The price of electricity in the wholesale market will rise 53.45% this Monday compared to this Sunday, so it will stand at 127 euros/MWh, once again approaching 200 euros/MWh.
Specifically, the average price of the ‘pool’ for this May 16 will be 195.23 euros/MWh, according to data published by the Iberian Energy Market Operator (OMIE) and collected by Europa Press
The maximum electricity price for this Monday will be between 7:00 and 8:00 in the morning, with 248.08 euros/MWh, while the minimum for the day, 160.32 euros/MWh, will be recorded between 3:00 p.m. and 4:00 p.m.
Compared to a year ago, the average price of electricity for this Monday will be 632.57% more expensive than the 26.65 euros/MWh of May 16, 2021.
The prices of the ‘pool’ have a direct impact on the regulated rate –the so-called PVPC–, to which almost 11 million households in the country are covered, and serve as a reference for the other 17 million who have contracted their supply in the free market.
In fact, the National Commission of Markets and Competition (CNMC) has verified that in 2021, in the framework of the upward spiral of energy, around 1.25 million people switched from the PVPC to a rate in the free market at a fixed price.
The Official State Gazette (BOE) published this Saturday 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) during a period of twelve months, thus covering the next winter, a period in which energy prices are more expensive.
After its approval in the Council of Ministers on Friday, the Third Vice President of the Government and Minister for the Ecological Transition, Teresa Ribera, pointed out that once the measure comes into force this Saturday and at the expense of the European Commission formally adopting support for the standard , which could be delayed up to “about two weeks” – will mean an immediate improvement for 37% of domestic consumers and 70% for industrial consumers.
In this regard, sources from the Ministry for the Ecological Transition specified that the mechanism, despite its publication as a Royal Decree-Law, will thus remain pending a formal decision from Brussels and to be initialed by an order from the minister for its application.
The third vice president estimated that thanks to this measure the price of the ‘pool’ will fall by around 38% in its average price, from 210 euros per megawatt hour (MWh) marked throughout the first quarter of this year to about 130 euros/MWh. In this way, the only electricity that consumers will pay at the cost of gas will be that produced with gas plants.
The measure will thus help to contain the escalation of prices and inflation and, above all, will act as a firewall against the volatility of gas prices derived from the war in Ukraine, it will also facilitate the reform of the regulated tariff -the so-called PVPC-, incorporating futures market price references.
Ribera assured that, once the measure is in force, consumers in the regulated market will notice this relief in the price of electricity “immediately”, while for the rest of consumers in the free market it will be something “progressive”, seeing benefited when they renew or change, “since their annual review will have the reference with lower prices”.
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