economy and politics

The price of electricity rises this Saturday by 4%, to 86.62 euros/MWh

The price of electricity rises this Saturday by 4%, to 86.62 euros/MWh


The average price of electricity for regulated rate customers linked to the wholesale market will rise this Saturday by 4.10% compared to this Friday, up to 86.62 euros per megawatt hour (MWh).

In the auction, the average price of light in the wholesale market –the so-called ‘pool’– will thus be situated for this Saturday at those 86.62 euros/MWh, registering between 4:00 p.m. and 5:00 p.m. the lowest price of the day, with 10 euros/MWh, while the maximum price will be given between 8:00 p.m. and 9:00 p.m., with 140.21 euros/MWh.

Compensation for gas companies would be added to this pool price, which 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, They have an indexed rate, but for this Saturday it will be again at 0 euros/MWh, a situation that has been repeated since February 27.

The 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 each month thereafter. Now, it will increase by 1.1 euros/MWh from April, to conclude at 65 euros/MW.

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.

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