The electricity price For regulated rate customers linked to the wholesale market, it will rise 12.25% this Saturday compared to Friday, to 259.57 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- will be 148.62 euros/MWh this Saturday, which is 1.89 euros more than the price for this Friday (146.73 euro/MWh).
The maximum price of electricity for this July 9 will be registered between 10:00 p.m. and 11:00 p.m., with 148.62.12 euros/MWh, while the minimum for the day, of 129.5 euros/MWh, will be given between 4:00 p.m. and 6:00 p.m.
To this pool price is added the compensation of 110.95 euros/MWh to the gas companies (a figure that is still provisional and that usually varies compared to the definitive one and affects the percentage variations of the price), compared to 84.52 euros /MWh registered for this Thursday. This compensation must 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, have an indexed rate.
price without 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 348.95 euros/MWh, which is around 89.27 euros/ MWh more than with the compensation for clients of the regulated rate, who will thus pay around 25.61% less on average. In fact, without the application of the mechanism, this Saturday’s price would have been the ninth highest in the historical series.
Compared to a year ago, the price of electricity for customers of the regulated rate for this Saturday is 177.61% more compared to 93.5 euros/MWh on July 8, 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 .
bill for july
The Government limited in its calculations to 15.3% the reduction in the receipt to the average electricity consumer covered by the PVPC regulated rate during the 12 months of application of the approved cap on the generation of electricity from natural gas, according to evidence in the impact report that accompanies the decree law and to which Europa Press has had access.
For the industrial consumer, fully exposed to the spot price, the Government estimated a reduction of between 18% and 20%, with the first month of the mechanism oscillating between 15% and 17%, and between 13% and 15%. in the last.
The Third Vice President and Minister for the Ecological Transition and the Demographic Challenge, Theresa Riverastated last Tuesday that consumers will begin to notice the drop in the electricity bill derived from the measures adopted by the Government, such as the reduction of the tax burden and the cap on gas for electricity generation, in the receipt of July.
«The first receipt that will arrive at our homes since the increase in the tax reduction and since the creation of the gas cap will be in July. I am talking about a relative reduction, with what it would have been in the absence of these measures. In absolute terms, a smaller reduction can be produced for those who have a PVPC rate (from the regulated market) and a more important reduction for those who have a rate in the free market,” Ribera asserted.