The average electricity price for customers on a regulated rate connected to the wholesale market is expected to remain stable this Saturday, with a small decrease of at least 0.016% from Friday. The maximum price reaches up to 235.5 euros per megawatt hour (MWh), according to provisional data from the Iberian Energy Market Operator and compiled by Europa Press.
The price results from combining the wholesale market auction average with the compensation that demand pays to combined cycle power plants under the Iberian exemption designed to limit gas costs for electricity generation.
At auction, the average price in the wholesale market, known as the pool, was 135.53 euros per MWh on Saturday. The highest price during the period from 10:00 to 12:00 is forecast to reach 180 euros per MWh, with a minimum of 112.3 euros per MWh expected between 12:00 and 13:00.
To this pool price, a compensation of 99.97 euros per MWh is added. This amount is paid to gas companies, while consumers benefiting from the measure, those on the regulated tariff (PVPC), or taxpayers ultimately cover the cost. In the free market, the rate is indexed and moves with market conditions.
22% less than applying the measure
Without the Iberian exemption mechanism that caps gas costs for electricity generation, the price in Spain would average around 301.83 euros per MWh. That represents roughly 66.3 euros per MWh more than the compensation paid to those on the regulated rate, meaning the measure reduces costs for consumers by about 22% on average.
The Iberian mechanism began on 15 June and places a cap on gas prices used for electricity generation, averaging about 48.8 euros per MWh over a twelve‑month period. This approach provides protection into the winter months, a time when energy prices tend to rise.
Specifically, the Iberian exemption outlines a schedule for natural gas costs used in electricity generation. The price is set to rise by 40 euros per MWh in the first six months and then increase by five euros per MWh each month thereafter until the measure ends.