Energy Central Professional

 

Electricity price rises 18% today, bringing the price per MW/h to 235 euros


CE Noticias Financieras  

 

    The average price of electricity for regulated tariff customers linked to the wholesale market will rise this Monday, August 1, by 18.8% compared to yesterday, Sunday, to 235.32 euros per megawatt hour (MWh), according to provisional data from the Iberian Energy Market Operator (OMIE) collected by Europa Press. This price is the result of adding the average price of the auction in the wholesale market to the compensation to be paid by demand to combined cycle power plants for the application of the 'Iberian exception' to cap the price of gas for electricity generation.

    In the auction, the average price of electricity in the wholesale market - the so-called 'pool' - stands at 147.43 euros/MWh for this Monday. The maximum price will be registered from 21.00 to 22.00 hours, with 165.09 euros/MWh, while the minimum for the day, 123.72 euros/MWh, will be between 10.00 and 11.00 hours.

    To this pool price is added the compensation of 87.89 euros/MWh to the gas companies that must be paid by the consumers benefiting from the measure, the consumers of the regulated tariff (PVPC) or those who, despite being in the free market, have an indexed tariff.

    286 euros MW/h without 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 average around 286.19 euros/MWh, which is around 50 euros/MWh more than with the compensation for regulated tariff customers, who will thus pay around 17.7% 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 the coming winter, a period when 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 thereafter, a monthly increase of five euros/MWh until the end of the measure.

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