Oct. 15 () –
The average price of electricity for regulated rate customers linked to the wholesale market drops 23% this Saturday compared to this Friday, to 157.22 euros/MWh, according to provisional data from the Iberian Energy Market Operator (OMIE). ) collected by Europa Press.
This price is the result of adding the average 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.
In the auction, the average price of electricity in the wholesale market – the so-called ‘pool’ – stands at 115.73 euros/MWh for this Saturday. The maximum price will be registered between 9:00 p.m. and 10:00 p.m., with 167.76 euros/MWh, while the minimum for the day, of 58.40 euros/MWh, will occur between 4:00 p.m. and 6:00 p.m.
To this price of the ‘pool’ is added the compensation of 41.49 euros/MWh to the gas companies that has to be paid by the consumers who are beneficiaries of the measure, the consumers of the regulated rate (PVPC) or those who, despite being in the free market, they have an indexed rate.
In this way, the price for regulated rate customers linked to the wholesale market will record its lowest level so far in October.
6.7% LESS THAN WITHOUT APPLYING THE MEASURE
Specifically, if this mechanism were not applied to cap the price of gas for electricity generation, the price of electricity in Spain would be an average of 168.64 euros/MWh, which is 11.4 euros/MWh more than with the compensation for customers of the regulated rate, who will thus pay 6.7% 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 48.8 euros per MWh over a period of twelve months, thus covering the coming winter, a period in which which energy prices are more expensive.
Specifically, the ‘Iberian exception’ sets a path for natural gas for electricity generation at a price of 40 euros/MWh in the initial six months, and subsequently, a monthly increase of five euros/MWh until the end of the measure .
The Ministry for the Ecological Transition and the Demographic Challenge has released to public information a proposal for a Royal Decree to reduce the volatility of the regulated rate, the so-called PVPC, in order to provide greater stability to a rate that has been particularly impacted due to the volatility of the electricity market in the last year, giving greater weight to references to futures markets, which will grow progressively until they represent 55% in 2025.
The proposal proposes incorporating into the PVPC calculation formula -contracted by the holders of some nine million supply points, 35% of the country- a basket of medium and long-term prices to avoid strong fluctuations, without losing references short-term prices that encourage saving and efficient consumption.
