjustment to be paid after the gas cap to compensate the plants.
According to the operator of the electricity market OMIE and the Iberian Gas Market (Mibgas), the wholesale price of electricity (the one paid by consumers with a regulated rate) will be around 54 euro lower compared to the 249.16 euros at which the MWh would have been paid if the cap on gas for electricity generation had not been included.
In a context marked by the energy crisis facing Europe due to the Russian invasion of Ukraine, the President of the European Commission, Ursula von der Leyen, presented this week a legislative proposal to deal with this situation. The Brussels plan will serve to promote a reduction in energy consumption -mandatory at peak hours-, a limit on the remuneration of renewables and nuclear in the wholesale market and a tax on extraordinary profits of companies that use fossil fuels.
In parallel, the Commission is working on a far-reaching reform of the energy market in the longer term to decouple gas-based generation from renewables, which, according to Von der Leyen, will arrive “at the end of this year”.
For Sunday, within the main European economies, the price highest will be recorded again in Italy, where 304.22 euros/MWh will be reached. In the United Kingdom, the MWh will stand at 212.71 pounds/MWh (about 245 euros at the current exchange rate), above the 199.95 euros that will be paid in France. The price lowest will be recorded in Germany, where tomorrow electricity will be at 77.93 euros/MWh, its lowest price since July 16.
In Portugal, where the cap on gas is also applied by virtue of the so-called ‘Iberian exception’, the auction price will be the same as in Spain, a country with which it shares a market.
Auction and adjustment
If only the results of the auction in the wholesale market are taken into account, without including the adjustment that the beneficiaries of the gas cap must pay to compensate the plants that use this material, the electricity will be more than twice as expensive to stand at 131.61 euros/MWh.
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By time slots (excluding the aforementioned adjustment), the price most expensive will be reached between 21:00 and 22:00, with 202.28 euros/MWh; while the cheapest will be registered between 3:00 p.m. and 4:00 p.m., with 61.01 euros.
However, to these amounts must be added the cost of adjusting the gas plants, the amount of which varies depending on the volume required by the system and its price, and affects households and beneficiary companies. For Sunday, the provisional average adjustment for consumers will be 63.03 euros/MWh, with which the final price will be 194.64 euros/MWh, 22% more than a year ago.