2023-06-24 17:07:26
The cost of energy will return to 0 euros between three and four in the afternoon tomorrow Sunday. The average price of electricity for regulated rate customers linked to the wholesale market will drop by 12.23% compared to today, Saturday, to 72.27 euros per megawatt hour (MWh), according to the results of the auction held today in the wholesale market. However, between 3:00 p.m. and 4:00 p.m. it will be 0 euros/MWh, although between 10:00 p.m. and 11:00 p.m. it will shoot up to 127.59 euros/MWh.
The price of electricity will remain contained for a large part of Sunday and, in fact, from ten in the morning to six in the evening it will cost, on average, less than 10 euros/MWh. This drop in prices is quite common on weekends due to the drop in demand due to the drop in activity.
Fixed costs
The fact that energy can become costless does not imply, in any case, that the electricity bill can become completely free, since fixed or regulated energy costs will always have to be paid. These regulated costs represent between 55% and 60% of the total value of the invoice and are identical for all users who have an electricity contract. Among these charges are the contracted power, which is the price we pay for the power we contract and that can be used; the access toll, the rental of equipment, which basically affects the electricity meter; incentives for renewable energy and remuneration for Red Eléctrica de España and OMIE. In addition, also other costs such as the tariff deficit, which has been paid to the electric companies for years to compensate for energy that they sold below its cost.
So far in June, the average for the electricity “pool” stands at 91.7 euros/MWh, compared to the 176.72 euros/MWh set in June a year ago, which represents a decrease of 67%. Compensation for gas companies would be added to this average pool price, which must be paid by consumers who are beneficiaries of the measure, consumers of the regulated tariff (PVPC) or those who, despite being on the free market , have an indexed rate, but which is again at 0 euros/MWh, a situation that has been repeated since February 27.
Iberian exception
The so-called “Iberian exception” has been extended until December 31, after the agreement reached by Spain and Portugal with the European Commission. Thus, it is extended for seven months, until the end of this year, and it is not excluded that it could be extended for a longer time if said framework is also extended. Specifically, the agreement not only represents an extension of the Iberian exception that was already applied, but also implies some adjustments to accommodate it, such as the price reference, which until now increased by five euros per month, and will now be smoother.
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 5 euros/MWh each month thereafter. Now, it will increase by 1.1 euros/MWh from last April, to conclude at 65 euros/MWh.
Currently, the mechanism has had no 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 maintain a reasonable price, not so dependent on the evolution of natural gas.
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