The average electricity price for regulated rate customers linked to the wholesale market will drop this Tuesday a slight 0.43% compared to Monday, up to 213.83 euros per megawatt hour (MWh), according to provisional data from the Iberian Energy Market Operator (OMIE). This price for PVPC customers 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 electricity generation.
In the auction, the average price of electricity in the wholesale market – the so-called ‘pool’ – stands for this Tuesday at 142.35 euros/MWh. To this price of the ‘pool’ is added the compensation of 71.48 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, they have an indexed rate.
The price maximum will be recorded between 10:00 p.m. and 11:00 p.m. with 182.49 euros/MWh, while the minimum for the day, of 118.49 euros/MWh, has occurred between the 03:00 a.m. and 04:00 a.m..
19.93% less than without applying the measure
In the absence of the ‘Iberian exception’ mechanism to cap the price of gas for electricity generation, the price of electricity in Spain would have been an average of around 267.06 euros/MWh, which represents 53.23 euros/ MWh more than with the compensation for clients of the regulated rate, who will thus pay around 19.93% less on average.
Compared to a year ago, the price of electricity for customers of the regulated rate for this Tuesday is 116.42% more compared to 98.8 euros/MWh on July 19, 2021.
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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