Around the wholesale market, the average electricity price for customers on regulated rates is set to rise by 18.8% on Monday, August 1. Provisional figures from the Iberian Energy Market Operator (OMIE), compiled by Europa Press, indicate the rise could push the average price for this Sunday to as high as 235.32 euros per megawatt-hour (MWh).
The surge reflects the combination of the wholesale market’s standard auction price with the compensation paid by demand to gas-fired plants under the Iberian exemption, a policy designed to cap gas costs for electricity generation. This structure means that the final consumer cost is shaped by both the market-clearing price in the pool and the additional compensation built into the system to support gas plants under the exemption framework.
On the day in question, the pool price—the average price in the wholesale market—stands at 147.43 euros per MWh for Monday. The hourly peak is projected at 165.09 euros per MWh between 21:00 and 22:00, while the lowest point of the day is forecast at 123.72 euros per MWh from 10:00 to 11:00.
To reach the consumer price, the pool price is augmented by an additional 87.89 euros per MWh as compensation paid to gas producers. This means that regulated-rate customers, as well as those with indexed rates while still in the regulated market, may see a total price that includes both the pool value and the compensation component, compounded by any applicable adjustments in the consumer tariff framework.
Without the Iberian exemption mechanism to limit gas prices for electricity generation, the average price of electricity in Spain could hover around 286.19 euros per MWh. In that scenario, the expected impact would be a broader increase across billing, with consumers facing higher overall electricity costs than those observed under the exemption scheme. The net effect is a reduction of roughly 50 euros per MWh on average for those who benefit from the measure, compared to what regulated-rate customers would face otherwise.
The Iberian mechanism, which commenced on June 15, is designed to restrain gas prices for electricity generation at an average of 48.8 euros per MWh over the course of twelve months. This cap is intended to cushion households during the coming winter, a period typically characterized by higher energy expenditures. In practical terms, the mechanism sets a roadmap for natural gas use in electricity generation, with an initial increase of 40 euros per MWh during the first six months, followed by a gradual reduction of five euros per MWh each month for the remainder of the measure’s duration.