The average electricity price is edging lower yet remains above the 214 euro per megawatt hour mark. The wholesale market shows a slight dip on Friday, down 0.11 percent from Thursday, but the reading still sits above the 214 euro/MWh threshold.
Based on data from the Iberian Energy Market Operator, the Friday average is 214.5 euro per MWh, roughly 24 cents higher than Thursday’s 214.74 euro/MWh.
For context, the day’s peak is anticipated to reach 240 euro per MWh between 23:00 and 12:00, while the lowest point is forecast around 172.44 euro per MWh, with the overall Friday price trend lifting by a notable margin compared with the previous year. The year-on-year comparison shows the Friday average substantially higher than the 168.8 percent increase seen in 2021, reflecting a continuing upward momentum in prices.
Pool prices directly influence the regulated rate, known as PVPC, which covers roughly 11 million households in the country and acts as a benchmark for the rest of the market where 17 million contracts are in the free market. Market data indicates that in 2021 about 1.25 million people moved from PVPC to a fixed-rate free-market option amid the ongoing rise in energy costs.
On May 14, the Official State Gazette published a Royal Decree that lays out a mechanism to cap the price of gas used for electricity generation. The cap targets an average of 48.8 euros per MWh over a twelve-month period to help shield the coming winter, a season when energy prices tend to climb. While the decree was issued, it awaits formal approval from Brussels and needs finalization under the Ecological Transition order before implementation proceeds.
Government calculations project a 15.3 percent discount for electricity consumers under the PVPC-regulated rate across the twelve months after the cap on gas generation takes effect. This discount is described in the impact report accompanying the decree law and is accessible for review by the public sector audience.
For industrial customers fully exposed to the spot price, the government’s discount on invoices is expected to range roughly between 18 and 20 percent. The discount trajectory is planned to vary month by month, with the first month showing a smaller reduction and higher relief in the later months as the mechanism stabilizes.
Despite these projections, doubts remain voiced by a government minister who oversees ecological transition and demographic matters. The minister notes a level of uncertainty about the exact magnitude of the price drop once the gas cap becomes active, while industry forecasts anticipate the Manager’s projections could place the decline anywhere from 15 to 20 percent.