The wholesale electricity price is set to rise by 2.53% this Wednesday compared with today. Data from the Iberian Energy Market Operator (OMIE) and compiled by Europa Press show that €184.57 per megawatt-hour (MWh) will stay below €200/MWh for the fifth straight day.
On Wednesday, the maximum hourly price will reach €227.98/MWh between 07:00 and 08:00, while the daily low of €155/MWh is expected between 16:00 and 17:00.
Compared with the same day last year, the average price for this Wednesday will be 140.83% higher than €61.09/MWh on 25 May 2021.
Pricing in the pool directly influences the regulated PVPC rate, which covers about 11 million households and serves as a benchmark for the other 17 million contracts in the free market.
In 2021, the National Markets and Competition Commission (CNMC) confirmed that around 1.25 million people moved from PVPC to a fixed-price free-market plan as part of the price surge in the sector.
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GAS COVER: 15% DISCOUNT FOR THE AVERAGE CONSUMER
On 14 May, the Official State Gazette published a Royal Decree establishing a mechanism to cap gas prices used for electricity generation at an average of 48.8 MWh for a year, providing relief for the upcoming winter when energy costs tend to rise.
Although issued as a Royal Decree, the measure awaits formal approval from Brussels and will be implemented through a ministerial order.
Under the plan, the government estimates a discount of 15.3% for the average PVPC consumer during the 12 months following the cap on gas-derived electricity. The decree was obtained by Europa Press.
For industrial users exposed to spot prices, the government projects reductions of roughly 18–20% in the first month of the mechanism, with smaller but meaningful savings expected in the subsequent months.
The move is aimed at slowing price increases, curbing inflation, and reducing gas price volatility linked to the Ukraine conflict, while also supporting the reform of the regulated tariff and its price references for the futures market.
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STABILITY SINCE STABILITY
When the conflict in Ukraine began on February 24, wholesale prices stood at €205.6/MWh. Since then, prices climbed and hit a peak on March 8 at €544.98/MWh. Afterward, prices hovered near €250/MWh from mid-March and have fallen below €230/MWh in the most recent days.
MARCH: THE MOST EXPENSIVE MONTH IN HISTORY
The price surge since the start of the crisis pushed March to record levels. The average wholesale price for March stood around €283.30/MWh, marking it as the costliest month to that point, with January and December 2021 showing notable movement as well.
Here is how the new electricity tariff is shaping up
Wholesalers influence the PVPC, the regulated tariff that covers roughly 11 million electricity customers and acts as a baseline for the 17 million who contract elsewhere. The ongoing Ukraine-Russia conflict could push energy costs higher in coming weeks, especially gas, as imports to Europe face potential slowdowns due to sanctions. To cushion the impact on households, the government extended the VAT reduction on electricity bills through late June. Higher prices across Europe are driven by global market costs and the rising value of gas used in efficient power plants, which helps set the market price most hours through CO2 emission rights trading.
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To soften the impact of rising prices, the government extended the temporary tax relief on electricity bills for four additional months. The broader price pressures reflect international market costs and CO2 rights values. The ongoing conflict could push prices higher in the weeks ahead, with gas imports to Europe possibly slowed by sanctions.
2021 ended as one of the most expensive electricity years, with a rich upward swing in the pool prices. The average daily market price reached new highs, and early 2022 saw continued volatility. The government extended the electricity tax relief through April 30 to protect consumers, with VAT reductions and special electricity tax also extended, while some production-related taxes are scheduled for a later end date.