12% less than applying the measure
The average electricity price for regulated rate customers connected to the wholesale market is set to rise by 2 percent this Sunday compared with Saturday. Provisional data from the Iberian Energy Market Operator indicates the rate will reach up to 240.45 euros per megawatt hour, based on figures collected by Europa Press from OMIE.
The current price reflects a combination of the wholesale market auction average and the compensation paid by demand to combined cycle power plants as part of the Iberian exemption. This mechanism aims to limit gas costs for electricity generation and to ease consumer bills during periods of high energy prices.
In the auction, the wholesale market average price, often referred to as the pool, was 123.98 euros per MWh on Sunday. It is noted that peak power is expected to occur between 10:00 and 23:00, with a maximum around 175 euros per MWh and a minimum near 72.08 euros per MWh recorded between 11:00 and 12:00 for the day.
With the pool price at 116.47 euros per MWh, compensation is added to the charges borne by gas suppliers. This compensation impacts payments by consumers who benefit from the Iberian mechanism, including those on regulated PVPC rates or those on indexed rates while in the free market. The result is a cost structure that supports households and businesses that rely on regulated or indexed tariffs during this market period.
Under normal circumstances, electricity prices in Spain would be about 12 percent higher when the Iberian exemption is not in effect. Without the mechanism, the average price would be around 281.91 euros per MWh, meaning an increase of roughly 34 euros per MWh. The exemption therefore provides tangible savings for regulated rate customers, who on average pay less due to the measure.
The Iberian mechanism became effective on 15 June and is designed to cap the gas price used for electricity generation at an average of 48.8 euros per MWh for a twelve month term, a move intended to shield consumers from the high energy costs expected in the winter months when prices tend to spike. The exemption specifically targets natural gas used for electricity generation at a price of about 40 euros per MWh, with an increase in the monthly price by roughly five euros per MWh for the first six months, and a continuation of that level through the duration of the measure. These parameters help stabilize household energy bills and support the reliability of the electricity system during periods of elevated gas prices. This approach is widely covered by industry analyses and consumer reports (sources attributed to OMIE and related market data).