The average price of electricity for regulated rate customers linked to the wholesale market will drop this Sunday by 53.69% compared to this Saturday, to settle at an average of 15.74 euros per megawatt hour (MWh), the highest figure. low registered since last January 17, when it stood at 5.1 euros per megawatt hour (MWh).
During the day on Sunday between 12 and 18 hours the cost will be practically 0 euros after the auction held today in the wholesale market. Between 12 noon and 2 p.m., the fixed cost is 0.1 euros/MWh while from 2 p.m. to 6 p.m., the cost in those four hours will be 0 euros/MWh. While the maximum price will be registered between ten and eleven at night, with 50 euros/MWh.
However, the fact that the price marked at auction is zero euros does not mean that nothing will be paid on the invoice this Sunday. In the regulated tariff, which has 10 million customers, other costs are added to the price of electricity, such as tolls, premiums for renewables, financing of system operators or the system deficit, among others. Outside the regulated rate or PVPC (Small Consumer Sale Price) there are another 20 million customers who have contracted a fixed annual rate in the free market and are not affected by it.
The price of electricity at the auction has fallen due to greater renewable production (the strong winds these days have boosted wind power) and the drop in the price of gas.
Compensation for gas companies would be added to the pool price, which must be paid by consumers who are beneficiaries of the measure, consumers of the regulated tariff (PVPC) or those who, despite being on the free market, have an indexed rate, but for this Sunday it will again be at 0 euros/MWh, a situation that has been repeated since February 27.
The Council of Ministers approved last Tuesday the extension of the Iberian exception until December 31, after the agreement reached by Spain and Portugal with the European Commission. Consequently, it is extended for seven months, until December 31, and it is not excluded that it could be extended for a longer time if said framework is also extended. Specifically, the agreement not only represents an extension of the Iberian exception that was already applied, but also implies some adjustments to accommodate it, such as the price reference, which until now increased by five euros per month, and will now be smoother.
In the original agreement, the aforementioned reference price for gas had an average value of 48.8 euros/MWh: it was 40 euros/MWh for six months, rising 5 euros/MWh each month thereafter. At the moment, the reference price is 55 euros/MWh and the extension of the system implies a modification of the established path, so that it will increase 1.1 euros/MWh from April, ending at 65 euros/MW.
Due to the drop in the price of natural gas below the limits established to apply the mechanism, this has been without effect since the end of February.