The current trend in electricity pricing shows a notable dip for regulated-rate customers linked to the wholesale market this Thursday. The wholesale ceiling falls to as much as 116.56 euros per megawatt-hour (MWh), marking a 3.7% decrease from Wednesday’s level of 121 euros per MWh. This movement reflects ongoing shifts in the Iberian energy market as suppliers and regulators respond to broader supply dynamics and wholesale signals.
During the auction phase, the average price for electricity in the wholesale pool on Thursday settled at 109.19 euros per MWh. The day’s price fluctuations are pronounced: the floor price sits at 61.97 euros between 04:00 and 05:00, while the peak, observed between 19:00 and 20:00, reaches 177.98 euros. Such intraday volatility is typical in high-demand periods and is closely watched by households and businesses relying on the pool price as a benchmark for their energy costs.
On top of the pool price, consumers benefiting from the regulated tariff (PVPC) or those on a free market with an indexed tariff will also receive a compensation of 7.37 euros per MWh for this Thursday. This top-up is designed to cushion the impact of wholesale price movements and provide a measure of price stability for regulated consumers, helping to bridge the gap between market highs and consumer bills.
26% less than applying the Iberian exception
Without the Iberian exception mechanism in place to cap the gas component used for electricity generation, average electricity costs in Spain would run higher. In such a scenario, prices would approach 147.44 euros per MWh, translating to roughly 31 euros more per MWh than the current compensation provided to regulated tariff customers. That gap would mean customers could face bills that are about 21% higher on average than they do under the compensated regime, underscoring the impact of price protection measures on household budgets.
The Iberian mechanism, implemented on 15 June, sets a ceiling on the gas price used for electricity generation at an average of 48.8 euros per MWh for a full year. This framework is designed to cover the tougher winter period when energy prices tend to rise and volatility tends to spike, offering a steadier planning horizon for both households and businesses that depend on predictable energy costs.
In practical terms, the Iberian exception outlines a staged pricing path for natural gas associated with electricity generation. The plan starts with a target of 40 euros per MWh for the first six months and then gradually increases by five euros per MWh each month until the measure’s expiration. This stepped approach helps dampen sharp price spikes and provides a predictable baseline for the electricity market during critical demand windows.