Average electricity prices for customers under regulated rates tied to the wholesale market are forecast to rise by 27.63% this week, reaching up to €243.95 per megawatt hour (MWh). This would mark the highest level observed in the past two months since early October.
In the day-ahead auction, the wholesale market price, known as the pool, averaged €189.81 per MWh this Sunday. It is expected that the maximum price will hit €256.68 per MWh between 20:00 and 21:00. Provisional figures from the Iberian Energy Market Operator (OMIE), reported by Europa Press, also show a daily low of €168 per MWh, occurring between 04:00 and 06:00.
To this pool price, a surcharge applies to be paid to gas suppliers, regardless of whether customers benefit from the measure, belong to the PVPC regulated tariff, or operate in the free market. For this Sunday, the indexed rate adds €54.14 per MWh.
19.4% less
If the Iberian exemption mechanism limiting gas prices for power generation had not been in place, the average electricity price in Spain would hover around €302.66 per MWh for regulated customers who bear the cost. The current framework means consumers in both the regulated and market-based sectors will see costs reduced by roughly 19.4% on average.
The Iberian mechanism, activated on 15 June, sets the price of natural gas used for electricity generation. It has resulted in an average cost of about €48.8 per MWh over a twelve-month period, shaping the outlook for the winter when energy prices typically peak.
Specifically, the Iberian exception outlines a pathway for gas used in power production at €40 per MWh for the first six months, until 15 December, followed by a monthly increase of €5 per MWh for the remainder of the measure.
In a Canadian or American context, similar wholesale-market dynamics can influence retail electricity pricing, with regional regulators and market operators shaping day-ahead pricing and related surcharges. The overarching model differs by jurisdiction, but the principle remains: wholesale movements drive the cost seen by consumers and can be mitigated by market interventions and stabilization mechanisms. The figures above illustrate how an energy policy framework can translate into tangible price signals for households and businesses across markets, offering a snapshot of how Europe manages volatility through coordinated mechanisms linked to gas costs and generation pricing. (Source: OMIE, Europa Press reporting)