This Wednesday, June 15, the gas cap comes into effect and the first numbers indicate that it is timidly having a positive effect on the price of energy. Compared to today, the wholesale electricity price fell by 22.6%. The average price will be €165.59 per megawatt hour, compared to €214.05/MWh today, according to Data from the Iberian Energy Market Operator (OMIE).
The price of electricity falls below €200/MWh. Tomorrow’s data is the best data since the end of May. Despite the fact that we are in the midst of a heat wave, the price of electricity will drop timidly and in no band will the barrier of 200 euros per megawatt hour be exceeded.
Compared to today, the price of energy will be about 48 euros cheaper. A reduction in the price despite the fact that the energy negotiated will be higher: 541 GWh tomorrow, Wednesday, compared to 511.40 GWh today. An increase expected by the forecasts of reaching temperature peaks.
The ‘Iberian exception’ starts off on the right foot. Tomorrow is precisely when the so-called ‘Iberian exception’ comes into application, a gas price cap of 40 euros/MWh during the first six months. In comparison, the price these days of natural gas in the Mibgas index exceeds €80/MWh.
It is too early to determine if this reduction in the price of energy is due to the application of the gas cap, but it seems that on its first day of application it will be accompanied by a reduction in prices.
PVPC users will benefit. These changes in the wholesale price of electricity have an impact on consumers who have contracted the PVPC regulated rate, some 11 million households in Spain. In the case of consumers who have free market rates, they will not notice the difference from one day to the next, although this price level is usually taken into account in the future to establish the prices of the rates.
According to latest data from the National Commission of Markets and Competition (CNMC)in 2021 more than 1.25 million customers left the PVPC to the free market, fleeing the high energy prices in that period.
Even so, it is still 80% more expensive than last year. Despite the change in trend, the price of electricity this Wednesday will continue to be 82% more expensive than last year, where it was around €90/MWh.
Image | Elvis Bekmanis