The average price of electricity for regulated rate customers linked to the wholesale market will rise this Monday to 136.74 euros per megawatt hour (MWh)which means 103.42% more compared to 67.22 euros/MWh on Sunday, and the highest price registered since last January 3.
In the auction, the average price of electricity in the wholesale market -the so-called ‘pool’- will stand on Monday at 135.37 euros/MWh. The minimal priceof 90 euros/MWh, will be given between 04:00 and 05:00, while the Maximum price will be recorded between 7:00 p.m. and 8:00 p.m., when it will be 220 euros/MWhinforma Europa Press.
Compensation for gas companies is added to this pool price, which must be paid by consumers who are beneficiaries of the measure, consumers of the regulated tariff (PVPC) or those who, despite being on the free market, They have an indexed rate, which for this Monday will be at 1.37 euros/MWh.
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 around 149.62 euros/MWh on average, which means 12.88 euros/MWh more than with the compensation for regulated rate customers, who will thus pay 8.61% 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 for a period of twelve months, thus covering next winter, a period in which energy prices are more expensive.
Extension of the Iberian exception
The Spanish Executive wants to extend the ‘Iberian exception’ at least until the end of 2024 with a cap similar to the current one, of between 45 and 50 euros per megawatt hour (MWh) and has requested this from Brussels.
However, the European Comission has transferred to Spain and Portugal that the extension of the ‘Iberian exception’ cannot go beyond December 2023the date on which the time frame of support initiatives for the war of UkraineTherefore, as long as the European Union (EU) does not modify it, the extension of the mechanism must abide by it.
The Third Vice President and Minister of Ecological Transition, Teresa Riberahas explained that in the event of such a scenario, there is the possibility that the temporary framework of aid for the Ukrainian war will be extended and also allow an extension of the Iberian solution beyond December.
It is also possible that the ‘Iberian exception’ will cease to be necessary if during the Spanish Presidency of the Council, from July to December 2023, the electricity market reformfor which the Spanish Government has already sent its proposal.
