Without the Iberian mechanism, the wholesale price for tomorrow would be 66.6 euros/MWh
The electricity price will drop this Sunday to 35.03 euros per megawatt hour (MWh), which means a decrease of 38% compared to the price of this Saturdayaccording to the results of the auction held in the wholesale market.
The final average price is the result of adding, to the 37.7 euros/MWh of the wholesale market, the provisional adjustment that the beneficiaries have to pay from stop to gas for compensate the centrals that use this matter to generate electricity, which can be negative, like tomorrow, which will be -2.67 euros.
Without the “Iberian mechanism”, which limits the price of natural gas for electricity generation, the wholesale price for tomorrow would be 66.6 euros/MWh, that is, some 31.6 euros higher, according to the data of the Iberian Electricity Market Operator (OMIE) and the Iberian Gas Market (Mibgas). In this calculation, the new gas cap of 45 euros is already applied, which will be in force throughout January.
six month extension
The day before it became known that the European Commission (EC) transferred to Spain and Portugal that a possible extension of six months of the so-called Iberian mechanism (in force until May 31) could not, for the moment, go beyond December of this year.
By time slots, and excluding the adjustment, electricity will reach tomorrow its highest price between 8:00 p.m. and 9:00 p.m.s, at around 129 euros/MWh; and the lowest, between 06:00 and 07:00, when its price will be 11 euros/MWh.
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With this decrease, the price of electricity for tomorrow will be about 82% lower compared to a year agowhen it stood at 190 euros/MWh, and it will be at lower levels than those registered in most neighboring countries, even without the application of the gas cap.
Thus, in France the average price will be 167.6 euros/MWh, in Italy 185.4 euros/MW, in Germany 151.2 euros/MWh and in the United Kingdom 159 pounds/MWh (about 181.1 euro/MWh).