The uptrend comes despite European Commission warnings
Pending the final action of the European Commission, and after this Friday’s council of energy ministers, the cost of electricity generation this Saturday will increase by 15% compared to this Friday, to 282.91 euros per megawatt hour (MWh). This daily price is the result of adding the average of the wholesale market auction to the fee that demand will pay to the combined cycle plants for the application of the ‘Iberian exception’ to cap the price of gas for electricity generation . In this way, the price is again close to 300 euros/MWh, a price that has not been exceeded since Tuesday of this week.
The price remains a long way from last week’s maximum levels when it reached an average of €486.21/MWh, the highest value since the entry into force of the ‘Iberian exception’ and the second highest in history for regulated tariff customers. to the wholesale market, only behind the record EUR 544.98/MWh recorded on March 8, before the application of the ‘gas cap’. In the auction, the average price of electricity on the wholesale market (the so-called ‘pool’) for this Saturday will be 176.05 euros/MWh. In addition, the compensation of EUR 106.86/MWh to the gas companies to be paid by consumers who benefit from the measure, consumers of the regulated tariff (PVPC) or those who, despite being on the free market . an indexed rate.
Without the ‘Iberian exception mechanism’ to limit the price of gas for electricity generation, the price of electricity in Spain would be on average around 323 euros/MWh, which is about 40.09 euros/MWh more than with the compensation for customers of the regulated rate, which will therefore pay on average 12.41% less.
The ‘Iberian mechanism’, which came into effect on June 15, limits the price of gas for electricity generation to an average of 48.8 euros per MWh for a period of twelve months until May next year.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
