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The electricity price for regulated tariff customers rose this Monday by 11.7% to EUR 188.78/MWh

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Around 92 euros less than those that would have been paid per MWh without the gas price limit

MADRID, June 26 (EUROPA PRESS) –

The average electricity price for regulated tariff customers connected to the wholesale market on Monday will rise by 11.7% compared to this Sunday to EUR 188.78 per megawatt hour (MWh).

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 Monday was 143.27 euros/MWh and thus 25.33 euros above today’s price (117.94 euros/MWh). Up 21.44%, according to Iberian Energy Market Operator (OMIE) data collected by Europa Press.

The maximum electricity price for this June 27th will be recorded between 21:00 and 22:00 at 181 euros/MWh, while the minimum for the day will be between 03:00 and 04:00 at 115.25 euros/MWh.

In addition to this “pool” price, the payment of 45.51 euros/MWh to the gas companies is added. 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.

32% LESS THAN WITHOUT APPLYING THE MEASURE

Without the “Iberian Exception” mechanism to cap the price of gas for electricity generation, the electricity price in Spain would have averaged around 280 euros/MWh, which is around 92 euros/MWh more than compensated regulated tariff customers, who thus average around 32 pay % less.

Compared to a year ago, the electricity price for customers of the regulated tariff this Monday is 118% above the 86 euros/MWh that the pool marked on average at the time.

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.

The decree-law passed by the government this Saturday to expand measures to mitigate the economic effects of the war in Ukraine provides for 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%.

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Source europapress.es

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