Price of electricity in Spain and Portugal rises minimally on Wednesday, August 3

The price of electricity will increase minimally on Wednesday, August 3, in Spain and Portugal.

The average price of electricity this Wednesday, August 3, for regulated rate customers linked to the wholesale market in Spain and Portugal will rise by 0.82 per cent compared to this Tuesday, August 2. Specifically, it will stand at €264.10((/MWh.

According to provisional data of the Iberian Energy Market Operator (OMIE), in the auction, the average price of electricity in the wholesale market – the so-called ‘pool’ – stands tomorrow at €147.85/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 ‘Iberianexception’ to cap the price of gas for the generation of electricity. 

Wednesday’s maximum price will be registered from 10pm to 11pm at €176/MWh, while the minimum for the day, of €126/MWh, will be between 5pm and 6pm.

To this price of the ‘pool’ must be added the compensation of €116.25/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 electricity generation, the price of electricity in Spain would be on average around €307.18/MWh. That would be around €43/MWh more than with the compensation for clients of the regulated rate, who will pay around 14 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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