Around 16 euros cheaper than the more than 286 euros that would have been paid per MWh without the gas price limit
MADRID, June 20 (EUROPA PRESS) –
The average price of electricity for regulated customers connected to the wholesale market will rise by 4.4% this Tuesday compared to this Monday to 270.17 euros per megawatt hour (MWh).
This increase, which follows that of this Monday (258.68 euros/MWh), comes after the falls recorded over the weekend, coinciding with the fall in demand and the end of the heat wave.
This price for PVPC customers is obtained by adding the average auction price on the wholesale market and the compensation payment that demand will pay to the combined cycle power plants for the application of the “Iberian exception” to cap the price of gas for electricity production.
In the auction, the average electricity price on the wholesale market – the so-called “pool” – for this Tuesday is 148.03 euros/MWh and thus 9.45 euros below the price of this Monday (157.48 euros/MWh). a 6% drop, according to Iberian Energy Market Operator (OMIE) data collected by Europa Press.
The maximum electricity price for this June 21 is registered between 10:00 p.m. and 00:00 a.m. at 180.03 euros/MWh, while the minimum for the day at 126.36 euros/MWh is between 5:00 p.m. and 6:00 a.m becomes :00 o’clock
To this price of the “pool” is added the compensation of 122.14 euros to the gas companies, compared to 109.36 euros today. 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.
5.6% LESS THAN WITHOUT APPLYING THE MEASURE
Without the “Iberian Exception” mechanism to cap the price of gas for electricity generation, the average price of electricity in Spain would have been around 286 euros/MWh, which is around 16 euros/MWh more than compensated regulated tariff customers, who thus average around 5 Pay .6% less.
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 at a price of 40 euros/MWh in the first six months and then monthly until the end of the measure by 5 euros/MWh.
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.