Business The price of electricity falls 3.9% this Thursday, to 253.77 euros/MWh

The price of electricity falls 3.9% this Thursday, to 253.77 euros/MWh

Archive – An electrical tower, on November 12, 2021, in Madrid, (Spain). The Consumer Price Index (CPI) rose 1.8% in October in relation to the previous month and its interannual rate shot up to 5.4%, almost 1.5 points above the rate of – Eduardo Parra – Europa Press – Archive

The average price of electricity for regulated rate customers linked to the wholesale market will fall 3.9% on Thursday compared to yesterday, Wednesday, to 253.77 euros per megawatt hour (MWh), according to provisional data from the Operator of the Iberian Energy Market (OMIE) collected by Europa Press.

In this way, after three days of increases so far this week, the price of electricity will cut this Thursday with the upward trend of recent days.

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 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’ – stood for this Thursday at 147.23 euros/MWh. The maximum price will be recorded from 1:00 a.m. to 2:00 a.m., with 170 euros/MWh, while the minimum for the day, of 124.99 euros/MWh, will be between 7:00 p.m. and 8:00 p.m.

To this price of the ‘pool’ is added the compensation of 106.54 euros/MWh to the gas companies that has to be paid by the consumers who benefit from the measure, the consumers of the regulated tariff (PVPC) or those who, despite being in the free market, they have an indexed rate.

In the absence of the ‘Iberian exception’ mechanism to limit the price of gas for the generation of electricity, the price of electricity in Spain would be on average around 308.24 euros/MWh, which is around 54.47 euros/MWh more than with the compensation for clients of the regulated rate, who will thus pay around 17.6% 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 .



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