Average electricity price for regulated rate customers connected to the wholesale market is projected to fall by 11.9 percent on Sunday compared with this Saturday. Provisional data from the Iberian Energy Market Operator, OMIE, as reported by Europa Press, indicate the price will be as high as €198.03 per MWh for the period in question.
This figure combines the wholesale market’s average auction price with the compensation that demand bears to gas-fired combined cycle plants under the Iberian exemption. This exemption is designed to curb gas costs for electricity generation and influence overall consumer charges. The calculation reflects both market dynamics and policy measures intended to stabilize consumer prices during periods of price volatility.
The wholesale market set price, known as the pool, for this Sunday is 113.09 euro per MWh. The price range is notable, with a maximum of 183.03 euro/MWh expected at a 10:00–23:00 window and a minimum near 80 euro/MWh observed between 10:00 and 11:00, illustrating daily fluctuations that affect bill outcomes for end users.
To this pool price, a compensation of 84.94 euro per MWh is added, directed toward gas companies to cover the cost of the Iberian mechanism. This compensation is passed through to consumers who benefit from the measure, including regulated rate (PVPC) customers and those with indexed rates within the free market, helping to cushion their bills during price swings. The mechanism’s intent is to balance supply costs with consumer protection, particularly when wholesale prices spike or decline unexpectedly.
21.4% less without action
Without the Iberian exemption, the average electricity price in Spain would likely stand around 252.11 euro per MWh. That scenario would translate to roughly 54 euro per MWh higher charges for the average bill, underscoring the impact of policy intervention. As a consequence, regulated-rate customers are forecast to see savings of about 21.4 percent on average, compared with a market without the exemption. This contrast highlights how policy tools can cushion households from sharp price movements in energy markets. [Analytical note based on OMIE projections]
The Iberian mechanism began operating on June 15 and continues to cap the price of natural gas used for electricity generation. The policy includes a staged price path, with an average of 48.8 euros per MWh anticipated over twelve months. This approach is designed to offer price stability through the upcoming winter months, a period typically marked by higher energy costs and market volatility. The strategy aims to protect energy affordability for families and small businesses while maintaining reliability in electricity supply. [Policy overview and operational schedule]
Specifically, the Iberian exception outlines a framework for natural gas that supports electricity generation. In the initial six months, the mechanism implies an increase of 40 euros per MWh, followed by a gradual reduction of five euros per MWh each month until the measure ends. The intent is to provide a balanced transition, giving markets time to adjust while preserving the goal of keeping consumer prices within reasonable bounds during periods of stress. [Regulatory outline and timeline]