The average electricity price for regulated-rate customers connected to the wholesale market is set to rise to 144.73 euros per megawatt hour MWh on Tuesday January 3. This marks a jump of 26.7 percent from 114.24 euros per MWh the prior Monday.
New data confirms a clear upward trajectory in electricity costs early in the year. In contrast, last week the market dipped below 5 euros on certain days and even reached zero euros during some intervals.
Similarly, the Tuesday price will be the highest observed since the mid December peak when the price reached 186.73 euros per MWh.
During the auction the average wholesale price for electricity, known as the pool, stood at 138.79 euros per MWh this Tuesday. The lowest price was 113.63 euros, anticipated between 04:00 and 05:00, while the highest price occurred between 09:00 and 10:00, at 171.18 euros.
To this pool price there is an added compensation charged to gas producers. Consumers benefiting from the adjustment are PVPC customers or those in the free market with an indexed tariff of 5.94 euros per MWh for this Tuesday.
23 percent lower than the Iberian exception baseline
The absence of the Iberian exception mechanism to cap gas costs for electricity production would push Spain’s electricity price toward about 175.12 euros per MWh on average, roughly 30 euros per MWh higher than the typical regulated tariff. This implies an approximate advantage of about 17 percent for regulated-rate customers. [Citation: Iberian price-setting framework and its impact on domestic tariffs]
The Iberian mechanism is designed to shield winter energy costs by capping the gas price used for electricity generation at an average of 48.8 euros per MWh over a twelve‑month period starting June 15. This policy acts as a structural hedge during a season when energy markets tend to spike.
In practical terms, the mechanism also envisions a staged price path for natural gas used in power generation. The plan calls for an initial price of 40 euros per MWh for the first six months, followed by a monthly increase of five euros per MWh through the duration of the measure. This approach aims to provide clearer budgeting for households and businesses while dampening abrupt price swings in a volatile market. [Citation: Details of the Iberian mechanism timeline and pricing steps]