By Chris King • 18 June 2022 • 20:08
Image of electricity meters.
Credit: Creative Commons
The average price of electricity for regulated rate customers linked to the wholesale market in Spain and Portugal will fall 16.2 per cent this Sunday compared to today, Saturday, June 18.
Of course, we should bear in mind that this decrease coincides with the drop in demand for the weekend and with the impending end of the heat wave.
This price for PVPC customers is the result of adding the average price of the auction in the wholesale market and the compensation that the demand will pay to the combined cycle plants for the application of the ‘Iberian exception’, designed to cap the price of gas for the generation of electricity.
Using this system, the final megawatt-hour cost of electricity to the consumer will be €177.64/MWh, after the compensation of€55.03/MWh to gas companies is added to the pool price. This is compared to the €65.48/MWh yesterday, Friday, June 17.
This compensation must be paid by the consumers who benefit from the measure. These include the consumers of the regulated rate (PVPC), or those who, despite being in the free market, have an indexed rate.
According to data from the Iberian Energy Market Operator (OMIE), in the auction, the average price of electricity in the wholesale market – the so-called ‘pool’ – stands at €122.61/MWh for tomorrow, Sunday, June 19. That is €23.93/MWh less than yesterday’s price of €146 .54/MWh), a drop of 16.33 per cent.
Sunday’s maximum price will be registered between 10pm and 11pm, at €250/MWh, while the minimum for the day, of €50/MWh, will be between 4pm and 5pm.
Compared to last year, prices have skyrocketed. On the same day in 2021, electricity was an average of €87.22/MWh in the wholesale market, €35.39 less than this year.
In the absence of the ‘Iberian exception’ – the correct application of which is being supervised by the National Commission for Markets and Competition (CNMC) – the price of electricity in Spain this Sunday would have averaged around €243/MWh.
That is around €71/MWh more than with the compensation for clients of the regulated tariff, who will thus pay 29 per cent less on average.
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Originally from Wales, Chris spent years on the Costa del Sol before moving to the Algarve where he is a web reporter for The Euro Weekly News covering international and Spanish national news.
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