The average price of electricity will be reduced by 5% and will amount to 193.65 euros/MWh, ten euros cheaper than this Saturday
The light is again below 200 euros this Sunday after the average price of electricity on the wholesale market fell by 5.01% compared to Saturday. Specifically, the average price of electricity this Sunday will be 193.65 euros/MWh, about 10 euros cheaper than Saturday’s price (203.86 euros), according to data published by the Iberian Market Operator of Energy (OMIE).
For example, the maximum electricity price on June 5 between 22:00 and 23:00 will be registered at 245 euros/MWh, while the minimum price for the day of 153.51 euros/MWh will take place between 16:00. p.m. and 5 p.m. Compared to a year ago, the average price of electricity for this Saturday will be 154.23% more expensive than the 76.17 euros/MWh of June 5, 2021.
The prices of the ‘pool’ have a direct impact on the regulated tariff – the so-called PVPC – which covers nearly 11 million households in the country, and serves as a reference for the other 17 million who have contracted their supply on the free market.
In fact, the National Commission on Markets and Competition (CNMC) verified that by 2021, as part of the upward energy spiral, about 1.25 million people have switched from the PVPC to a fixed-price free-market tariff.
On May 14, the Official Gazette (BOE) published the Royal Decree-law establishing the mechanism to limit the price of gas for electricity generation to an average of 48.8 euros per megawatt/hour (MWh) for a period of twelve months. for the coming winter, a period when energy prices are more expensive.
However, the mechanism, despite its publication as a Royal Decree-Law, is pending the formal decision of Brussels and has to be initialed by a transitional ecological decree for its application.
The government limits in its calculations to 15.3% the reduction to the average electricity consumer subject to the regulated PVPC rate during the 12 months of application of the approved ceiling for the generation of electricity from natural gas, according to the report of impact that the decree law.
For the industrial consumer, fully exposed to the spot price, the government estimates a cut of the bill from 18% to 20%, the first month of the mechanism fluctuates between 15% and 17%, and between 13% and 15% in the latter .
Despite this, the Minister for the Ecological Transition and the Demographic Challenge, Teresa Ribera, has admitted that there is some “uncertainty” in calculating the exact cut in the price of electricity once the gas limit for electricity generation comes into effect, but maintains that that is the Executive’s forecast to fluctuate between 15% and 20%.
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.
