The average price of electricity for regulated rate customers linked to the wholesale market will drop 0.92% this Sunday compared to this Saturday, until the 382.31 euros per megawatt hour (MWh), according to provisional data from the Iberian Energy Market Operator (OMIE).
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 electricity generation.
In this way, the price will fall slightly again and remains far from the maximum since the entry into force of this mechanism that marked last Tuesday and Wednesday, when it climbed to 436.25 euros/MWh.
In the auction, the average price of electricity in the wholesale market -the so-called pool- has been set for this Sunday at 138.74 euros/MWh. The maximum price will be registered between 10:00 p.m. and 11:00 p.m., with 225 euros/MWh, while the minimum for the day, of 57.91 euros/MWh, will be between 11:00 a.m. and 12:00 noon.
At this price is added the compensation of 243.57 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, have an indexed rate.
This spiral of high electricity prices that has occurred throughout this week has been driven by natural gas price levels at maximum levels, mainly due to Gazprom’s announcement to cut from August 31 and for three days pumping gas to Germany.
without gas cap
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 460.76 euros/MWh, which is around 78.45 euros/MWh more than with the compensation for clients of the regulated rate, who will thus pay 17% less on average.
The ‘Iberian mechanism’, which came into force last June 15limits the price of gas for electricity generation to an average of 48.8 euros per MWh over a twelve-month period, thus covering the coming winter, a period in which energy prices are more expensive.
Specifically, this mechanism 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 5 euros/MWh until the end of the measure.