The average price of electricity for regulated tariff customers connected to the wholesale market soared this Monday up to 102.63 euros per megawatt hour (MWh), which represents an increase of 260.36% compared to 28.48 euros/MWh this Sunday.

In the auction, the average price of electricity in the wholesale market –the so-called ‘pool’- will be this Monday at 102.63 euros/MWh. The price Minimumof 49.25 euros/MWh, will take place between 3:00 pm and 5:00 pm, while the price maximum will register between 20:00 and 21:00, when it rises to 187.60 euros/MWh.

To this pool price is added compensation for the gas companies, which must be paid by consumers who benefit from the measure, consumers of the regulated tariff (PVPC) or those who, despite being in the free market, have an indexed tariff, which for this Sunday will be 0 euros/MWh, a situation that has been repeated since February 27th.

The average price of electricity in the monthly accumulated until March 27th stood at 94.42 euros/MWh, that is, around 37.50 euros less than the 132.01 euros/MWh of the same period in February.

The ‘Iberian mechanism’

He ‘Iberian Mechanism’, which entered into force on June 15, limits the price of gas for electricity production to an average value of 48.8 euros per MWh for a period of twelve months, thus covering the coming winter, a period in which energy prices are more expensive.

Specifically, the ‘Iberian exception’ paves the way for natural gas to produce electricity starting at a price of 40 euros/MWh in the first six months, and subsequently, a monthly increase of 5 euros/MWh until the end of the measure. During the whole month the price will be 55 euros/MWh.