The price of electricity falls slightly on Wednesday.
The price of electricity for regulated rate customers will experience a slight decrease this Wednesday of 2.23%, to 226.57 euros/MWh. Check the price of electricity hour by hour this July 6
The price of electricity will experience a slight decrease for the second consecutive day, which will be a relief for households. In recent months, consumers have seen how their bill has not stopped growing, so any downward fluctuation is a respite, especially if it is used to put the highest consumption appliances in the hours in which the price of the light is cheaper.
The amount of electricity for regulated rate customers linked to the wholesale market will drop specifically this Wednesday by 2.23% compared to the previous day, to 226.57 euros per megawatt hour (MWh), according to provisional data from the Operator of the Iberian Energy Market (OMIE).
This price for PVPC customers is the result of adding the average price of the auction in the wholesale market to the compensation that the demand will pay to the combined cycle plants for the application of the ‘Iberian exception’ to cap the price of gas for electricity generation.
In the auction, the average electricity price in the wholesale market -the so-called ‘pool’- will stand at 145.3 euros/MWh this Wednesday, which is 6.14 euros more than the price for this Tuesday (139 .16 euros/MWh).
The maximum price of electricity for this July 6 will be registered between 9:00 p.m. and 10:00 p.m., with 174.5 euros/MWh, while the minimum for the day, of 115.55 euros/MWh, will be between 03:00 and 04.00 hours.
Cheapest and most expensive hours to put the appliances
cheapest hour
from 03:00 to 04:00, with 115.55 euros/MWhmost expensive hour
from 9:00 p.m. to 10:00 p.m., with 174.5 euros/MWh
To this price of the ‘pool’ is added the compensation of 81.27 euros/MWh to the gas companies (a figure that is still provisional and that usually varies compared to the definitive one and affects the percentage variations of the price), compared to 92, 58 euros/MWh registered for this Tuesday. This compensation must be paid by the consumers who benefit from the measure, the consumers of the regulated rate (PVPC) or those who, despite being in the free market, have an indexed rate.
31.55% less than without applying the measure
In the absence of the ‘Iberian exception’ mechanism to cap the price of gas for electricity generation, the price of electricity in Spain would have been on average around 330.99 euros/MWh, which is around 40.88 euros/ MWh more than with the compensation for clients of the regulated rate, who will thus pay around 31.55% less on average.
Compared to a year ago, the price of electricity today for regulated rate customers is 142.14% more compared to 93.57 euros/MWh on July 6, 2021.
The Iberian mechanism, which entered into force on June 15, limits the price of gas for electricity generation to an average of 48.8 euros per MWh over a period of twelve months, 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 .
“It will lower the bill for July”
The Government limited in its calculations to 15.3% the reduction in the receipt to the average electricity consumer covered by the PVPC regulated rate during the 12 months of application of the approved cap on the generation of electricity from natural gas, according to evidence in the impact report that accompanies the decree law.
For the industrial consumer, totally exposed to the ‘spot’ price, the Government estimated a reduction of between 18% and 20%, with the first month of the mechanism oscillating between 15% and 17%, and between 13% and 15% at last.
The third vice president and minister for the Ecological Transition and the Demographic Challenge, Teresa Ribera, affirmed this Tuesday that consumers will begin to notice the drop in their electricity bill derived from the measures adopted by the Government, such as the reduction of the load tax and the cap on gas for electricity generation, in the July bill.
«The first receipt that will arrive at our homes since the increase in the tax reduction and since the creation of the gas cap will be in July. I am talking about a relative reduction, with what it would have been in the absence of these measures. In absolute terms, a smaller reduction can be produced for those who have a PVPC rate (from the regulated market) and a more important reduction for those who have a rate in the free market”, he asserted in an interview on Telecinco collected by Europa Press.
Evolution of the electricity tariff (in euros / MWh.):
Price July 6, Wednesday:
226,57 euros/MWhPrice July 5, Tuesday:
231,74 euros / MWh.Price July 4, Monday:
254,97 euros / MWh.Price July 3, Sunday:
207,77 euros / MWh.Price July 2, Saturday:
228,43 euros / MWh.Price July 1, Friday:
222,27 euros / MWh.Price June 30, Thursday:
193,01 euros / MWh.Price June 29, Wednesday:
218,55 euros / MWh.Price June 28, Tuesday:
261,15 euros / MWh.Price June 27, Monday:
188,78 euros/MWh
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.