these are the cheapest hours

The average electricity price For customers at the regulated tariff connected to the wholesale market, it will drop by 0.69% this Saturday compared to this Thursday, to 298.25 euros per megawatt hour (MWh), according to provisional data from the Iberian Market Operator of energy (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 allow the price of electricity for customers at the regulated tariff linked to the market wholesale lower for the first time this week from the level of 300 euros/MWh.

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

Added to this are tensions over gas supply in the context of the Russian invasion of Ukraine and maintenance work on key infrastructure, factors which have boosted the Dutch TTF market (a benchmark for the Europe in the price of this raw material). until reaching more than 170 euros/MWh, whereas 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.

In the auction, the average price of electricity on the wholesale market — the so-called “pool” — amounts to 136.83 euros/MWh for this Saturday, approximately 14.97 euros less than today’s price (147.25 euros/MWh). 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.

The price maximum of light for this Saturday will be registered at 9:00 p.m. and 10:00 p.m.with 176.16 euros/MWh, while the Minimum for the day, of 120.69 euros/MWh, will be remitted to 11:00.

5.9% less than without applying the measure

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In the absence of the mechanism of the ‘Iberian exception‘ To cap the price of gas for electricity generation, the price of electricity in Spain would have been on average around 316.97 euros/MWh, which is around 18.72 euros/MWh more than with the compensation of regulated tariff customers, who therefore pay around 5.9% less on average. Compared to a year ago, the price of electricity for customers of the regulated tariff this Saturday is 241% higher 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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