The price of electricity in the wholesale market will rise by 10.32% today, Monday, and will exceed 250 euros megawatt/hour (MWh), a level that had not been exceeded in the last four days. Specifically, the average price will be 251.87 euros, which is 23 cents more expensive than the 228.30 euros/MWh yesterday, according to data published by the Iberian Energy Market Operator (OMIE).
According to OMIE, the highest price will be between 9pm and 10pm with 298.06 euros/MWh, while the lowest, of 172.65 euros/MWh, will be registered between 2am and 3am. Compared to just a year ago, the pool price for today will be 808% higher than the 27.74 euros/MWh on April 4th 2021.
The prices of the wholesale market 'pool' have a direct impact on the regulated rate (the so-called PVPC), by which almost 11 million consumers in Spain are covered, and serve as a reference for the other 17 million who have contracted their supply in the free market.
In fact, the National Commission of Markets and Competition (CNMC) has confirmed that in 2021 around 1.25 million people switched from the PVPC to a rate in the free market at a fixed price due to the increase in prices.
Price cap on gas of 30 euros:
The governments of Spain and Portugal have submitted a preliminary proposal to the EU Commission to establish a reference price for gas of 30 euros per megawatt in order to lower the price of electricity.
The Minister of Ecological Transition, Teresa Ribera, has made it clear that it is a joint proposal formulated by both governments and subject to negotiation with the European authorities.
If the proposal is accepted, Ribera has predicted that the price of electricity may be limited "in three or four weeks time", for which she has said that "we have to be patient until all technical concerns of the proposal are passed.”
If it goes ahead, the proposal would have repercussions on pool prices due to its impact, among other issues, on the sales offers made daily in the wholesale market by combined cycle plants, which generate electricity by using gas.
