The maximum price will be recorded between 8:00 p.m. and 9:00 p.m., with 250 euros/MWh, and the minimum, 138.7 euros/MWh, between 3:00 p.m. and 5:00 p.m.
The price of electricity in Spain would be around 331.37 euros/MWh on average, which is 45.34 euros/MWh more than with the compensation
The ‘Iberian mechanism’ limits the price of gas for electricity generation to an average of 48.8 euros per MWh over a period of twelve months
The average price of electricity for regulated rate customers linked to the wholesale market will rise this Thursday by 20.02% compared to this Wednesday, to 286.03 euros per megawatt hour (MWh), according to provisional data Operator of the Iberian Energy Market (OMIE) Collected by Europa Press.
This price is the result of add the auction average in the wholesale market to the compensation it will pay the demand to the combined cycle plants for the application of the ‘Iberian exception’ to cap the price of gas for the generation of electricity.
Maximum price between 8:00 p.m. and 9:00 p.m.
In the auction, the average price of electricity in the wholesale market – the so-called ‘pool’ – will stand this Thursday at 175.42 euros/MWh. the maximum price will be recorded between 8:00 p.m. and 9:00 p.m., with 250 euros/MWh, Meanwhile he minimum for the day, of 138.7 euros/MWh, will be given in the period between 3:00 p.m. and 5:00 p.m.
To this ‘pool’ price is added the compensation of 110.61 euros/MWh to the gas companies that has to be paid by the consumer beneficiaries of the measure, the consumers of the regulated rate (PVPC) or those who, despite being on the free market, have a indexed rate.
Almost 14% 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 an average of 331.37 euros/MWh, which means 45.34 euros/MWh more than with the compensation for clients of the regulated rate, who will thus pay 13.68% less on average.
The ‘Iberian mechanism’, which entered into force on June 15, limits the price of gas for electricity generation at an average of 48.8 euros per MWh for a period of twelve months, thus covering the next winter, a period in which energy prices are more expensive.
Specifically, the ‘Iberian exception’ sets a path for natural gas to generate electricity from 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 measurement.