The average electricity price for regulated tariff customers connected to the wholesale market is projected to decrease by 5.34% from this Tuesday, reaching 135.41 Euro per megawatt hour on Wednesday. This assessment reflects the Iberian Energy Market Operator’s data, compiled by Europa Press.
The price change arises from the sum of the wholesale market’s auction average and the compensation that demand for combined cycle power plants pays to apply the Iberian exemption aimed at limiting gas costs for electricity generation.
The auction price for electricity in the wholesale market, commonly referred to as the pool, is forecast at 108.80 Euro per MWh for Wednesday. The highest hourly price is expected to be 203.74 Euro per MWh between 22:00 and 23:00, while the lowest hourly price of 36.18 Euro per MWh is anticipated between 17:00 and 18:00.
Compensation is added to this pool price at a rate of 26.61 Euro per MWh. This amount is charged to gas companies and to regulated rate (PVPC) consumers, as well as to those on indexed tariffs who are still in the free market, and it is paid by customers who benefit from the measure.
33% less
Without the Iberian mechanism, Iberian exemption, the average electricity price in Spain would stand at 202.05 Euro per MWh. That figure would be 66.64 Euro per MWh higher than the adjusted rate after compensation, resulting in an overall reduction of 32.98% for customers on the regulated scheme.
The Iberian mechanism, which began operation on June 15, places a cap on the gas price used for electricity generation at an average of 48.8 Euro per MWh over a twelve month period. This cap is designed to cover the upcoming winter period when energy prices typically rise.
Specifically, the Iberian exemption sets the price of natural gas for electricity generation at 40 Euro per MWh for the first six months, followed by an increase of five Euro per MWh each month through the conclusion of the measure.