Price of electricity rises yet again in Spain and Portugal on Sunday, July 10

The price of electricity rises yet again, going up by 11.64 per cent on Sunday, July 10, in Spain and Portugal.

The average price of electricity for regulated rate customers linked to the wholesale market in Spain and Portugal will rise by 11.64 per cent this Sunday, July 10, compared to today, Saturday, July 9. Specifically, it will stand at €289.79/MWh.

According to provisional data from the Market Operator Iberian Energy (OMIE), in the auction, the average price of electricity in the wholesale market – the so-called ‘ pool ‘ – tomorrow stands at €138.62/MWh. That is €10 less than today’s €148,62/MWh).

This price for PVPC customers is the result of adding the average price of the auction in the wholesale market to the compensation payable to the combined cycle plants for the application of the ‘Iberian exception’ to cap the price of gas for electricity generation.

Sunday’s maximum price will occur between 10pm and 11pm, at €184/MWh, while the minimum for the day, of €116.62/MWh, will be between 5pm and 6pm.

To this price of the ‘pool’ is added the compensation of €151.17/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.

In the absence of the ‘Iberian exception’, the price of electricity in Spain and Portugal would have been an average of around €329/MWh, which is around €40/MWh more than with compensation for clients of the regulated tariff, who will pay around 12 per cent less on average.

Compared to a year ago, the price of electricity for customers at the regulated rate this Sunday is 220 per cent more expensive than the €93.50/MWh on July 9, 2021.

The Iberian mechanism, which entered into force on June 15, limits the price of gas for electricity generation to an average of €48.80/MWh over a period of twelve months, 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/MWh in the initial six months, and subsequently, a monthly increase of €5/MWh until the end of the measure.