The average price of electricity for regulated rate customers linked to the wholesale market It will fall 18.5% this Sunday compared to this Saturday, up to 172.64 euros per megawatt hour (MWh).
This decline coincides with the drop in demand for the weekend and with the end of the heat wave.
This price for PVPC customers is product of adding the average price of the auction in the wholesale market and the compensation that the demand will pay to the combined cycle plants for the application of the ‘Iberian exception’ to limit the price of gas for the generation of electricity.
In this way, the megawatt hour of electricity for the final consumer will cost 172,64 eurosafter the compensation of 50.03 euros to gas companies is added to the pool price, compared to 65.48 euros this Friday.
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.
In the auction, the average price of electricity in the wholesale market -the so-called ‘pool’- stands at 122.61 euros/MWh for this Sundaywhich is 23.93 euros less than yesterday’s price (146.54 euros/MWh), a drop of 16.33%, according to data from the Iberian Energy Market Operator (OMIE) collected by Europa Press.
The maximum price of electricity for this June 19 will be registered between 10:00 p.m. and 11:00 p.m., with 250 euros/MWh, while the minimum for the day, of 50 euros/MWh, will be between 4:00 p.m. and 5:00 p.m. .
Compared to last year, prices have skyrocketed, since eOn the same day in 2021, electricity was paid at 87.22 euros/MWh in the wholesale market, 35.39 euros less that this sunday
29% less than without applying the measure
In the absence of the ‘Iberian exception’ mechanism to limit the price of gas for electricity generation, the correct application of which is being supervised by the National Commission for Markets and Competition (CNMC), the price of electricity in Spain would have been average around 243 euros/MWh, which is around 71 euros/MWh more than with the compensation for clients of the regulated tariff, which they will thus pay 29% less on average.
These prices are being recorded in a context marked these days by the heat wave and the high demandwith a very exceptional participation of gas plants in generation.
In fact, the demand for natural gas for electricity generation is breaking records these days and the price of gas has continued to rise as a result of reduced Russian supplies to the EU.
The Iberian mechanism, which finally received the green light from Brussels last week, limits the price of gas for electricity generation to an average of 48.8 euros per MWh over a twelve-month periodthus covering the next 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 .
An expected discount of 15%
Government limited in its calculations to 15.3% the reduction in the receipt for the average electricity consumer covered by the regulated rate PVPC during the 12 months of application of the cap approved for the generation of electricity from natural gas, as stated in the impact report that accompanies the decree law and to which Europa Press has had access.
For the industrial consumer, totally exposed to the ‘spot’ price, the Government estimated a reduction of between 18% and 20%ranging between 15% and 17% in the first month of the mechanism, and between 13% and 15% in the last.