The average electricity price for customers on regulated rates in the wholesale market is set to rise by 38.3% this Wednesday compared with Tuesday, reaching 207.45 euros per megawatt hour (MWh).
In the auction, the typical price of electricity in the wholesale market, known as the pool, stands at 151.25 euro per MWh for this Wednesday. Accordingly, the maximum hourly price will be 186 euro per MWh between 10:00 and 23:00, while the lowest price for the day will be 130 euro per MWh during the 02:00 to 03:00 window, according to provisional data from the Iberian Energy Market Operator and reported by Europa Press.
To the pool price comes the surcharge paid to gas suppliers for customers who benefit from the measure, those on the regulated tariff (PVPC), or those with an indexed rate but part of the free market. The expected surcharge for Wednesday is 56.2 euro per MWh.
As a result, the price of electricity will again exceed the level seen in Turkey, reaching around 200 euro per MWh. The day’s peak could hit 222.86 euro per MWh when the compensation is included, marking the highest level since mid-October.
16.4% lower
Without an Iberian exception mechanism that caps gas prices for electricity generation, Spain’s electricity price averages about 248.32 euro per MWh. That means regulated tariff customers would on average pay around 16.4 percent less than the broader market, translating to roughly 40.87 euro per MWh lower on average.
The Iberian mechanism began operating on June 15 and limits the price of gas used for electricity generation to an average of 48.8 euro per MWh for a twelve month period, providing relief during the winter when energy costs tend to rise.
Specifically, the Iberian exception allows natural gas for electricity generation to see a price increase of about 40 euro per MWh in the first six months, ending December 15, followed by a smaller rise of five euro per MWh each month through the rest of the measure’s term.