Average electricity price for regulated-rate customers in the wholesale market shows a slight decline this week. After starting from 93.86 Euro per MWh on Thursday, it is projected to fall to 89.5 Euro per MWh on Friday, marking a 4.65% decrease.
In the wholesale market auction known as the pool, the typical price for electricity on Friday is forecast at 88.48 Euro per MWh. The intraday range is clear: the lowest price is expected between 04:00 and 05:00 at 38.7 Euro/MWh, while the top of the day is anticipated between 20:00 and 21:00 at 154.7 Euro/MWh.
On top of the pool price, there is an additional charge designated as compensation to gas companies per MWh. This amount is paid by consumers who benefit from the measure, including those on regulated rate (PVPC) and some with indexed rates, at a rate of 1.02 Euro per MWh for Friday.
26% less
Without the Iberian exemption mechanism, which caps the price of gas used to generate electricity, the overall electricity price in Spain would average about 121.15 Euro per MWh. That would be roughly 31.65 Euro/MWh higher than the compensation provided to customers, meaning a reduction of about 26.13% on average under the current scheme. This illustrates the relief that the exemption brings to consumer bills in a volatile market.
The Iberian mechanism, which began on 15 June, limits the average gas price used for electricity generation. It sets a ceiling of 48.8 Euro per MWh for a full year, a measure designed to shield households and businesses from severe price spikes during the winter period when energy costs typically climb.
Concretely, the exemption outlines a pricing path for natural gas used in power generation: 40 Euro/MWh for the first six months, followed by a monthly increase of five Euro/MWh through the remainder of the period. This staged approach is intended to balance affordability with supply dynamics.
The Spanish government has requested Brussels to extend the Iberian exemption at least through the end of 2024, proposing a price corridor of roughly 45 to 50 Euro per MWh with a cap similar to the current arrangement. This request reflects ongoing concerns about energy security and consumer protection as market volatility continues to influence bills.
Analysts note that the interaction between the pool price, the PVPC framework, and the Iberian mechanism creates a nuanced price landscape for households and businesses. While the pool price serves as a benchmark for wholesale trading, the additional compensation and exemptions influence final retail costs, helping to mitigate immediate price shocks for end users. These dynamics are closely watched by policymakers and market participants, who seek stability without discouraging investment in gas and renewable generation.
In summary, the latest forecasts indicate a modest weekly decline in wholesale electricity prices for regulated-rate customers, reinforced by the Iberian exemption’s cap on gas for power generation. The combination of pool prices, compensation charges, and regulatory mechanisms together shapes the pricing that Canadian and American readers may compare against local market structures, while the Iberian approach offers a relevant case study in price containment during peak demand periods.
Sources and data referenced reflect market reports and official notices related to wholesale electricity pricing, the pool auctions, and the Iberian exemption framework. These updates help households and businesses understand how different policy levers interact to influence the costs seen on monthly energy bills.