By Chris King • 18 July 2022 • 0:21
Image of electricity pylons.
The average price of electricity for regulated rate customers linked to the wholesale market in Spain and Portugal will drop this Monday by around 6 per cent compared to today, Sunday, July 17. Specifically, it will stand at €214.75/MWh. This is the third consecutive day of a decrease in energy costs.
According to provisional data from the Operator of the Iberian Energy Market (OMIE), in the auction, the average price of electricity in the wholesale market – the so-called ‘pool’- tomorrow, stands at €115.77/MWh.
Monday’s maximum price will be registered between 8am and 9am, at €150/MWh, while the minimum for the day, of €91.27 euros, will be between 5pm and 6pm.
To this price of the ‘pool’ must be added the compensation of €98.98/MWh payable to the gas companies by the consumers who benefit from the measure, the consumers of the regulated tariff (PVPC), or those who, despite being in the free market, they have an indexed rate.
In comparison, tomorrow’s average electricity price will be a lot lower than in other European countries. Germany will have €396.10/MWh, France with €486/MWh, Italy at €462.90/MWh, and the United Kingdom, the equivalent in pounds of€391.90/MWh.
Without the “Iberian exception” mechanism that currently caps the price of gas for electricity generation, the price of electricity in Spain would have been an average of €241.77/MWh. That is around €27/MWh more than with the compensation for customers at the regulated rate.
According to recent calculations made by Europa Press, the Iberian gas cap mechanism – which has been applied in Spain and Portugal since June 15 – has lowered the price of electricity for regulated rate customers linked to the wholesale market by 16.2 per cent in its first month in force.
Between June 15 and July 15 in Spain, the average price for regulated tariff customers resulting from adding the price of the ‘pool’ to the daily compensation for the plants that generate with gas, is €251.26/MWh.
If the measure had not been applied then the average would have been €299.9/MWh, that is, almost €49/MWh more, on average, as reported by larazon.es.
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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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