The price of electricity finally falls for the beneficiaries of the gas cap and is reduced by 20.4% this Saturday

The price of electricity for customers covered by the regulated rate of the regulated price for small consumers (PVPC) will finally be cheaper this Saturday, a day of less demand and in the final stretch of the heat wave. This is the first fall after the entry into force last Tuesday of the Iberian solution, of which this group of users are the main beneficiaries.

The cap on gas opens with a lower fall than that estimated by the Government

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With the gas price on the rise again, PVPC customers are going to pay this Saturday (a day with less electricity consumption due to lower industrial activity) 212.02 euros per megawatt hour (MWh) for energy, which represents a decrease of 20.4% compared to Friday, according to data from the Iberian Electricity Market Operator (OMIE).

That price already includes the compensation that must be paid to the combined cycle plants for the gas cap: the difference between their real price and the limit of 40 euros that has been implemented to prevent their price from contaminating wholesale market prices. That compensation is going to be reduced this Saturday for the first time since this mechanism was launched. It will stand at 65.48 euros/MWh, 26% less than on Friday.

This payment is added to the price of the wholesale market, which on average this Saturday is also cheaper. It does 17.6%, up to 146.54 euros, which is the lowest level since April. Although it is still higher than the 130-140 euros/MWh to which the Government estimated that the pool would fall when announcing the measure, that price is much lower than those registered for this Saturday in the wholesale markets of France (232.4 euros) or Germany (195.4 euros), with gas prices at three-month highs due to the sharp reduction in flows from Russia.

In the case of the reference of the Iberian gas market, Mibgas, the price for this Saturday that is used to calculate the compensation for the cycles stands at 109.67 euros/MWh, which is 2.5% more than on Friday .

The Iberian solution entered into force in the electricity auction on Tuesday with savings for consumers well below what the Government had anticipated. Experts recall that the mechanism has started in the worst possible context: in the worst heat wave for a month of June in 20 years.

The high temperatures of recent days and the increased demand have triggered the generation of electricity with combined cycles to record highs. And the intensive use of these plants has also forced the use of plants with less efficiency, which in turn raises the cost of compensation to the cycles.

Thus, last Thursday the demand for natural gas for electricity generation reached 770 gigawatt hours (GWh), registering a new historical record, second in a row, by exceeding the 764 GWh of the previous day, according to Enagás.

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