Electricity prices for customers with regulated rates tied to wholesale market movements are projected to fall by about 31.9% from Thursday through the following Wednesday, landing at roughly 177.44 euros per megawatt hour (MWh). This change reflects the latest dynamics in the wholesale trading session and highlights how regulated tariff customers can benefit from swings in wholesale power markets.
During the auction for the up-to-date price reference, the average cost of electricity in the so-called pool market was set on Thursday at 122.39 euro per MWh. The hour-by-hour schedule shows a peak around 166.44 euro per MWh between 20:00 and 21:00, while the daily minimum dips to about 102.50 euro per MWh from 05:00 to 06:00. These figures come from provisional data reported by the Iberian Energy Market Operator and compiled by Europa Press, illustrating how daily pricing can vary across the 24-hour cycle.
On top of the pool price, compensation is added to account for gas-related costs—this affects consumers on the regulated tariff (PVPC) and those with indexed rates even if they are in the free market. The current compensation is 55.05 euro per MWh for the reference Thursday, reflecting the policy design that spreads gas-related adjustments across different customer groups to stabilize consumer bills amid wholesale volatility.
Without the Iberian mechanism in place to cap generation gas costs, Spain would see overall electricity prices rise toward roughly 276.34 euro per MWh on average. That scenario would create a substantial premium relative to compensation levels available to regulated-tariff customers, who would face notably lower bills under the existing framework. In practical terms, the current structure aims to shield households from sharp swings and reduce one-year-to-date bill exposure for many end users.
The Iberian mechanism, activated on 15 June, sets a cap on gas prices used for electricity generation at an average of 48.8 euros per MWh for a full year, addressing anticipated price pressures for the coming winter and beyond. This cap serves as a price anchor to temper wholesale market spikes that could otherwise push consumer costs higher during peak demand periods.
Concretely, the Iberian exception stipulates that natural gas used for electricity generation is priced at 40 euro per MWh for the initial six months, until 15 December. After that date, the price increases by five euro per MWh each month, gradually adjusting as market conditions evolve and the policy horizon extends toward its renewal or modification based on energy market signals and regulatory review, with the overarching goal of maintaining affordability for households and maintaining system reliability.