The average price of electricity for regulated rate customers linked to the wholesale market will rise this Monday, August 1, by 18.8% Regarding this Sunday, up to 235.32 euros per megawatt hour (MWh), according to provisional data from the Iberian Energy Market Operator (OMIE) collected by Europa Press.
This price is the result of adding the average price of the auction in the wholesale market to the compensation that the demand will pay to the combined cycle plants for the application of the ‘Iberian exception’ to cap the price of gas for the generation of electricity .
In the auction, the average price of electricity in the wholesale market -the so-called ‘pool’- stands at 147.43 euros/MWh for this Monday. The maximum price will be registered from 9:00 p.m. to 10:00 p.m., with 165.09 euros/MWh, while the minimum for the day, of 123.72 euros/MWh, will be between 10:00 a.m. and 11:00 a.m.
To this price of the ‘pool’ is added the compensation of 87.89 euros/MWh to the gas companies that has to 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 absence of the ‘Iberian exception’ mechanism to cap the price of gas for electricity generation, the price of electricity in Spain would be on average around 286.19 euros/MWh, which means around 50 euros/MWh more than with the compensation for customers of the regulated rate, who will thus pay around 17.7% less on average.
The Iberian mechanism, which entered into force on June 15, limits the price of gas for electricity generation to an average of 48.8 euros per MWh over a period of twelve 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 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 .