Electricity price holds steady at 10 euros on Monday, with a 9-hour tariff-free period.
The Electricity Market Price: What You Need to Know
Here's the lowdown on the wholesale electricity market price, popularly known as the 'pool'. On Monday, it's set to hover around 10.89 euros per megawatt hour (MWh), dipping a few cents from Sunday's 11 euros.
For a significant portion of Monday, electricity will be free or even cheaper, with costs hovering between 11:00 AM and 8:00 PM at 10 euros/MWh. Negative prices will reemerge during these hours, with a minimum of -4 euros/MWh expected between 3:00 PM and 6:00 PM.
These negative wholesale prices may not translate directly to consumer bills for those on the regulated tariff, as there are fixed costs like tolls, charges, and system adjustments to account for.
Travel back in time to 7:00 AM and 9:00 AM on Monday, and you'll find the day's maximum price at a steep 35 euros/MWh. night owls should watch out for a spike between 9:00 PM and 11:00 PM, with the price hitting 28.1 euros/MWh.
Meanwhile, Portugal has seen an average electricity price of almost 44 euros/MWh, nearly quadrupling the cost in the Spanish market, following a precautionary suspension of the energy exchange between the two countries.
Now, let's delve a bit deeper into the calculation of the PVPC (Precio Voluntario para el Pequeño Consumidor). This regulated electricity tariff for small consumers in Spain consists of real electricity market prices and components.
The PVPC price refers to the final market price of electricity, incorporating the wholesale market prices (day-ahead market prices) that vary hourly. Additional costs like operator fees, network losses, and tariffs for electricity distribution and transmission ensure all supply and delivery components are covered within the tariff.
From 2024 onwards, the calculation of the PVPC includes medium and long-term pricing baskets to reduce volatility and reliance on short-term spot market prices. This blended approach offers a more stable and predictable tariff for consumers.
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Stay tuned for more insights on electricity prices, wholesale electricity markets, OMIE, Europa Press, Portugal, Spain, zero cost, and more.
[1] Sources- https://www.esios.es/- https://www.energy.gov.es/documentos/gas-electricidad/la-prueba-de-carga-2022-2023-en-spain
[2] Additional Resources- https://www.enecomunicacion.com/conoce-el-precio-voluntario-para-el-pequeo-consumidor-pvpc-2/- https://www.rne.es/media/co/user/media/libros/plan_estrategico_2020/28-poltica-del-comercio-de-electricidad-en-el-mercado.pdf
- On Monday, the wholesale electricity market price for sports events or industries might dip as low as 10 euros per megawatt hour (MWh), but negative prices could rise to -4 euros/MWh during specific hours, indicating a surplus of energy in the market.
- Despite these cheaper wholesale electricity prices, a consumer's final electricity bill may differ due to various costs like operator fees, network losses, and tariffs for electricity distribution and transmission, as seen in the PVPC (Precio Voluntario para el Pequeño Consumidor) in Spain.
- In contrast, Portugal has experienced an average electricity price almost four times higher than Spain, reaching nearly 44 euros/MWh, following a precautionary suspension of the energy exchange between the two countries.
- By 2024, changes in the calculation of the PVPC are expected, incorporating medium and long-term pricing baskets to provide a more stable and predictable tariff for consumers, possibly reducing the volatility and reliance on day-ahead market prices within the industry.
