Average electricity price for regulated rate customers in the wholesale market is set to rise to €113.72 per megawatt hour this Tuesday, marking a 41.6% jump from Monday.
The trend shows light prices breaking through the €100/MWh barrier once again, a level not seen since December. On Christmas Day, the cheapest price dipped to €10.63/MWh, the lowest since May 2021.
In the auction, the average price of electricity in the wholesale market, known as the pool, stands at €109.49/MWh for Tuesday. The hourly window between 03:00 and 04:00 will see a minimum of €62.09/MWh, while the peak between 16:00 and 19:00 could reach €164.69/MWh. These figures come from provisional data of the Iberian Energy Market Operator and were reported by Europa Press.
Additionally, compensation for gas companies is layered onto this pool price and is charged to consumers who benefit from the measure, including those on the regulated tariff (PVPC) or those with indexed rates even if they are in the free market. On Tuesday, compensation is set at €4.23/MWh according to provisional data.
30% reduction
In the absence of the Iberian exception mechanism that caps gas prices for electricity generation, Spain’s average electricity price would be about €162.20/MWh. This would leave regulated-rate customers paying on average around 29.9% less due to the compensation framework that is currently in place.
The Iberian mechanism, which began operation on 15 June, caps gas prices for electricity generation at an average of €48.8/MWh over a twelve-month period. This measure is designed to shield consumers during the coming winter when energy costs tend to rise.
Specifically, the Iberian exemption sets a path for natural gas used in electricity generation at €40/MWh in the first six months, followed by an increase of €5/MWh each subsequent month, continuing through the end of the measure.
Analysts note that these steps are designed to stabilize household energy bills while the broader European market adjusts to shifting supply and demand dynamics. Data cited from the Iberian Market Operator via Europa Press provides the provisional figures used in Tuesday’s assessments, highlighting the ongoing balancing act between price signals in the wholesale market and consumer protections embedded in the regulatory framework.