The wholesale electricity price is set to reach its lowest point since February 19 this Friday, marking the third straight drop and a reduction of almost 28 percent from this Thursday.
Specifically, the average price of the market pool for Friday is expected to be 154.7 euros per megawatt-hour (MWh). This sits roughly 60 euros below yesterday’s figure of 214.79 euro/MWh, according to data published by the Iberian Energy Market Operator (OMIE) and compiled by Europa Press.
The maximum price for Friday between 10:00 and 23:00 is projected at 252.08 euro/MWh, while the lowest values are anticipated between 16:00 and 18:00, around 7 euro/MWh.
Beyond these two hours, there will be periods of notably cheap prices, especially in the pool window between 15:00 and 16:00 and again between 18:00 and 19:00, when prices are seen at around 20 euro/MWh.
Compared with a year earlier, this Friday’s pool price is reported to be 154.7 percent higher than April 8, 2021, when the rate stood at 69.78 euro/MWh.
Pool prices directly influence the regulated tariff, known as PVPC, which covers roughly 11 million households in the country and serves as a benchmark for the other 17 million customers purchasing in the free market. The National Markets and Competition Commission (CNMC) noted that in 2021 about 1.25 million people shifted from PVPC to a fixed-price free-market rate amid a rising energy price environment.
On March 29, the Government approved a national plan aimed at mitigating Ukraine-related effects, including extending the electricity tax relief on bills through March 30 and expanding the electricity social coupon to reach up to 1.9 million beneficiary households.
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The governments of Spain and Portugal submitted a preliminary proposal to the European Commission to set a gas reference price of 30 euros per megawatt to help lower electricity prices.
Teresa Ribera, the Third Deputy Prime Minister and Minister for the Ecological Transition, clarified that this is a joint proposal under discussion with European authorities. She noted that if the offer is accepted, the electricity price could be capped within three or four weeks, urging patience while technical concerns are addressed to ensure proper operation.
If the proposal advances, it will affect pool prices by influencing daily gas-fired combined-cycle plants’ offers in the wholesale market, among other factors.
What does separating electricity prices from gas mean?
The electricity price calculator shows the cost per kilowatt-hour when users click on any device. It demonstrates how gas costs interact with electricity prices in the market and why gas prices can drive wholesale rates higher during periods of tight supply.
Electricity price stability and market trends
Since the start of the Ukraine crisis in February, wholesale prices experienced a volatile rise. At the end of February the market hovered around a high level, with a notable peak in early March. Despite a recent easing, prices have remained elevated compared with pre-crisis levels, and the average price in March reached near-historic highs in some scenarios. In the current context, the average price for March remains significantly above the long-term average, reflecting ongoing supply and policy pressures.
New tariff structure and what it means for consumers
Wholesalers influence the PVPC, which covers about 11 million consumers and provides a reference for the remaining 17 million who purchase in the open market. The Ukraine-Russia conflict and related sanctions are expected to keep energy prices under pressure in the near term, particularly for gas. To cushion households, the government extended the tax relief on electricity bills through an upcoming period, and climate and energy policies continue to shape the cost landscape. The rise in prices across Europe is driven by higher international gas costs and the rising price of CO2 emissions allowances, factors that heavily influence wholesale prices across hours.
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To mitigate the impact of rising prices, the government continued the electricity tax relief for a period, complemented by broader price-stabilizing measures. The broader energy market dynamics—scarcity of gas, global gas markets, and CO2 trading—continue to push up rates. The long-term outlook depends on supply resilience, European-wide policy alignment, and the pace of energy transition investments.
Historical context and price evolution
For context, 2021 saw electricity costs set a record for a calendar year due to the surge in pool prices during the second half of the year. In January of the following year, the daily market price remained elevated, reflecting persistent energy-market tension and policy responses. The government has extended tax reductions in the tariff structure through a defined period to help consumers weather the price shocks, including reductions to the VAT and related charges, with certain production taxes temporarily paused as part of the broader stabilization effort.