The first effect of the Iberian exception is already known, after the first auction held and with a price cap of 40 euros per megawatt (MWh) for the gas used to produce electricity, the market price that will be paid tomorrow Wednesday for the MWh of electricity in the wholesale market will be 49 euros lower than this Tuesday.
Thus, it can be seen on the website of the Iberian Energy Market Operator (OMIE) that after the auction it has left the average price of MWh at 165.59 euros, compared to the 214 paid this Tuesday, a reduction of 22.6%.
The time slot in which electricity will be more expensive on Wednesday will be between 1:00 and 2:00 in the morning, at which time the MWh has marked a price of 197.17 euros, while the lowest will be between at 4:00 p.m. and 5:00 p.m. when it will be paid at 144.17 euros. In this way, the price is below 200 euros per MWh in all time slots.
The measure comes into force in the midst of a heat wave when electricity consumption in homes and businesses is skyrocketing due to increased use of air conditioning.
Those who will first notice this measure on the invoice will be 37% of consumers whose receipts are linked to the PVPC regulated market, to whom the new reduced price will be applied starting tomorrow.
The fall of this first price with the new mechanism is in the range of the average reduction estimated by the Government that will vary between 15% and 20% in the whole of a full month of consumption.
Despite this “joy”, the price of MWh of electricity will be 82% more expensive tomorrow than the 90.95 euros it marked a year ago. Although it should also be remembered that the escalation of the energy crisis that began in July had not yet begun. It is to be hoped that the impact will be more remarkable when those dates are reached.
Electricity market experts agree that this is one of the measures designed by the Government that will have the greatest effect on the objective of reducing consumers’ electricity bills. Doubts are growing about how long Brussels is going to allow its application to the extent that it could distort the unity of the market in Europe.
For now, the European Commission has given the go-ahead for it to be in operation for 12 months, until May 31, 2023.
During that time, the average cap that will be applied to the price of gas will be 48.8 euros per MWh, starting during the first six months with a cap of 440 euros MWh and ending at 70 euros MWh.
