In the wholesale electricity market, estimates show a 1.5% drop for this Thursday compared with Wednesday, keeping prices below 190 euros per megawatt hour (MWh) for a second consecutive day.
Moreover, the average price for electricity this Thursday is projected at 182.67 euros per MWh, representing a saving of 2.78 euros against Wednesday’s average of 185.45 euros, according to data published by the Iberian Energy Market Operator and compiled by Europa Press.
On Thursday, June 9, the hourly peak is expected to reach 215.71 euros per MWh between 08:00 and 09:00, while the daily floor is anticipated at 154.37 euros per MWh from 16:00 to 17:00.
When comparing the Thursday prices to those of the same day last year, the market shows a notable increase of 123.86 percent, meaning an uplift of more than 81.6 euros per MWh on 9 June 2021.
The so-called pool prices influence the regulated rate known as PVPC, which covers roughly 11 million households in the country and also sets a benchmark for the other 17 million customers who purchase energy in the free market.
In fact, the National Markets and Competition Commission confirms that in 2021 about 1.25 million people moved from the PVPC to a fixed-price free-market rate as part of the ongoing energy price dynamics.
Gas cap awaiting approval
In mid-May, the Official State Gazette published the Royal Decree establishing a mechanism to cap the price of gas used for electricity generation. The cap averages 48.8 euros per MWh over a twelve-month period, aiming to shield households during the winter when energy costs tend to rise.
Nevertheless, while the decree is in place, the measure awaits the formal decision from Brussels and will be enacted through the Ecological Transition order for implementation.
The government estimates an average 15.3% discount for electricity consumers under the PVPC-regulated rate over the twelve months following the cap’s application for electricity generation from natural gas, as indicated in the impact report accompanying the decree and made available to Europa Press.
For industrial users fully exposed to the spot price, authorities project a reduction in the first month of the mechanism in the range of 18% to 20%. In the following months the predicted savings vary from 13% to 15% and then fluctuate further in subsequent periods.
Despite these estimates, the Minister of Ecological Transition and Demographic Challenge, Theresa Rivera, noted some uncertainty in calculating the exact price drop once the gas cap comes into effect. The government’s forecast remains that price movements will fall within the 15% to 20% range.