The average price of electricity for regulated rate customers linked to the wholesale market it will fall this Tuesday by 6.95% Compared to yesterday, up to 121.18 euros per megawatt hour (MWh), which will mean a new minimum so far in December.
In the auction, the average price of light in the wholesale market -the so-called ‘pool’- stands for this Tuesday at 97.69 euros/MWh. Thus, the maximum price will be recorded between 4:00 p.m. and 5:00 p.m., with 147 euros/MWh, while a minimum of 4.11 euros/MWh during the first six hours of the day, ifAccording to provisional data from the Iberian Energy Market Operator (OMIE).
These very low prices in the wholesale market for the first hours of the day will be motivated by the high presence of renewables in the ‘mix’, especially wind power, due to the Efraín storm, which brings a strong storm of rain and wind in great part of Spain.
To this ‘pool’ price is added the compensation to the gas companies that 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, which will be 23.49 euros/MWh.
51.42% less than without applying the measure
In the absence of the mechanism of ‘Iberian exception‘ To cap the price of gas for electricity generation, the price of electricity in Spain would be on average around 249.49 euros/MWh, which is 128.31 euros/MWh more than with the compensation for the customers of the regulated rate, which will thus pay 51.42% less on average.
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The ‘Iberian mechanism’, which came into force on June 15, limits the price of gas for electricity generation to an average of 48.8 euros per MWh for a period of twelve months, thus covering next winter, a period in which energy prices are more expensive.
Specifically, the ‘Iberian exception’ sets a path for natural gas for electricity generation from a price of 40 euros/MWh in the initial six months –until December 15–, and subsequently, a monthly increase of five euros/MWh until the end of the measure.