Average electricity price in the wholesale market it will drop this wednesday 22.6% yesterday compared to TuesdayOn the first day of the so-called ‘Iberian exception’ to limit the price of natural gas for electricity generation.
According to data released by the Iberian Energy Market Operator, the average electricity price this Wednesday will be 165.59 euro/MWh, 48 euros lower than yesterday’s price (214.05 euro/MWh) and the lowest level since last May 29. OMIE) and Europa Press.
The maximum electricity price for this June 15 was recorded between: 01:00 and 02:00 hours, It will be between 194.07 euro/MWh and a minimum of 144.17 euro/MWh for the day, 1.6:00 and 17:00. In this way, there will not be a time period exceeding 200 euro/MWh during the day.
However, not all of this reduction in the ‘pool’ price will be passed on to the natural gas capped consumer this Wednesday, as demand for cogeneration plants and combined cycles must include compensation.
This fee, calculated on an hourly basis according to OMIE data, will average around 59 Euro/MWh today, and consumers benefiting from the measure will be paid by consumers of the regulated rate (PVPC). or those that have an indexed rate despite being on the free market.
In this way, the price to be paid by customers in the regulated tariff will be 224 Euro/MWh on average. That price will be less than 6% from the 237 Euro/MWh to be determined this Wednesday without caps on gas – a day due to high demand due to the heat wave and low contribution from renewable sources. — as stated in market sources to Europa Press.
Likewise, the big losers will be companies with fixed price contracts that have renewed since the end of April and will incur an average surcharge of 60 Euros.
Finally got the green light from Brussels last week, the Iberian mechanism limits the gas price for electricity generation to an average of 48.8 euros per MWh over a twelve-month period, thus covering the coming winter. prices are more expensive.
Specifically, the ‘Iberian exception’ specifies a path for natural gas to produce electricity at a price of 40 euros/MWh in the first six months; this is an increase of around 80 euro/MWh for natural gas quoted in Mibgas and then five euro/MWh per month until the end of the measure.
Based on the evidence in effect, the Government, in its calculations, limited the reduction in the average electricity consumer’s bill covered by the PVPC regulated rate to 15.3% during the 12-month period after the application of the approved cap for electricity generation from natural gas. The report accompanying the executive order and accessed by Europa Press.
For the industrial consumer who is fully exposed to the ‘spot’ price, the Government estimated a decline of between 18% and 20% in the first month of the mechanism, oscillating between 15% and 17% and between 13% and 15%. last.
82% MORE EXPENSIVE THAN A YEAR AGO
But despite this drop in the pool, the average electricity price for this Wednesday will be 82% more expensive than a year ago at 90.95 Euro/MWh on 15 June 2021.
‘Pool’ prices have a direct impact on the regulated rate — the so-called PVPC — at which approximately 11 million households are covered in the country and serve as a benchmark for the other 17 million contracted. their supply in the free market.
In fact, the National Markets and Competition Commission (CNMC) confirmed that in 2021, around 1.25 million people switched from PVPC to a free market rate at a fixed price, within the framework of the energy’s upward spiral.
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STABILITY SINCE STABILITY
On February 24, when the Russian invasion of Ukraine began, the wholesale market price was 205.6 euro/MWh, and since then there has been a daily rise in price, reaching its peak on March 8, when the price was at an absolute level. It broke a record with 544.98 euro/MWh.
However, since 12 March, the wholesale price has been hovering around 250 euro/Mwh, but continued to decline in the last five days and fell below 230 euros.
MARCH THE MOST EXPENSIVE MONTH IN HISTORY
On February 24, when the Russian invasion of Ukraine began, the wholesale market price was 205.6 euro/MWh, and since then there has been a daily rise in price, reaching its peak on March 8, when the price was at an absolute level. It broke a record with 544.98 euro/MWh.
In this context, the average price of the wholesale market in March was 283.30 euros/MWh, 239 euros/MWh, which was the most expensive month in history up to that time, and 283.30 euros/MWh, 55 euros above the December 2021 average.
Wholesalers have direct influence on the regulated tariff, or PVPC, which covers approximately 11 million consumers in Spain, and acts as a reference for the other 17 million contracting their supplies in the open market.
The military conflict between Ukraine and Russia could push energy prices higher in the coming weeks, especially when it comes to gas, as Russia’s imports to Europe risk slowing due to European Union sanctions.
In order to soften the impact of the increase in electricity prices on consumers, the Government extended the tax cut on taxes on electricity bills until 30 June.
The rise in prices affecting a large part of Europe is due, among other factors, to the higher cost in international markets and the rise in value of the gas used in combined cycle power plants, which determines the market price in most hours. carbon dioxide (CO2) emission rights.
To soften the impact of the rise in electricity prices on consumers, the Government extended the tax cut on taxes on electricity bills for the first four months.
The rise in prices affecting a large part of Europe is due, among other factors, to the higher cost in international markets and the rise in value of the gas used in combined cycle power plants, which determines the market price in most hours. carbon dioxide (CO2) emission rights.
The military conflict between the two former Soviet countries could push energy prices higher in the coming weeks, especially when it comes to gas, as Russia’s imports to Europe risk being slowed by Russia’s sanctions. European Union.
2021 became the most expensive year of electricity
The light closed 2021 with: most expensive year historical seriesDue to the upward spiral recorded in the ‘pool’ in the second half, it was realized at an average price of 111.93 Euro/MWh.
this electricity price The average price of the daily market last January was 201.72 euros/MWh, 235.3 percent higher than the average price of the same month last year and 15.7% lower than in December 2021.
The government extended the reduction of taxes included in the tariff until April 30. electricity bill all consumers to pay to mitigate the negative impact of rising electricity prices on citizens.
In particular, the reduction of VAT from 21% to 10% and special electricity tax from the legal minimum of 5.11 to 0.5% has been extended until 30 April. However, the suspension of the 7% production tax paid by companies will only last until March 31st for now.