The average price for electricity charged to regulated-rate customers linked to the wholesale market is set to fall by 7.18% this Friday compared with Thursday, with a ceiling near EUR 235.54 per megawatt hour (MWh), based on provisional data from the Iberian Energy Market Operator (OMIE) as reported by Europa Press.
This marks the second consecutive day of relief for consumers tied to the pool price, following a week that saw higher costs earlier in the week. In this context, the regulation enters a moment where the wholesale price retreat aligns with the federal strategy to cushion households from sharp price swings.
The price level reflects the combination of the wholesale market auction average and the compensation paid by demand to the gas-fired plants under the Iberian exemption, a mechanism designed to cap gas costs for electricity generation.
In the auction, the wholesale market, often referred to as the pool price, determined the day’s average price. On Thursday, this average stood at EUR 135.24 per MWh. The day’s peak price is projected at EUR 164 per MWh between 22:00 and 12:00, while the daily trough is expected to dip to EUR 120.3 per MWh during the narrow window from 04:00 to 06:00.
The pool price, combined with the EUR 100.30 per MWh compensation, is charged to gas companies and then passed on to consumers benefiting from the Iberian measure, including those on regulated rate (PVPC) or those with indexed rates even while in the free market. (Source: OMIE)
21.3% less than applying the measure
Without the Iberian exemption, the average electricity price in Spain would be closer to EUR 299.29 per MWh, which would be roughly EUR 63.75 per MWh higher than the current compensation level for customers. Taken together, this means an approximate 21.3% reduction on average for end users. (Source: OMIE)
The Iberian mechanism, which began operating on 15 June, places a cap on the gas price used to generate electricity, targeting an average of EUR 48.8 per MWh over a twelve-month period to cushion the winter period when energy costs typically rise. In practice, this approach shifts some of the risk away from households and toward the broader energy system by limiting how much natural gas can influence power prices.
Specifically, the Iberian exemption outlines a path for natural gas costs in electricity generation, featuring an initial rise of EUR 40 per MWh in the first half of the year, followed by smaller monthly adjustments of EUR 5 per MWh through the remainder of the measure’s term. These steps are designed to stabilize bills while ensuring that supply and demand dynamics in the region remain balanced as seasonal demand shifts occur. (Source: OMIE)