The average price of electricity in the wholesale market will drop this Saturday, May 7, 6.4% compared to yesterday in the province of Santa Cruz de Tenerife (Tenerife, The Palm, La Gomera Y The iron) until reaching the 184.86 euros per megawatt hour (MWh), thus returning to the levels of last Sunday.
Specifically, those 184 euros/MWh of the average price of the ‘pool‘ for today they represent 13 euros less than the 197 euros/MWh on average this Friday, according to data published by the Iberian Energy Market Operator (OMIE) and collected by Europa Press.
The minimal price of light for this May 7 will be given between 2:00 p.m. and 3:00 p.m.with €145.23/MWh, while the maximum for the day will be 229 euros/MWh and will be recorded between 9:00 p.m. and 10:00 p.m.
Compared to a year ago, the average price of electricity for this Friday it will be 151% more expensive than the 73.5 euros/MWh of May 7, 2021. Compared to the same day last week, the drop is just 0.85%.
The prices of the ‘pool’ have a direct impact on the regulated rate –the so-called PVPC–, to which almost 11 million households in the country are included, and serve as a reference for the other 17 million that have contracted their supply on the free market.
In fact, the National Commission of Markets and Competition (CNMC) has found that in 2021, within the framework of the upward spiral of energy, around 1.25 million people they went from the PVPC to a rate in the free market at a fixed price.
53% more expensive than a year ago
Last April, the average user’s electricity bill reached 124.90 euros, 53.2% above the 81.55 euros of the same month last year, being the fifth highest in history, according to data from Facua-Consumers in Action.
However, the receipt registered a decrease of 29.3% in April with respect to March, in which the monthly historical record was produced in the price of electricity in the wholesale Market, with more than 283 euros/MWh.
‘Iberian exception’
Last week, the governments of Spain and Portugal signed an agreement with the European Comission to put a cap on the price of gas in the wholesale electricity market of the Iberian Peninsulawhich will stand at an average of 50 euros/MWh in the next twelve months.
Pursuant to the agreement reached with the Community Executive, which must now be approved by the Council of Ministers, foreseeably next week, the reference price for gas will initially be set at around 40 euros/MWh and will mark a average price of 50 euros/MWh over the 12 months that it is in force, which is 20 euros more than the ceiling of 30 euros/MWh that they proposed at the outset Spain and Portugal.
In addition, on March 29, the Government approved a national plan to deal with the impact of the war in Ukraine that includes, among other measures, the extension of the tax reduction on taxes levied on electricity bills until the next June 30, as well as the extension of the electric social bond until it reaches 1.9 million beneficiary households.
An early and extraordinary update of the regulated remuneration regime of renewables, cogeneration and waste (Recore) with an adjustment of 1,800 million euros with which the charges of the electricity bill are lowered.
Another of the measures agreed upon by the Executive was an extension until June 30 of the gas reduction to reduce extraordinary profits in the electricity market, expanding its scope of application to energy contracted in a term and at a fixed price from the entry of the norm if said price is higher than 67 euros/MWh.
