By Chris King • 31 July 2022 • 5:10
Image of electricity pylons.
The average price of electricity for regulated rate customers linked to the wholesale market in Spain and Portugal will drop substantially today, Sunday, July 31, by 11.9 per cent, compared to Saturday, July 30. Specifically, it stands at €198.03/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 €113.09/MWh
Today’s maximum price will be registered between the hours of 10pm and 11pm, at €183.03/MWH, while the minimum for the day, of €80/MWh, will be between 10am and 11am.
To this price of the ‘pool’ must be added the compensation of €84.94/MWh to the gas companies that has to be paid by the consumers who are beneficiaries of 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’ mechanism to cap the price of gas for electricity generation, the price of electricity in Spain would be on average around €252.11/MWh. That is around €54/MWh more than with the compensation for clients of the regulated rate, who will pay around 21.4 per cent less on average.
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, designed to cover the winter months, 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 for the first six months, and subsequently, a monthly increase of five euros until the end of the measure.
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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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