Price of electricity in Spain and Portugal drops slightly on Wednesday, June 1

The price of electricity in Spain and Portugal drops slightly by 1.58 per cent on Wednesday, June 1.

The average price of electricity in the wholesale market in Spain and Portugal will drop 1.58 per cent this Wednesday, June 1, compared to this Tuesday, May 31.  This means that the price remains above the level of €200/MWh for the third consecutive day.

According to data published by the Iberian Energy Market Operator (OMIE), and collected by Europa Press, specifically, the average price this Wednesday will stand at €210.45/MWh, about three euros cheaper than today’s €213.82/MWh.

Wednesday’s maximum price on the first day of June will be registered between 9pm and 10pm, at €262.60/MWh, while the minimum for the day, of €171.1 euros/MWh, will take place between 4pm and 5pm. Compared to a year ago, the average price this Wednesday will be 143.13 per cent more expensive than the €86.56/MWh of June 1, 2021.

These prices of the ‘pool’ have a direct impact on the regulated rate – the so-called PVPC –  to which almost 11 million households in the country are subscribed, and serve as a reference for the other 17 million who have contracted their supply in the free market.

In fact, the National Commission of Markets and Competition (CNMC) has verified that in 2021, around 1.25 million people switched from the PVPC to a rate in the free market at a fixed price.

On May 14, the Official State Gazette (BOE) published the Royal Decree-Law establishing the mechanism to limit the price of gas for electricity generation to an average of €48.80/MWh, for a period of twelve months.

However, this mechanism, despite its publication as a Royal Decree-Law, is pending a formal decision from Brussels and has yet to be initialled by an Ecological Transition order for its application. The Minister of Industry, Reyes Maroto, anticipates that Brussels will give its approval this week.

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