The price of electricity falls 31% and marks its lowest in December

The average price of electricity in the wholesale market fell 31% on Thursday to stand at 177.4 euros per megawatt hour (MWh), with the cost of the pool and compensation to gas companies, compared to 260.54 euros yesterday. This is the lowest price so far in December.

According to the latest data from the Iberian Electricity Market Operator (OMIE) gathered by Servimedia, today the gas cap is applied again. Without this measure, the cost would be 276.34 euros, which represents a reduction of 35.8%.

The price of the pool is 122.39 euros, 14% less than the 142.30 euros of yesterday, Wednesday. The maximum price will be recorded between 20.00 and 21.00 hours, with 166.44 euros/MWh, while the minimum for the day, 102.50 euros/MWh, will be between 05.00 and 06.00 hours.

For its part, the amount of gas compensation is reduced to 55.05 euros per MWh, compared to 118.24 euros yesterday, a decrease of 53.4%. The compensation was E60.62 a week ago.

In sum, E177.44 per MWh is down 15.8% from E210.70 on Thursday last week but up 54.5% on E114.87 a month ago on November 8. In addition, in year-on-year comparison, this Thursday there is a 63.2% increase in price since on December 8 last year the price was 108.73 euros per MWh.

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 the coming 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 -until December 15-, and thereafter, a monthly increase of five euros/MWh until the end of the measure.