By Chris King • 31 July 2022 • 22:25
Image of electricity pylons.
The average price of electricity for regulated rate customers linked to the wholesale market in Spain and Portugal will increase by 18.8 per cent on Monday, August 1, compared to today, Sunday, July 31. Specifically, it stands at €235.32/MWh, remaining below the €250/MWh mark.
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’ – stands tomorrow at €147.43/MWh.
Monday’s maximum price will be registered from 9pm to 10pm, at €165.09/MWh, while the minimum for the day, of €123.72/MWh, will be between 10am and 11am.
This price is the result of adding the average price of the auction in the wholesale market to the compensation that the demand will pay to the combined cycle plants for the application of the ‘Iberian exception’ to cap the price of gas for the generation of electricity.
To this price of the ‘pool’ must be added the compensation of €87.89/MWh to the gas companies that has to be paid by the consumers who benefit from the measure, the consumers of the regulated tariff (PVPC), or those who, despite being in the free market, have an indexed rate.
In the absence of the ‘Iberian exception’ mechanism to limit the price of gas for electricity generation, the price of electricity in Spain would be on average around €286.19/MWh. That is around €50/MWh more than with the compensation for clients of the regulated rate, who will pay around 17.7 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, covering the coming winter, a period in which energy prices are more expensive.
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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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