The light falls below 200 euros again this Sunday

Electricity bill. / FILE, ARCHIVE

The average price of electricity is reduced by 5% and will stand at 193.65 euros/MWh, ten euros cheaper than this Saturday


The light is once again below 200 euros this Sunday after the average price of electricity in the wholesale market fell by 5.01% compared to Saturday. Specifically, the average price of electricity will be 193.65 euros/MWh this Sunday, about 10 euros cheaper than the price this Saturday (203.86 euros), according to data published by the Iberian Market Operator of Energy (OMIE).

Thus, the maximum price of electricity on June 5 will be registered between 10:00 p.m. and 11:00 p.m., with 245 euros/MWh, while the minimum for the day, of 153.51 euros/MWh, will take place between 4:00 p.m. and 5:00 p.m. Compared to a year ago, the average price of electricity for this Saturday will be 154.23% more expensive than the 76.17 euros/MWh of June 5, 2021.

The prices of the 'pool' have a direct impact on the regulated rate -the so-called PVPC-, to which almost 11 million households in the country 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 verified that in 2021, in the framework of the upward spiral of energy, around 1.25 million people switched from the PVPC to a rate in the free market at a fixed price.

Gas price limits

On May 14, the Official State Gazette (BOE) published the Royal Decree-Law establishing the mechanism to limit the price of gas for electricity generation to an average of 48.8 euros per megawatt/hour (MWh ) for a period of twelve months, thus covering the next winter, a period in which energy prices are more expensive.

However, the mechanism, despite its publication as Royal Decree-Law, is pending the formal decision of Brussels and to be initialed by an Ecological Transition order for its application.

The Government limits in its calculations to 15.3% the reduction to the average electricity consumer covered by the PVPC regulated rate during the 12 months of application of the approved cap on the generation of electricity from natural gas, according to the report of impact that accompanies the decree law.

For the industrial consumer, totally exposed to the spot price, the Government estimates a reduction in the invoice of between 18% and 20%, the first month of the mechanism oscillating between 15% and 17%, and between 13% and 15% in the latter.

Despite this, the Minister for the Ecological Transition and the Demographic Challenge, Teresa Ribera, has admitted that there is some "uncertainty" in calculating the exact reduction in the price of electricity once the cap on gas to generate electricity comes into force, but maintains that the forecast of the Executive is that it will fluctuate between 15% and 20%.

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