The average electricity price for regulated rate customers connected to the wholesale market is expected to decline by 36.12% this coming Saturday through the following Friday, landing at €17.46. This marks the cheapest window since June 12, based on provisional data from the Iberian Energy Market Operator (OMIE) and reported by the EP.
The drop coincides with typical weekend patterns that bring lower demand, and a notable rise in wind generation capable of meeting about 26.6 percent of national needs. The price reflects the wholesale market auction average plus the compensation charged to gas-fired plants under the Iberian exemption. In other words, what consumers pay is shaped both by wholesale dynamics and the policy mechanism that screens the gas component involved in electricity generation.
During the auction, the wholesale market average, known as the pool, is set at 61.68 Euro/MWh for this Saturday. The price will peak between 21:00 and 22:00, with a high around 167.5 Euro/MWh and a low near 10 Euro/MWh between 11:00 and 12:00.
On top of the pool, there is a 115.78 Euro/MWh compensation paid to gas suppliers, a cost that is borne by regulated-rate (PVPC) customers and, ultimately, by taxpayers in the context of the system. In the free market, the regime is indexed, so variations occur more directly with market movements.
33.92% less
Without the Iberian exemption mechanism, which caps the price of gas used to generate electricity, Spain’s average electricity price would stand at roughly €268.55/MWh. That would imply higher overall costs for customers paying above the standard tariff, illustrating a potential reduction of about 33.92% when the exemption is in place.
The Iberian mechanism, introduced on 15 June, places a cap on gas for electricity generation at an average of €48.8/MWh over a twelve-month period, a design intended to buffer households and firms from sharp price spikes during the winter. In practical terms, this means a predictable floor and ceiling for generation costs, helping to stabilize consumer bills as energy markets respond to seasonal demand shifts.
Specifically, the Iberian exception outlines a staged path for gas used in electricity generation, with an initial rise of €40/MWh in the first six months and a gradual correction of €5/MWh each month thereafter through the duration of the measure. This structure is meant to balance market signals with affordability, even as wholesale prices fluctuate and supply conditions evolve.