The average price of electricity in the wholesale market falls this Sunday, May 1, for the third consecutive day, with a fall of 4.61% compared to this Saturdayand is located at 177 euros per megawatt hour (MWh).
Specifically, the average price of the ‘pool’ for this Sunday will be 177.86 euros/MWh, which means about nine euros less than the 186.45 euros/MWh on average this Saturday, according to data published by the Iberian Energy Market Operator (OMIE) and collected by Europa Press.
The minimum price of luz for this May 1 it will be given between 5:00 p.m. and 6:00 p.m.with 95.05 euros/MWh, while the maximum for the day will be 227 euros/MWh and will be recorded between 9:00 p.m. and 10:00 p.m.
Compared to a year ago, the average price of electricity for this Sunday will be 199.63% more expensive than the 59.36 euros/MWh of May 1, 2021.
The prices of the ‘pool’ have a direct impact on the regulated rate –the so-called PVPC–, to which almost 11 million households in the country are covered, and serve as a reference for the other 17 million who have contracted their supply in the free market.
In fact, the National Commission of Markets and Competition (CNMC) has verified that in 2021, in the framework of the upward spiral of energy, around 1.25 million people switched from the PVPC to a rate in the free market at a fixed price.
The ‘Iberian exception
Last Tuesday the governments of Spain and Portugal signed an agreement with the European Commission to cap the price of gas in the wholesale market of electricity in the Iberian Peninsula, which will stand at an average of 50 euros/MWh in the next twelve months.
Pursuant to the agreement reached with the Community Executive, the gas reference price will initially be set at around 40 euros/MWh and will mark an average price of 50 euros/MWh over the 12 months that it is in force, which is 20 euros more than the 30-euro ceiling proposed by Spain and Portugal.
Also, on March 29, government approved a national plan to deal with the impact of war in ukraine which includes, among other measures, the extension of the tax reduction on the taxes levied on the electricity bill until June 30, as well as the extension of the electricity social bond to reach 1.9 million beneficiary households.
An early and extraordinary update of the regulated remuneration regime for renewables, cogeneration and waste (Recore) was also adopted with an adjustment of 1,800 million euros with which the charges on the electricity bill are lowered.
Another of the measures agreed by the Executive was an extension until June 30 of the reduction in gas to reduce extraordinary profits in the electricity market, expanding its scope of application to energy contracted on a term basis and at a fixed price from the entry of the norm if said price is higher than 67 euros/MWh.