The price of electricity plummets by more than 30% this Sunday, to 31.52 euros/MWh

May 20. (EUROPE PRESS) –

The average price of electricity for regulated rate customers linked to the wholesale market will fall this Sunday by 30.37% compared to this Saturday, to 31.52 euros per megawatt hour (MWh).

By time slots, the minimum price, of 0 euros/MWh, will be given between 10:00 and 11:00, while the maximum price will be recorded between 9:00 and 10:00 pm, when it will be 91 euros/MWh.

To this average price of the ‘pool’ would be added the compensation to the gas companies, which must be paid by the consumers who are beneficiaries of the measure, the consumers of the regulated tariff (PVPC) or those who, despite being in the free market , have an indexed rate, but for this Sunday it will again be at 0 euros/MWh, a situation that has been repeated since February 27.

The average price of electricity so far in May is slightly above 69 euros/MWh, compared to 189.77 euros/MWh registered in the same period last year.

The so-called ‘Iberian exception’ has been extended until December 31, after the agreement reached by Spain and Portugal with the European Commission. Thus, it is extended for seven months, until the end of this year, and it is not excluded that it could be extended for a longer time if said framework is also extended.

Specifically, the agreement not only represents an extension of the Iberian exception that was already applied, but also implies some adjustments to accommodate it, such as the price reference, which until now increased by five euros per month, and will now be smoother.

In the original agreement, the aforementioned reference price for gas had an average value of 48.8 euros/MWh: it was 40 euros/MWh for six months, rising 5 euros/MWh every month thereafter. Now, it will increase by 1.1 euros/MWh from April, to conclude at 65 euros/MWh. For this month of May, the limit is set at 57.2 euros/MWh.

Currently, the mechanism has had no effect on the marginal matching processes in the wholesale markets since the end of February, due to the drop in the price of natural gas below the thresholds set for its application, but, if necessary, the extension will allow maintain a reasonable price, not so dependent on the evolution of natural gas.