On Sunday, April 16, between 11.00 am and 6.00 pm, the use of electrical appliances is free for seven hours. Therefore, the Spanish will pay nothing for electricity. Despite the fact that the average electricity price is rising by almost 17%, Sunday‘s average rate is one of the lowest in April.
The price for electricity was free for seven hours this Sunday. This applies to customers with a so-called ‘tarifa regulada’ (fixed rate) and only between 11.00 am and 6.00 pm on Sunday 16 April. Around this period, however, the energy price is far from free; today the energy price rises by almost 17% to €25.41/MWh. Between 10.00 pm and 11.00 pm.on Sunday evening, the maximum rate will even rise to €127.85/MWh.
Low rates after significant fluctuations in Spain
Since the war in Ukraine, the prices for gas, water and light have fluctuated enormously. The average energy price to date in April is €58.79/MWh. Yet this is about a third of the average rate of €213/MWh that was recorded the same month in 2022.
Spain can fall back on ‘Iberian exception’ until the end of 2023
Despite the fact that prices show a downward trend, Spain can also fall back on the so-called ‘Iberian exception’. This has also been extended until December 31, 2023. This mechanism means a price cap that was set in June 2022 and could increase by a maximum of €5 per month since then. These agreements have been in force since 15 June 2022 in Spain and Portugal. It maximises the price of gas for electricity generation in order to lower the price of electricity.
It has been agreed from April that the price will be allowed to rise by €1.10/MWh so as not to exceed €65/MWh. For the month of April, the limit has been set at €56.10/MWh. At the moment, the mechanism of the Iberian exception has not had to be applied as the gas price has fallen below the established thresholds.