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The electricity price for regulated customers fell this Thursday by 3.08% to EUR 273.43/MWh

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Almost 17 euros cheaper than the 290.26 euros with which the MWh would have been paid if the gas price limit had not been applied

MADRID, June 22 (EUROPA PRESS) –

The average price of electricity for regulated customers connected to the wholesale market this Thursday will fall 3.08% to €273.43 per megawatt-hour (MWh) compared to Wednesday, before falling again after three consecutive increases.

This price for PVPC customers is obtained by adding the average price of the auction on the wholesale market to the compensation payment that demand will pay to combined cycle power plants for the application of the “Iberian exception” limiting the price of gas for electricity generation.

In the auction, the average electricity price on the wholesale market – the so-called “pool” – this Thursday was 149.86 euros/MWh and thus 2.89 euros below today’s price (152.75 euros/MWh). a drop of 1.89%, according to Iberian Energy Market Operator (OMIE) data collected by Europa Press.

The maximum electricity price for this June 23rd will be registered between 00:00 and 01:00 at 186.5 euros/MWh, while the minimum price for the day will be between 18:00 and 07:00 at 124.32 euros/MWh watch

To this price of the “pool” is added the remuneration of 123.57 euros/MWh to the gas companies, compared to 129.37 euros/MWh this Wednesday. This compensation must be paid by the consumers who benefit from the measure, by the consumers of the regulated tariff (PVPC) or by those who, despite being on the free market, have an indexed tariff.

5.8% LESS THAN WITHOUT APPLYING THE MEASURE

Without the mechanism of the “Iberian exception” to limit the price of gas for electricity generation, the electricity price in Spain would have been on average 290.26 euros/MWh, which is almost 17 euros/MWh more than with the compensation payment customers of the regulated tariff, who thus have an average of around Pay 5.8% less.

Compared to the previous year, the electricity price for customers of the regulated tariff for this Thursday is 204.21% above the 89.88 euros/MWh that the pool marked on average for June 23, 2022.

The Iberian mechanism, which came into force on June 15, limits the gas price for electricity generation to an average of 48.8 euros per MWh over a twelve-month period, covering the coming winter when energy prices are more expensive.


Specifically, the “Iberian exception” provides that natural gas for electricity generation will be increased at a price of 40 euros/MWh in the first six months and then by 5 euros/MWh monthly until the end of the measure.

AN EXPECTED GOVERNMENT REDUCTION OF 15% ON RECEIVING

In its calculations, the government limited the revenue cut for the average electricity consumer covered by the PVPC-regulated tariff to 15.3% during the 12 months of application of the approved natural gas power generation cap, according to the evidence in the Impact Report accompanying the Legislative Decree and to which Europa Press had access.

For the commercial consumer, who is fully exposed to the “spot” price, the government estimated a reduction of between 18% and 20%, with the first month of the mechanism fluctuating between 15% and 17% and between 13% and 15% last.

The prices of the “pool” directly affect the regulated tariff – known as the PVPC – to which nearly 11 million households in the country belong, and serves as a reference for the other 17 million who have contracted their supply on the open Market.

In fact, the National Commission on Markets and Competition (CNMC) has determined that in 2021, as part of energy’s upward spiral, around 1.25 million people have switched from PVPC to a fixed-price open-market tariff.

VAT REDUCTION OF LIGHT TO 5%

Prime Minister Pedro Sánchez announced this Wednesday in Congress that the legislative decree that the Council of Ministers will adopt this Saturday to extend measures to mitigate the economic effects of the war in Ukraine will include a reduction in VAT on electricity from 10% to 5%

A year ago a reduction in this tax from 21% to 10% was approved, now it is to be reduced to 5%. “By doing so, we will protect the families of our country,” said Sánchez, who also called on the rest of the political forces in Congress to support the validity of this new legislative decree “instead of criticizing and complaining”.


Source europapress.es

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