Iberian electricity price and the gas-cost cap: what this means for regulated-rate customers in Europe and implications for North American markets

The average electricity price for customers on regulated rates, linked to the wholesale market, is set to rise by 0.8% this Saturday, or about Friday, reaching 303.73 euros per megawatt hour (MWh) according to provisional data from the Iberian Energy Market Operator (OMIE) compiled by Europa Press. This figure reflects the combined effect of the wholesale market auction and the additional compensation paid to gas-fired plants as part of the Iberian exemption designed to cap gas costs for electricity generation (OMIE data, as cited by Europa Press). In the wholesale market, often referred to as the pool, the average price stood at 152.32 euros per MWh on Saturday. The price trajectory shows the day’s peak occurring between 22:00 and 23:00, while the lowest point is recorded between 16:00 and 17:00 at 118.25 euros per MWh. The daily price thus moves within a broad spectrum before the eventual alignment with the compensation layer added to gas generators (OMIE figures; context provided by Europa Press).