The average electricity price in the wholesale market is projected to stay steady on Tuesday, mirroring Monday’s level. The figure stays above 208 euros per megawatt hour (MWh).
Specifically, the Tuesday pool average is forecast at 208.71 euro/MWh, just a touch below Monday’s 208.74 euro/MWh. These numbers come from data published by the Iberian Energy Market Operator and compiled by Europa Press.
The daily minimum price for Tuesday May 10 is expected to fall between 176.22 euro/MWh and the window 16.00 to 17.00, while the maximum may reach 237.95 euro/MWh, occurring between 08:00 and 09:00.
Compared with last year, the Monday average price stands out as substantially higher, at 252 percent greater than the 59.26 euro/MWh recorded on May 10, 2021.
Pool prices influence the regulated rate known as PVPC, which covers roughly 11 million households in the country and serves as a benchmark for other consumers. A separate group, about 17 million, operates under free-market conditions with varying terms.
In 2021, the National Markets and Competition Commission confirmed that around 1.25 million people moved from PVPC to a fixed-price free-market rate, a shift linked to the energy price surge during that period, according to regulatory reports.
April’s bill is 53% more expensive
In April, the average household electricity bill reached 124.90 euros, about 53.2 percent higher than the 81.55 euros from the same month a year earlier, according to data from Facua-Consumers in Action. The month still marks the fifth-highest on record in the historical series.
However, the bill declined by about 29.3 percent in April compared with March, which saw a monthly wholesale price spike beyond 283 euro/MWh.
Iberian exception
A few weeks ago the governments of Spain and Portugal reached a joint agreement and the European Commission has stepped in to cap wholesale gas pricing in the Iberian Peninsula. The measure is designed to average around 50 euro/MWh over the next year in the wholesale market.
Under the agreed framework with the Community Manager, the initial gas reference price is set near 40 euro/MWh, with an anticipated average of about 50 euro/MWh across the twelve-month period. The plan spans one year, exceeding the 30 euro/MWh cap previously suggested by Spain and Portugal by roughly 20 euros.
Additionally, on March 29 the government approved a national plan to counter climate-change effects and the ongoing war in Ukraine. The package includes extending the electricity bill tax relief until June 30 and expanding the electricity social bond to reach up to 1.9 million beneficiary households.
There was also an extraordinary update to the regulatory regime for renewable energy, cogeneration, and waste, known as Recore, which included a cut of 1.8 billion euros in electricity bill charges.
Another step announced by the administration extends the gas-protection measures until June 30 to curb extraordinary profits in the electricity market. The extension covers energy contracts with futures and fixed-price terms when the price exceeds 67 euro/MWh.