Average electricity price for regulated-rate customers connected to the wholesale market is projected to fall by 11.5 percent on Thursday, reaching up to 208.96 euros per megawatt-hour (MWh) compared to the prior day, based on provisional data from the Iberian Energy Market Operator (OMIE) reported by Europa Press. This figure reflects the sum of the auction average on the wholesale market and the compensation paid to combined cycle power plants under the Iberian mechanism designed to cap gas costs for electricity generation.
During the auction, the wholesale market price known as the pool stood at 134.67 euros per MWh on Thursday. The highest hourly price is expected to occur between 22:00 and 23:00 at 189.33 euros per MWh, while the daily minimum is forecast between 17:00 and 18:00 at 98.6 euros per MWh. A compensatory amount of 74.29 euros per MWh is added to this pool price to determine the final consumer price, applicable to those on the PVPC regulated rate or to customers on an indexed rate who remain in the free market. These values are based on current market data and official calculations as reported by OMIE and corroborated by EU energy market watchers.
Almost 40% less
Without the Iberian exception mechanism that curbs gas costs for electricity generation, the price of electricity in Spain would average around 348.21 euros per MWh, approximately 139.2 euros higher than the adjusted rate under current measures. Consequently, regulated-rate customers and those with indexed tariffs, even within the free market, would be paying notably more each month. In practice, the mechanism delivers a meaningful adjustment that translates into substantial savings for households and businesses over the period in which the policy applies. [Source: OMIE data and regulatory briefings]
Interpreting the Iberian mechanism, the law that began on 15 June introduces a cap on the gas price used for electricity generation, fixing an average price of 48.8 euros per MWh over a twelve-month window. This ceiling is designed to safeguard households during the winter months when energy costs typically rise, while maintaining a stable framework for electricity pricing across the region.
Specifically, the Iberian exception creates a pathway for natural gas to contribute to electricity generation at a price around 40 euros per MWh, with a modest monthly increase of five euros per MWh planned for the initial six months and maintained thereafter through the end of the measure. The approach aims to balance energy security with affordability for consumers in both Spain and the broader Iberian market.
At a press conference held this Wednesday, Teresa Ribera, the government’s third vice-president and minister for the Ecological Transition and Demographic Challenge, indicated that the Iberian exception would yield meaningful savings for Spanish households. The provisional estimate cited by Ribera points to about 1,383 million euros in total savings for consumers during the two-month validity period of the measure. She also noted that this figure equates to roughly 22 million euros of daily savings for Spanish society since the policy took effect. [Official briefings and government remarks]