The price of electricity rebounds after hitting lows in August 2021

An electricity bill. / FILE, ARCHIVE

It stands at 109.78 euros/MWh after having fallen this Sunday to 72 euros, but for the fifth consecutive day the so-called Iberian exception remains unapplied

R. C. MADRID

The week begins with a new and strong rebound in electricity, of more than 50%, although above the minimum for more than a year that it reached this Sunday. Thus, after having fallen this Sunday to 72 euros, the average price of electricity for regulated rate customers linked to the wholesale market will increase this Monday to 109.78 euros, according to provisional data from the Iberian Energy Market Operator (OMIE). In any case, it should be noted that this is the sixth lowest price in October and, furthermore, it will be the fifth consecutive day that the so-called Iberian exception, in force since mid-June, remains without application, since the price of reference for gas plants stands at 36.43 euros/MWh, below the ceiling of 40 euros/MWh.

In the auction, the average price of electricity in the wholesale market – the so-called 'pool' – rises this Monday to 109.78 euros/MWh. In addition, the maximum price will be registered between 8:00 p.m. and 9:00 p.m., with 180.01 euros/MWh, while the minimum for the day will be between 4:00 a.m. and 5:00 a.m.: 77.60 euros/MWh, well above of the little more than 4 euros that it cost the day before.

To this price of the 'pool' is added the compensation to the gas companies that has to be paid by the consumers who benefit from the measure, the consumers of the regulated rate (PVPC) or those who, despite being in the free market, have an indexed rate, which this time for this Monday will be zero again.

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

Specifically, the 'Iberian exception' sets a path for natural gas for electricity generation from a price of 40 euros/MWh in the initial six months –until December 15– to, subsequently, a monthly increase of five euros/ MWh until the end of the measurement.