21 Jan. () –
The average price of electricity for regulated rate customers linked to the wholesale market will drop this Sunday to 35.03 euros per megawatt hour (MWh), which represents a decrease of 38.59% compared to 57.04 euros. /MWh of this Saturday.
In the auction, the average price of light in the wholesale market –the so-called ‘pool’– will stand tomorrow at 37.70 euros/MWh. The minimum price, of 11 euros, will be given between 06:00 and 07:00, while the maximum price is registered between 20:00 and 21:00, when it will be 128.97 euros.
Compensation for gas companies is 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, which for this Sunday will be -2.67 euros/MWh.
47% LESS THAN WITHOUT APPLYING THE IBERIAN EXCEPTION
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 66.65 euros/MWh on average, which means 31.62 euros/MWh more than with the compensation for regulated rate customers, who will thus pay 47.44% 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 for a period of twelve months, thus covering next winter, a period in which energy prices are more expensive.
Specifically, the ‘Iberian exception’ sets a path for natural gas for electricity generation from 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 .
EXTENSION OF THE IBERIAN EXCEPTION
The Spanish Executive wants to extend the ‘Iberian exception’ at least until the end of 2024 with a cap similar to the current one, of between 45 and 50 euros per megawatt hour (MWh) and has transferred it to Brussels.
However, the European Commission has informed Spain and Portugal that the extension of the ‘Iberian exception’ cannot go beyond December 2023, the date on which the time frame for support initiatives for the war in Ukraine expires, Therefore, as long as the European Union (EU) does not modify it, the extension of the mechanism must abide by it.
This was conveyed by the Competition Commissioner, Margrethe Vestager, to the Third Vice President of the Government and Minister for Ecological Transition and the Demographic Challenge, Teresa Ribera, and the Minister for the Environment and Climate Action of Portugal, Duarte Cordeiro, at their meeting this Wednesday, according to what diplomatic sources have confirmed to Europa Press.
