Electricity price today: these are the cheapest time slots

Electricity price today: these are the cheapest time slots

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The average price of electricity For regulated rate customers linked to the wholesale market, it will drop 3.47% this Friday compared to yesterday, Thursday, to 300.34 euros per megawatt hour (MWh), according to provisional data from the Iberian Energy Market Operator (OMIE). ) collected by Europa Press.

Despite this new decrease, the price of electricity for regulated rate customers linked to the wholesale market will remain the same for the fifth consecutive day above 300 euros/MWh, orA figure that had not been reached since last March, a month in which the record for the historical series was recorded and which took place on March 8 with 544.98 euros/MWh.

This week’s high prices are explained in part by the heat wave that affects the entire country, which implies a higher demand and a lower contribution from renewable sources (wind and photovoltaic).

Added to this are the tensions in the supply of gas in the context of the Russian invasion of Ukraine and the maintenance work on key infrastructures, factors that have boosted the Dutch TTF market (a reference for Europe in the price of this raw material). until reaching above 170 euros/MWh, when in mid-June it was around 80 euros/MWh.

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 at 147.25 euros/MWh for this Friday, which is around 14.97 euros less than the price for yesterday (162.22 euros/MWh).

The maximum price of electricity for this Friday will be registered at 10:00 p.m., with 184.01 euros/MWh, while the minimum for the day, of 126 euros/MWh, will be given at 12:00 p.m.

To this price of the ‘pool’ is added the compensation of 153.09 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.

11.67% 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 339.85 euros/MWh, which is around 39.5 euros/ MWh more than with the compensation for clients of the regulated rate, who will thus pay around 11.6% less on average.

Compared to a year ago, the price of electricity for customers of the regulated rate for this Friday is 244% more compared to 87.18 euros/MWh on July 15, 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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MARCH, THE MOST EXPENSIVE MONTH IN HISTORY

On February 24, when the Russian invasion of Ukraine began, the wholesale market price was 205.6 euros/MWh and, since then, there has been a daily rise in the price that reached its peak on March 8, when the price stood at the absolute record of 544.98 euros/MWh.

In this context, the average price of the wholesale market in March was around 283.30 euros/MWh, some 55 euros more than the average for December 2021, which had been until then the most expensive month in history with 239 euros/ MWh.

Wholesalers have a direct impact on the regulated tariff or PVPC, to which almost 11 million consumers in Spain are covered, and serve as a reference for the other 17 million who contract their supply on the free market.

The military conflict between Ukraine and Russia could cause an even higher rise in energy prices in the coming weeks, especially in the case of gas, due to the risk that Russian imports to Europe will be slowed down by the sanctions imposed by the European Union.

To cushion the impact that the rise in electricity prices is having on consumers, the Government has extended the tax reduction on taxes levied on electricity bills until June 30.

The escalation of prices that affects a large part of Europe is due, among other factors, to the higher cost of gas in international markets, which is used in combined cycle plants and sets the market price in most hours, and the increase in the value of carbon dioxide (CO2) emission rights.

To cushion the impact that the rise in electricity prices is having on consumers, the Government has extended the tax reduction on taxes levied on electricity bills during the first four months.

The escalation of prices that affects a large part of Europe is due, among other factors, to the higher cost of gas in international markets, which is used in combined cycle plants and sets the market price in most hours, and the increase in the value of carbon dioxide (CO2) emission rights.

The military conflict between the two ex-Soviet countries could cause an even higher rise in energy prices in the coming weeks, especially in the case of gas, due to the risk that Russian imports to Europe will be slowed down by the sanctions imposed by the European Union.

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