The electric market experienced a notable drop this Wednesday, with the wholesale price moving to 217.42 euros per megawatt hour (MWh). The adjustment is tied to the results of auctions in the wholesale pool and to the gas price cap that reimburses utilities relying on this resource.
Data from the electricity market operator OMIE and the Iberian Gas Market (Mibgas) show that the price paid by consumers under a regulated rate will be about 52 euros lower than the 269.54 euros previously observed. If the gas cap had not been applied to electricity generation, the payment per MWh would have been higher.
This price marks the fifth lowest level since July 1 and sits around 60% below the peak reached on March 8, when prices hit 544.98 euro/MWh, a record seen shortly after the onset of the crisis in Ukraine.
The decline comes amid ongoing energy instability across Europe, prompting the European Commission to call for an urgent response to the electricity market. The situation could be worsened by the Kremlin’s decision to halt the Nord Stream gas pipeline indefinitely.
Tomorrow, the major European economies are expected to maintain historically high price levels due to Russia’s invasion of Ukraine, though a broad, albeit modest, decline in prices is anticipated.
The pricing in Portugal mirrors Spain’s due to the Iberian market structure, with the gas cap also applied under the so-called Iberian exception. The highest projected price for the day is in Italy, with forecasts around 483.26 Euro/MWh, while France sees prices near 468.96 euro/MWh.
Germany is projected to see an increase to 462.47 euro/MWh, whereas the United Kingdom markets draw a comparison with approximately 305 euros per MWh when converted from pounds per MWh.
Across the Iberian Peninsula, the applied gas cap keeps the auction price aligned with Spain, reflecting the shared market framework between the two neighbors.
Auction and setup
If only wholesale market results are considered, excluding the gas cap adjustment that benefits facilities using the resource, the electricity price would drop by roughly 37 percent, leveling at around 106.56 Euro/MWh.
In line with the time zones and excluding the adjustments mentioned earlier, the highest price is expected between 21:00 and 22:00, around 189.15 Euro/MWh, while a daily low of about 48.42 euro/MWh is projected between 16:00 and 17:00.
It is crucial to add that these figures exclude the costs associated with adjusting gas-fired power plants. Those costs depend on the volume of gas required and the overall system price, and they influence households as well as beneficiary companies.
For tomorrow, the temporary average price for consumers is projected at 110.86 Euro/MWh, with the final price settled at 217.42 Euro/MWh, roughly double the level seen a year ago.