The average price of electricity for regulated rate customers linked to the wholesale market will rise by 33% on Wednesday compared to this Tuesday, up to 86.86 euros per megawatt hour (MWh).

In the auction, the average price of light in the wholesale market –the so-called ‘pool’– will stand this Wednesday at 90.53 euros/MWh. The maximum price will be registered between 9:00 p.m. and 10:00 p.m., with 160 euros/MWh, while the minimum for the day will be 4.11 euros/MWh between 4:00 a.m. and 6:00 a.m., according to provisional data from the Market Operator. Ibérico de Energía (OMIE) collected by Europa Press.

To this ‘pool’ price is added the compensation to the gas companies that must be paid by consumers who are beneficiaries of the measure, consumers of the regulated tariff (PVPC) or those who, despite being in the free market, have an indexed rate, which for this Wednesday, for the eighth consecutive day, will show a negative balance with -3.67 euros/MWh.

The low prices of these last days, with respect to those of the last months, are driven, in addition to the more contained natural gas prices in the country, by the greater participation of renewable energies, especially wind power, in the ‘mix’ . In fact, this technology broke a record for instantaneous wind production on Monday, generating 20,594 megawatts (MW) at 6:40 p.m., reaching 56% of electricity production.

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 around 114.13 euros/MWh on average, which is around 27.27 euros/MWh more than with the compensation for regulated rate customers, who will thus pay 24% less on average.

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 for a period of twelve months, thus covering next winter, a period in 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–, and subsequently, a monthly increase of five euros/MWh until the end of the measure.