The price of electricity will drop this Monday to 93.36 euros/MWh, the lowest in December

MADRID, 18 Dic.

The price of electricity will drop this Monday to 93.36 euros/MWh, the lowest in December


The average price of electricity for regulated rate customers linked to the wholesale market will fall this Monday by 15.45% compared to this Sunday, to 93.36 euros per megawatt hour (MWh), marking the lowest price of the month from December.

In the auction, the average price of electricity in the wholesale market -the so-called 'pool'- stands for this Monday at 81.07 euros/MWh. Thus, the maximum price is registered between 8:00 p.m. and 9:00 p.m., with 130 euros/MWh, while the minimum, of 41 euros/MWh, will occur between 3:00 a.m. and 4:00 a.m., according to provisional data from the Iberian Market Operator of Energy (OMIE) collected by Europa Press.

To this 'pool' price is added the compensation to the gas companies that must be paid by consumers who are beneficiaries of the measure, consumers of the regulated tariff (PVPC) or those who, despite being in the free market, have an indexed rate, which is for this Monday of 12.29 euros/MWh.

In the absence of the 'Iberian exception' mechanism to cap the price of gas for electricity generation, the price of electricity in Spain would be around 204.62 euros/MWh on average, which is around 111.26 euros/MWh more than with the compensation for regulated rate customers, who will thus pay 54.37% less on average.

The 'Iberian mechanism', which came into force on June 15, limits the price of gas for electricity generation to an average of 48.8 euros per MWh for a period of twelve months, thus covering next winter, a period in which energy prices are more expensive.

Specifically, the 'Iberian exception' sets a path for natural gas for electricity generation from a price of 40 euros/MWh in the initial six months, and subsequently, a monthly increase of five euros/MWh until the end of the measure .

In the first fortnight of December, the average daily price of the Spanish wholesale market (pool) stood at 137.05 euros/MWh, which adding the extra cost that the adjustment for the gas cap entails for consumers (67.37 euros /MWh) stands at 204.41 euros/MWh, which represents an increase of 64.30% compared to November, but it is 14.5% lower than a year ago, according to calculations by the ASE group.

This rise in electricity in the first half of December is due to the daily price of Mibgas, driven by the notable increase in the price of gas in Europe and because during the first week of this month there were low temperatures and a reduction in production wind.

However, the price in Spain is 46.7% lower than that of the large European economies due to the gas cap, according to the consultant's analysts, who estimate that electricity will remain below 200 euros/MWh for what remains of December if the weather forecasts are met.