The average price of electricity in the wholesale market will drop today, Tuesday, May 24, by 7.29% in the province of Santa Cruz de Tenerife (Tenerife, The Palm, La Gomera Y The iron) compared to yesterday’s price, specifically, up to the 180.01 euros megawatt hour (MWh), so it will remain below the level of 200 euros/MWh for the fourth consecutive day, according to data published by the Iberian Energy Market Operator (OMIE) and collected by Europa Press.
The maximum electricity price for this Tuesday will be between 9:00 p.m. and 10:00 p.m., with €220.3/MWh, while the minimum for the day, of 159.2 euros/MWh, will be recorded between 4:00 p.m. and 5:00 p.m.
Compared to a year ago, the half price of electricity for this Tuesday will be 167.08% more expensive than the 67.4 euros/MWh of May 24, 2021.
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 the Energyaround 1.25 million people switched from the PVPC to a free market rate at a fixed price.
gas cap
The Official State Gazette (BOE) published on May 14 the Royal Decree-Law establishing the mechanism to limit the gas price for electricity generation at an average of 48.8 euros per megawatt/hour (MWh) over a twelve-month period, thus covering the coming winter, a period in which energy prices are more expensive.
However, the mechanism, despite its publication as Royal decree law, it is pending to have the formal decision of Brussels and to be initialed by an order of the minister for its application.
The Government limits in its calculations to 15.3% the discount to the average electricity consumer covered by the PVPC regulated rate during the 12 months of application of the ceiling approved for the generation of electricity from natural gas, as stated in the impact report that accompanies the decree law and to which Europa Press has had access.
For the industrial consumer, fully exposed to the spot price, the Government estimates a reduction in the invoice of between 18% and 20%, ranging between 15% and 17% in the first month of the mechanism, and between 13% and 15% in the last.
The measure will thus help to contain price escalation and inflation and, above all, will act as a firewall against the volatility of gas prices derived from the war in ukrainewill also facilitate the reform of the regulated rate –the so-called PVPC–, incorporating price references for futures markets.
