The electricity traded in the Iberian market fell by almost 23% in price in the first application of the natural gas ceiling approved by Portugal and Spain. The price registered in the Spanish daily market for tomorrow was set at 165 euros per MW hour, which contrasts with the average value of 214 euros per MW hour determined for the electricity delivered this Tuesday.
The time slot with the most expensive energy is between 12:00 and 01:00, reaching more than 194 euros per MW hour, while the lowest price of 144 euros will be applied to the energy to be delivered between 15:00 and 4:00 p.m.
This decrease is in line with the estimate advanced by the Spanish Government and will result in a decrease in the bill to be paid by Spanish families exposed to the market from next July. In Portugal, the benefits will be felt by customers who must review their contract prices in this context. But to evaluate the impact of this temporary measure —which will last one year— we will have to wait longer.
The Iberian mechanism approved last week sets an initial limit of 40 euros per MW hour for natural gas used in electricity production, a technology that sets the price of all energy sold on the Iberian wholesale market.
Brussels approves Iberian gas ceiling until May 2023. The impact in Portugal will be 2,100 million
Source: Observadora
