The average electricity price for regulated rate customers connected to the wholesale market is set to rise this Monday by a substantial margin, 77.7 percent higher than Sunday when the price briefly dipped below the 100 euros per megawatt hour barrier for the first time since last April. This shift underscores the tightness in wholesale energy markets and the impact of policy measures on consumer costs as markets adjust to evolving supply and demand conditions.
Special pricing will hold steady at 160.57 Euro per MWh on Monday, according to provisional figures from the Iberian Energy Market Operator, with data compiled by Europa Press. This level highlights the divergence between the standard wholesale price and the special price cap that is in effect under the Iberian mechanism intended to moderate electricity generation costs amid volatility in gas prices.
As the price moves, the overall cost to consumers includes the blend of the pool price with the compensation component paid to gas-fired power plants. This combination is part of the Iberian exception policy, designed to limit gas‑driven costs in electricity production. The result is a blended approach where the pool price is only part of the total cost faced by consumers in the regulated rate and indexed-rate segments of the market.
At the auction, the wholesale market price, often referred to as the pool, averaged 119.77 euro per MWh for Monday. The session showed a high point of 218.60 euro per MWh between 20:00 and 21:00 and a low of 75.64 euro per MWh during the early hours between 02:00 and 03:00. These intraday fluctuations reflect the inherent volatility of energy markets and the impact of demand patterns, plant availability, and fuel costs on daily pricing dynamics.
To this pool price is added a compensation of 40.80 euro per MWh for gas companies. The measure means that consumers who benefit from regulated rates or indexed rates within the free market may see the cumulative effect of these charges reflected in their bills, illustrating how policy tools translate into price signals for households and businesses alike.
27.6 percent lower than the measure without protection
Without the Iberian exception mechanism approaching gas price for electricity generation, the price of electricity in Spain would run higher, and the daily average would land around 221.93 euro per MWh. That scenario would imply a gap of about 61.36 euro per MWh compared with the compensated rate for regulated tariff customers, resulting in a noticeable saving for those on regulated schemes yet still illustrating the broader volatility of energy markets.
The Iberian mechanism, which began operating on 15 June, places a cap on gas costs for electricity generation at an average of 48.8 euros per MWh for a full year. The framework is designed to shield consumers from sharp price spikes and to stabilize the market through the upcoming winter when energy prices are typically more pronounced. This approach aims to balance supply security with affordability for households and industry in a period of elevated energy risk.
Specifically, the Iberian exception groups together the gas route for electricity generation at an initial price of 40 euro per MWh for the first six months, followed by a monthly increase of five euro per MWh until the measure’s expiration. The staged adjustment is intended to maintain a predictable ceiling while allowing for gradual adaptation as market conditions shift and generation mix evolves over time.