The price of electricity rises 2% this Sunday, up to 240.45 euros/MWh

Archive – An electrical tower, on November 12, 2021, in Madrid, (Spain). The Consumer Price Index (CPI) rose 1.8% in October in relation to the previous month and its interannual rate shot up to 5.4%, almost 1.5 points above the rate of – Eduardo Parra – Europa Press – Archive

6 (EUROPE PRESS)

The average price of electricity for regulated rate customers linked to the wholesale market will rise 2% this Sunday compared to this Saturday, to 240.45 euros per megawatt hour (MWh), according to provisional data from the Iberian Market Operator of Energy (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’ – stood for this Sunday at 123.98 euros/MWh. The maximum price will be registered between 10:00 p.m. and 11:00 p.m., with 175 euros/MWh, while the minimum for the day, of 72.08 euros/MWh, will be between 11:00 a.m. and 12:00 noon.

To this price of the ‘pool’ is added the compensation of 116.47 euros/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, they have an indexed rate.

12% LESS THAN WITHOUT APPLYING THE MEASURE

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 281.91 euros/MWh, which is around 34 euros/MWh more than with the compensation for clients of the regulated rate, who will thus pay 12% 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 .