The unit price of electricity has risen by 35% in Spain this Monday

The average price of electricity for regulated rate customers linked to the wholesale market has risen by 35.1% this morning (Monday) compared to yesterday, to 251.24 euros/MWh, according to provisional data from the Iberian Energy Market Operator (OMIE).

This price increase is the result of adding the average of the auction price in the wholesale market, to the price that the electricity companies will pay to the combined cycle plants for the application of the 'Iberian exception' to cap the price of gas for the generation of electricity.

In the auction, the average price of electricity in the wholesale market, the so-called 'pool', stands at 200.38 euros/MWh this morning, but the highest price will be registered between 8pm and 9pm tonight at 270 euros/MWh, while the minimum for the day, of 165 euros/MWh, will be between 3pm and 4pm.

50.86 euros/MWh is added to the 'pool' price that the electric companies pay, which has to be paid by the consumers who benefit from the measure, i.e. the consumers of the regulated rate (PVPC) or those who, despite being in the free market, have an indexed rate.

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

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

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 an average of 261.38 euros/MWh, which is almost 10.14 euros/MWh more than the compensation for clients of the regulated rate, who will therefore pay 3.8% less on average.