2023-10-15 17:03:23
The war between Hamas and Israel It is already being felt in energy markets around the world. Natural gas has accumulated a rise of 44.6% since the Gaza conflict began last Saturday, October 7, and reaches a price of 55.3 euros per megawatt-hour (MWh) in the reference market for Europe, the Dutch TTF. The barrel of Brent oil, for its part, It revalued 7.7% in the last week to 91 dollars per barrel.
The rise in natural gas explains the rise in the price of electricity in recent days to highs not seen since March. The average price of electricity for regulated tariff customers will rise this Monday, October 16, by 6.7% compared to this Sunday, up to 141.05 euros per megawatt hour (MWh). This also means an increase of 42.3% compared to the price paid by consumers on the day the war began99,16 euros/MWh.
By time slots, the maximum price that users will pay this Monday will reach 220 euros/MWh between 7 and 8 p.m.while the minimum price will occur between 4 and 5 hours, with 110.24 euros/MWh, according to provisional data from the Iberian Energy Market Operator (OMIE).
Natural gas is key in the Spanish electricity mix, since it represents around 30% of the energy sources used in Spain to generate electricity between combined cycle plants and cogeneration, where biomass and other renewable sources are also used, according to data from Red Eléctrica de España (REE).
The rise in the price of this raw material comes at a time when Israel has ordered the closure of a natural gas field managed by the American company Chevron on the country’s coast for security reasons. Furthermore, experts add that the rupture of a gas pipeline in Finland, which may not operate until early 2024would have driven such a rally after two weeks of declines.
The ‘Iberian exception’ does not apply
So far in October, the average of the electricity market is around 115.7 euros/MWh, compared to the 143.08 euros/MWh that the pool registered in the same period of October 2022.
Last September it closed with an average of 103.3 euros/MWh, compared to the 141.07 euros/MWh that the pool registered in September 2022, making this month the most expensive since February 2023.
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The so-called ‘Iberian exception’ is in force until December 31 after the agreement reached by Spain and Portugal with the European Commission. However, This mechanism has had no effect on the electricity market since the end of February due to the drop in the price of natural gas below the thresholds set for its application.
To the average price of the ‘pool’ is added the compensation to the gas companies, which has to be paid by the consumers who are beneficiaries of the measure, the consumers of the regulated tariff (PVPC) or those who, despite being in the free market , have an indexed rate, but which is once again at 0 euros/MWh, a situation that has been repeated since last February 27.
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