After Saturday’s 5.01% drop in electricity prices, the light price is now below 200 euros. According to data from the Iberian Market Operator of Energy, this Sunday’s average electricity price will be 193.65 euro/MWh. This is about 10 euros less than Saturday’s price (203.86 euros).
The maximum electricity price on June 5, at 245 euros/MWh will be between 10:00 p.m. to 11:00 p.m.; the minimum price for the day will be between 4:00 p.m. to 5:00 p.m. The average electricity price for Saturday, June 5, 2021 will be 154.23% higher than it was a year ago.
Prices of the “pool” have an immediate impact on the regulated rate, the so-called PVPC. This rate covers almost 11 million households and serves as a reference point for 17 million others who have contracted their supply through the free market.
The National Commission of Markets and Competition has confirmed that around 1.25million people changed from PVPC to a rate on the free market at a fixed cost in 2021.
The Royal Decree-Law, which established the mechanism to limit gas prices for electricity generation to 48.8 euros per megawatt/hour (MWh) for twelve months, was published by the Official State Gazette. This covers the next winter when energy prices are higher.
The mechanism is still being published as Royal Decree-Law. It will be finalized by an Ecological Transition Order for its application.
According to the report of impacts that accompany the decree law, the Government limits its calculation to 15.3% the decrease in the average electricity consumption covered by the PVPC rate during the twelve months following the approval of the cap on the generation electricity from natural gas.
The Government estimates that the Industrial Consumer, who is completely exposed to spot prices, will see a decrease in their invoices of 18% to 20%. In the first month, the oscillations between 15% and 17% and between 13% & 15% in the latter.
Teresa Ribera, Minister for the Ecological Transformation and the Demographic Challenge, acknowledged that it is difficult to calculate the exact price reduction of electricity after the cap on the use of gas to generate electricity is in force. However, she maintained that the Executive forecasts that it will fluctuate between 15%-20%.
