The average price of electricity in the wholesale market shoots up 70.38% and will stand at 146.95 euros/MWh
The light picks up again after the respite it has given this Saturday. And it does so with one of the biggest increases of the year. The average price of electricity in the wholesale market shoots up 70.38% this Sunday and will stand at 146.95 euros/MWh, after rising 60.70 euros compared to 86.25 euros/MWh this Saturday , according to data published by the Iberian Energy Market Operator (OMIE).
The maximum price of electricity for this April 24 will be between 9:00 p.m. and 10:00 p.m., with 257.04 euros/MWh, while the minimum for the day is just 102 euros/MWh and occurs between 4:00 p.m. 5:00 p.m. Compared to a year ago, the average price of electricity for this Sunday will be 156.41% more expensive than the 57.31 euros/MWh of April 24, 2021.
The lower price of the wholesale market in the last week, where the lowest values have been registered so far in 2022, has coincided with a relief in the price of natural gas and a greater contribution of renewable energies in generation .
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.
The 'Iberian exception'
The governments of Spain and Portugal have submitted a preliminary proposal to the European Commission to establish a reference price for gas of 30 euros/MWh for electricity generation plants in order to lower the price of electricity. In this sense, the third vice president of the Government and minister for the Ecological Transition, Teresa Ribera, advanced this Thursday that they are working so that "in early May" the agreement can be "approved and applied" so that there is an 'Iberian exception ' at the price of energy.
Asked if he expects Brussels to accept the conditions of Spain and Portugal, Ribera pointed out that the members of the European Commission want "to be sure that the proposal is the best, as robust as possible." “Obviously, when one goes to a negotiation process in these conditions, he knows that it is very possible that there are aspects that are modulated, that are nuanced”, added the minister.
In addition, on March 29, the Government approved a national plan to deal with the impact of the war in Ukraine that includes, among other measures, the extension of the tax reduction on taxes levied on electricity bills until the next June 30, as well as the extension of the electricity social voucher to reach 1.9 million beneficiary households.
An early and extraordinary update of the regulated remuneration regime for renewables, cogeneration and waste (Recore) was also adopted with an adjustment of 1,800 million euros with which the charges on the electricity bill are lowered.
Another of the measures agreed by the Executive was an extension until June 30 of the reduction of gas to reduce extraordinary profits in the electricity market, expanding its scope of application to energy contracted on a term basis and at a fixed price from the entry of the norm if said price is higher than 67 euros/MWh.