The maximum price will be given between 9:00 p.m. and 11:00 p.m., when it will be 40.07 euros
At auction, the average price of light on the wholesale market stands at 6.7 euros/MWh for this Sunday
Without the “Iberian exception” to cap the price of gas for electricity production, the price would be around 40.21 euros/MWh on average
The average price of electricity for customers at the regulated tariff connected to the wholesale market will increase this Sunday, January 1 to 5.85 euros per megawatt hour (MWh), which represents an increase of 221.43% compared to this Saturday, where the lowest price has been recorded since January 31, 2021, at 1.82 euros/MWh.
At auction, the average price of electricity on the wholesale market – the so-called “pool” – amounts this Sunday to 6.7 euros/MWh. Specifically, between 00:00 a.m. and 1:00 p.m. the price will be zero euros. The maximum price will be given between 9:00 p.m. and 11:00 p.m., when it will be 40.07 euros.
To this pool price is added a compensation for the gas companies, which must be paid by the consumers benefiting from the measure, the consumers of the regulated tariff (PVPC) or those who, although being on the free market, have a indexed tariff, which for this Sunday will be in negative figures (-0.85 euros/MWh).
85.45% less than without the Iberian exception
In the absence of the “Iberian exception” mechanism to cap the price of gas for electricity production, the price of electricity in Spain would be around 40.21 euros/MWh on average, i.e. approximately 34.36 euros/MWh more than with the compensation of regulated tariff customers, who will thus pay 85.45% less on average.
The “Iberian mechanism”, which entered into force on June 15, limits the price of gas for electricity production to an average of 48.8 euros per MWh for a period of twelve months, thus covering next winter, a period when energy prices are more expensive.
More precisely, the “Iberian exception” sets a trajectory for natural gas for the production of electricity starting from a price of 40 euros/MWh in the first six months, then, thereafter, a monthly increase of five euros/MWh until the end of the measurement .
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