these are the cheapest hours

The average electricity price for regulated rate customers connected to the wholesale market will fall by 0.69% on Saturday compared to this Fridayuntil the €298.25 per megawatt hour (MWh), according to provisional data from the Iberian Energy Market Operator (OMIE).

This new drop for Saturday, coinciding with the arrival of the weekend and a drop in demand, combined with a slightly higher share of renewable energies, will make it possible to lower the price of electricity for customers at the regulated related to the wholesale market. for the first time this week at the level of 300 euros/MWh.

The high prices this week are partly explained by the hello heat which affects the whole country, which implies higher demand and a lower contribution from renewable sources (wind and photovoltaic).

Added to this are tensions over gas supply in the context of russian invasion of ukraine and maintenance work on key infrastructure, factors that pushed the Dutch TTF market (a benchmark in Europe for the price of this raw material) above 170 euros/MWh, while in mid-June, it was around 80 euros/MWh.

This price for PVPC customers is the result of adding the average auction price on the wholesale market to the compensation that demand will pay to combined cycle power plants for the application of the “Iberian exception” aimed at cap the price of gas for electricity generation.

During the auction, the average price of electricity in wholesale market –the so-called ‘pool’– is set for this Saturday and 136.83 euros/MWhwhat this means about 14.97 euros less higher than today’s price (147.25 euros/MWh).

The Maximum price of light for this Saturday will be registered at 10 p.m., with 176.16 euros/MWh, while the Minimum for the day, 120.69 euros/MWh, It will be given at 12:00 p.m.

To this ‘pool’ price is added the compensation of 161.42 euros/MWh to the gas companies which must be paid by the consumers who benefit from the measure, the consumers of the regulated tariff (PVPC) or those who, although being on the free market, they have an indexed rate.

5.9% less than without applying the measure

In the absence of the mechanism of the ‘Iberian exception‘ to cap the price of gas for the production of electricity, the price of electricity in Spain this would have been an average of around 316.97 euros/MWh, which means that you18.72 euros/MWh more than with the compensation of regulated tariff customerswho will thus pay about 5.9% less on average.

Compared to a year ago, the price of electricity for customers of the regulated tariff of this Saturday represents 241% more compared to 87.32 euros/MWh on July 16, 2021.

The Iberian mechanism, which entered into force on 15 June, limits the price of gas for electricity production to an average of 48.8 euros per MWh over a period of twelve months, thus covering the coming winter, a period when prices energy are more expensive.

Specifically, the “Iberian exception” sets a trajectory for natural gas for electricity generation at a price of 40 euros/MWh in the first six months, then a monthly increase of five euros/MWh until the end of the measure.

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