In concrete terms, the average electricity price this Friday will be 177.90 euros/MWh. According to the Ministry of Ecological Transition, prices in Spain would have risen to around 300 euros/MWh without the mechanism.
The average price of electricity in the wholesale market will rise again this Friday, with a recovery of 4.15% compared to this one Thursdayon the third day of application of the so-called ‘Iberian exception’ for increase the price of gas for electricity generation, approaching the level of 180 euros per megawatt hour (MWh).
Specifically, the average price of electricity this Friday will be €177.90/MWhthat is 7.09 euros more than the current price (170.81 euros/MWh), according to data from the Iberian Energy Market Operator (OMIE).
For example, the price paid by customers for the regulated tariff is on average 266.38 euros/MWh, 2.8% more than the 259 euros/MWh it rose to on Thursday.
Sources from the Ministry for the Ecological Transition and the Demographic Challenge indicated that, in the absence of the mechanismwhose correct application is controlled by the National Commission for Markets and Competition (CNMC), prices in Spain would have risen to about €300/MWhthat is about 33 euros/MWh less than the price with the fee for customers of the regulated tariff, 11.2% less.
For example, they pointed out that “its effectiveness has been shown to lower the price of electricity, limit the extraordinary profits of electric utilities and act as a ‘firewall’ against high gas prices.”
The electricity market in other European countries for this Friday ranges from 303 euros/MWh in France, against 255 euros/MWh in Germany or 327 euros/MWh in Italy
These prices are recorded in a context characterized today by the heat wave and high demand, with a very exceptional participation of gas-fired power plants in the generation. The ministry therefore believes that “with a situation as unfavorable as the current one, the mechanism proves its usefulness in extreme situations”.
Compared to a year ago, the average price of electricity for this Friday will be 91% more expensive than the 93 euros/MWh from June 17, 2021
Source: EITB
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.
