Price of electricity increases again in Spain and Portugal on Tuesday, August 2

The average price of electricity increases by 11.3 per cent on Tuesday, August 2, in Spain and Portugal.

The average price of electricity this Tuesday, August 2, for regulated rate customers linked to the wholesale market in Spain and Portugal will rise by 11.3 per cent compared to today, Monday, August 1. Specifically, it will stand at €261.95/MWh.

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 will stand at €151.29/MWh. 

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.

Tuesday’s maximum price will be registered from 10pm to 11pm, at €180/MWh, while the minimum for the day, of €129/MWh, will be between midday and 1pm.

To this price of the ‘pool’ must be added the compensation of €110.66/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 cap the price of gas for the generation of electricity, the price of electricity in Spain would be on average around €307.34/MWh. That is around €45.39/MWh more than with the compensation for clients of the regulated tariff, who will pay around 14.7 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.

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.

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