The price of electricity will skyrocket this Monday to 117.02 euros/MWh, the highest level in 10 days

MADRID, 2 Jul.

The price of electricity will skyrocket this Monday to 117.02 euros/MWh, the highest level in 10 days


The average price of electricity for regulated rate customers linked to the wholesale market will rise this Monday, July 3, by 142.38% compared to this Sunday, up to 117.02 euros per megawatt hour (MWh).

The month of July began with the lowest prices for more than a month, 48.28 euros/MWh this Sunday, but it has shot up for this Monday, to the highest level in ten days.

By time slots, the minimum price, of 88.08 euros/MWh, will be recorded between 4:00 p.m. and 5:00 p.m., while the maximum price will be between 10:00 p.m. and 11:00 p.m., with 139.49 euros/MWh.

The average of the 'pool' of electricity in the month of June stood at 93 euros/MWh, compared to the 169.63 euros/MWh that it marked in the same month last year.

Compensation to the gas companies would be added to this average pool price, which must be paid by consumers who are beneficiaries of the measure, consumers of the regulated tariff (PVPC) or those who, despite being on the free market , have an indexed rate, but which is again at 0 euros/MWh, a situation that has been repeated since February 27.

The so-called 'Iberian exception' has been extended until December 31, after the agreement reached by Spain and Portugal with the European Commission. Thus, it is extended for seven months, until the end of this year, and it is not excluded that it could be extended for a longer time if said framework is also extended.

Specifically, the agreement not only represents an extension of the Iberian exception that was already applied, but also implies some adjustments to accommodate it, such as the price reference, which until now increased by five euros per month, and will now be smoother.

In the original agreement, the aforementioned reference price for gas had an average value of 48.8 euros/MWh: it was 40 euros/MWh for six months, rising 5 euros/MWh each month thereafter. Now, it will increase by 1.1 euros/MWh from last April, to conclude at 65 euros/MWh.

Currently, the mechanism has had no effect on the marginal matching processes in the wholesale markets since the end of February, due to the drop in the price of natural gas below the thresholds set for its application, but, if necessary, the extension will allow maintain a reasonable price, not so dependent on the evolution of natural gas.