Average price of electricity in Spain skyrockets again on Friday, November 4

On Friday, November 4, the average price of electricity in Spain will shoot up by 29.6 per cent.

The average price of electricity for regulated rate customers linked to the wholesale market in Spain will rise by 29.6 per cent on Friday, November 4, compared to this Thursday 3. Specifically, it will stand at €155.82/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’ – will be €150.44/MWh tomorrow.

Friday’s maximum price will be registered between 8pm and 9pm, at €217.74/MWh, while the minimum for the day, of €112.44/MWh, will occur between 3pm and 4pm.

Added to this pool price is the compensation to the gas companies of €5.38/MWh 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 or have to renew their contract.

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 €171.91/MWh. That is around €16/MWh more than with the compensation for clients of the regulated rate, who will subsequently pay 9.36 per cent less on average.

The ‘Iberian mechanism’, which came 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 will normally be more expensive.

Specifically, the ‘Iberian exception’ sets a path for natural gas for electricity generation from a price of €40/MWh in the initial six months – until December 15 – and subsequently, a monthly increase of €5/MWh until the end of the measure.

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