Average price of electricity hits new LOW in Spain on Tuesday, January 17

On Tuesday, January 17, the average price of electricity in Spain drops by 61.74 per cent.

The average price of electricity for regulated rate customers linked to the wholesale market in Spain will plummet by 61.47 per cent this Tuesday, January 17, compared to today, January 16. Specifically, it will stand at €4.48/MWh. This represents the lowest level so far in 2023.

According to provisional data from the Iberian Energy Market Operator (OMIE), in the auction, the average price of electricity in the wholesale market – the so-called ‘pool’ – will stand at €5.10/MWh tomorrow.

Tuesday’s minimum price of €0.65/MWh will occur between 4am and 5am, while the maximum price will be between 8pm and 9pm, when it will be €17.50/MWh.

Compensation for gas companies of €-0.62/MWh is added to this pool price. It must be paid by consumers who are beneficiaries of the measure, consumers of the regulated tariff (PVPC), or those who, despite being on the free market, have an indexed rate.

Calculating the average price of electricity for regulated rate customers linked to the wholesale market between January 1 and 17, 2023, it stands at €71.32/MWh. In the same period of 2022, it was €190.40/MWh, almost three times more expensive.

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 around €32.03/MWh on average. That would be €27.55/MWh more than with the compensation for regulated rate customers, who will end up paying pay 86.01 per cent less on average as a result.

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