Electricity price will be close to 200 euros this Tuesday, waiting for gas cap

The average electricity price in the wholesale market will fall 0.83% on Tuesday compared to this Monday, staying below the 200 euro per megawatt hour (MWh) level.

Specifically, the average electricity price this Tuesday will be in 193.32 Euro/MWhAccording to data published by the Iberian Energy Market Operator (OMIE), 1.62 euros is cheaper than this Monday’s price (194.94 euros).

Thus the maximum price of electricity on this 7th June will be recorded between 10:00 pm and 11:00 pm, with 228.81 euros/MWh, while the minimum for the day, will be 164.07 Euro/MW, between 5:00 pm and 6:00 pm.

Compared to a year ago, the average electricity price for this Tuesday will be 142.59% more expensive than 79.69 Euro/MWh on June 7, 2021.

prices’pool’ has a direct impact on regulated tariffs—the so-called PVPCs—which cover about 11 million households in the country, and serve as a reference for another 17 million who have contracted their supplies on the free market.

In fact, the National Markets and Competition Commission (CNMC) has verified that in 2021, in the framework of energy’s upward spiral, approximately 1.25 million people switched from PVPC at a fixed price to a free market at a rate.

Last May, the electricity bill of an average user reached 120.68 euros, an increase of 46.9% from 82.13 euros in the same month last year, according to data from Facua-Consumidores en Acción on the development of the regulated rate (PVPC) , as the sixth highest in receipt history for the previous month.

waiting for gas cap

In mid-May, the Official State Gazette (BOE) published a Royal Decree-Law establishing a mechanism to limit the price of gas to an average for electricity generation. €48.8 per megawatt/hour (MWh) for a period of twelve months, thus covering the next winter, a period in which energy prices are more expensive.

However, the mechanism, despite its publication as a Royal Decree-Law, is pending a formal decision by Brussels and for its application to be initiated by an ecumenical transition order.

The government limits in its calculations 15.3% reduction for the average power consumer Accepted the PVPC regulated rate during 12 months of application of the approved cap on the generation of electricity from natural gas, as stated in the impact report accompanying the decree legislation and accessed by Europa Press.

For the industrial consumer, who is fully exposed to the spot price, the government estimates that the bill will reduce by between 18% and 20%, between 15% and 17% in the first month of the mechanism, and by 13%. There will be an oscillation between 15%. in the latter.

Despite this, the Minister for Ecological Transition and Demographic Challenge, Teresa Ribera, has acknowledged that there is some “uncertainty” in calculating the exact reduction in the price of electricity when gas limits for generating electricity are implemented, but maintained. Holds that the executive forecasts it will fluctuate between 15% and 20%.