The average electricity price for regulated-rate customers linked to the wholesale market is expected to dip slightly by 0.95% this Wednesday, extending through Tuesday, with a provisional figure of 238.3 € per MWh according to data from the Iberian Energy Market Operator (OMIE). This price reflects the blend of the wholesale market’s average auction outcome and the compensation that demand imposes on combined-cycle power plants under the Iberian exemption designed to curb gas costs for electricity generation.
In the auction, the wholesale market, known as the pool, is projected to average 137.4 Euro per MWh on Wednesday. The intraday dynamics show the day’s peak between 20:00 and 21:00. The lowest level is anticipated at 04:00 to 05:00, around 104.89 € per MWh, with a daily minimum of 187.93 € per MWh. These fluctuations illustrate how numerous factors—from generation mix to plant availability—shape the hourly prices that feed into consumer bills.
To the pool price, a compensation of 100.9 Euro per MWh is added. This amount is paid to gas companies as part of the mechanism, even though many consumers benefit from the regulated tariff (PVPC) or from taxpayer-supported policies. In contrast, the free market operates with an indexed rate that varies with market conditions. The interplay of these components helps determine the final price faced by households and businesses alike.
14.15% less
Without the Iberian exemption mechanism that caps gas prices for electricity generation, the Spanish electricity price would average about 277.58 € per MWh, implying an increase of roughly 39.28 € per MWh. As a result, regulated-rate customers would see a notable reduction—about 14.15% less on average—thanks to the subsidy and structural limits in place. The exemption acts as a bridge during periods of high energy costs, offering some relief to consumer bills as market conditions shift.
The Iberian mechanism, which started on 15 June, places a cap on the gas price used for electricity generation, averaging 48.8 € per MWh over a twelve-month window. This framework is designed to buffer the system during the coming winter months when energy prices tend to rise, providing a more predictable cost environment for households and businesses. In practical terms, the mechanism assigns a path for natural gas pricing for electricity generation with an initial uplift of €40 per MWh for the first six months, followed by a gradual, €5 per MWh monthly adjustment through the remainder of the measure. These steps are intended to stabilize prices while still allowing for market responsiveness to changing conditions, all within the broader European energy policy context. (Source: Iberian Energy Market Operator)