The average price of the light for regulated rate customers linked to the market wholesaler will go up this monday one 25,9% with respect to Sunday, until 242,29 euros per megawatt hour (MWh), according to provisional data from the Iberian Energy Market Operator (OMIE) collected by Europa Press.
In this way, the price goes up again after four consecutive days of fallsalthough it still remains far from the peak levels of the beginning of last week, when on Wednesday it reached 476.39 euros/MWh on average, the highest value since the entry into force of theIberian exception‘ and the second highest price in history for regulated tariff customers linked to the wholesale market, only behind the record of 544.98 euros/MWh recorded on March 8before the application of the ‘gas limit’.
This price is the result of adding the average of the auction in the wholesale market to the compensation that the demand will pay to the central combined cycle for the application of the ‘Iberian exception’ to meet the price of gas for the generation of electricity.
In the auction, the average price of light in the wholesale market – the so-called ‘pool‘ – is set for this Monday at 188.53 euros/MWh. The maximum price will be recorded between 21.00 and 22.00, with 277 euros/MWh, while the minimum for the day, of 121.19 euros/MWh, will be between 4.00 and 5.00 p.m. To this ‘pool’ price is added the compensation of 53.76 euros/MWh to the gas companies that must be paid by the consumers who benefit from the measure, the consumers of the regulated tariff (PVPC) or those that, despite being on the free market, have an indexed rate.
Effect of the ‘Iberian exception’
In the absence of the mechanism of the ‘Iberian exception’ to curb the price of gas for electricity generation, the price of electricity in Spain would be on average about 296.13 euros/MWh, which means about 54 euros /MWh more than with the compensation for regulated tariff customers, who will thus pay 18.1% less on average. The Iberian mechanism, which entered into force on June 15limits the price of gas for electricity generation to an average of 48.8 euros per MWh over a period of 12 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 the generation of electricity at a price of 40 euros/MWh for the initial six months, and subsequently, a monthly increase of 5 euros/MWh until finish the measurement The Government estimates that the ‘Iberian exception’ has meant a saving of more than 2,000 million euros for Spanish consumers since it came into force until the end of this month of August.