Average wholesale electricity prices for this Monday show a modest uptick of 0.67% compared with Sunday, staying below 200 euros per megawatt-hour (MWh).
Data from the Iberian Energy Market Operator (OMIE) indicates the Monday average will be 194.94 euro per MWh, edging slightly above Sunday’s 193.65 euro mark. In practical terms, the day sees a peak around 21:00–22:00 at 235.8 euro/MWh and a low near 17:00–18:00 at 168.05 euro/MWh.
When looking at the year-on-year picture, the daily average for this Monday is higher than the 68.87 euro/MWh registered on June 6, 2021, marking a notable increase in prices compared with a year earlier.
Pool prices influence the regulated tariff, PVPC, which currently serves roughly 11 million households and acts as a benchmark for the 17 million customers who buy their energy in the free market. The CNMC has reported that in 2021 about 1.25 million people switched from PVPC to a fixed-price free-market rate as part of the ongoing energy price cycle.
The upcoming discussion around gas-related pricing mechanisms is timely. A Royal Decree published on May 14 outlines a cap mechanism aimed at averaging 48.8 euros per MWh for gas-fired electricity generation over a 12-month horizon, shielding households during periods of elevated wholesale prices. This cap targets the next winter and beyond, with implementation awaiting formal Brussels approval and the ministerial order that would put it into effect.
Under this scheme, the cap would reduce the average energy bill for consumers on PVPC by about 15.3% over the 12-month period following its application. For industrial users fully exposed to spot prices, estimates suggest reductions of roughly 18–20%, with the first month potentially seeing a 15–17% cut and the following year around 13–15%.
Even with optimistic projections, Minister Teresa Ribera acknowledged some uncertainty in calculating the exact impact of the gas cap, but officials anticipate a price decrease in the 15–20% range. Analysts warn that, in the short term, the extension of the gas cap could add around 600 million euros to costs in Spain relative to neighboring Portugal, highlighting the regional variations in policy design and market exposure.
Market mechanics surrounding gas and electricity futures continue to shape the sector. The broader picture shows continued debate about how electricity prices relate to gas prices and how regulatory measures will influence long-term affordability for households and industry alike.
The electricity price environment also includes a calculator that lets users see how individual devices influence the cost per kilowatt-hour. A simple click can reveal the per-kWh price for any device, making it easier to understand usage impact in real time.
Since late February, the wholesale market has endured a volatile period tied to geopolitical events. In late February, prices hovered around 205.6 euro/MWh, with a dramatic spike in early March reaching a record high of 544.98 euro/MWh. While March marked unusually high activity, the subsequent weeks saw prices ease, fluctuating around the 250 euro/MWh mark and recently dipping below 230 euro/MWh.
These dynamics fed into a historically costly March, where the average price for the month hovered around 283.30 euro/MWh. Through much of the period compared to December 2021, the market remained elevated, reflecting ongoing energy-market stress and the influence of CO2 emission rights trading on hourly prices.
Looking ahead, wholesalers continue to affect the regulated tariff while the broader energy framework remains sensitive to international developments. The Ukraine-Russia conflict has the potential to push prices higher, particularly for gas, and European Union sanctions may influence supplies. In response, the government has extended tax relief on electricity bills through a defined horizon, aiming to cushion consumers from ongoing price pressures.
The energy mix and policy choices help explain why wholesale prices have behaved as they have. Higher global gas costs and shifts in CO2 rights markets contribute to the day-to-day volatility seen in the pool and impact what households pay on monthly bills.
To further support consumers, a series of measures have been announced to soften the impact of price rises. Among them is the temporary VAT reduction from 21% to 10% and a lowered special electricity tax, extended through a specific date, with other temporary relief measures set to continue under existing government programs.