The average price of electricity for regulated rate customers linked to the wholesale market rose 3.9% this Monday compared to Sunday, to 286.21 euros per megawatt hour (MWh), according to provisional data from the Market Operator Iberian Energy (OMIE) collected by Europa Press.
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.
The price remains far from the maximum levels of last week, when it reached 486.21 euros/MWh on average, the highest value since the entry into force of the ‘Iberian exception’ and the second highest in the history for regulated rate customers linked to the wholesale market, only behind the record of 544.98 euros/MWh registered on March 8, before the application of the ‘gas cap’.
In the auction, the average price of electricity in the wholesale market – the so-called ‘pool’ – will be 175.63 euros/MWh for this Monday. The maximum price will be registered between 9:00 p.m. and 10:00 p.m., with 240.01 euros/MWh, while the minimum for the day, of 135 euros/MWh, will be between 2:00 p.m. and 3:00 p.m.
To this price of the ‘pool’ is added the compensation of 110.58 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 cap the price of gas for electricity generation, the price of electricity in Spain would be on average around 346.05 euros/MWh, which is around 59.8 euros/MWh more than with the compensation for clients of the regulated rate, who will thus pay 17.3% less on average.
The ‘Iberian mechanism’, which came 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 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 .
The Government estimates that the ‘Iberian exception’ has meant a saving of more than 2,000 million euros for Spanish consumers since its entry into force until the end of this month of August.
Source: Europa Press