Average electricity price for regulated-rate customers connected to the wholesale market is projected to rise by 0.82% from Wednesday to Tuesday, reaching €264.10 per megawatt hour (MWh). This figure comes from provisional data reported by the Iberian Energy Market Operator (OMIE) and summarized by Europa Press.
The price results from combining the wholesale market’s average auction price with the compensation charged to gas plants under the Iberian mechanism, which limits gas costs for electricity generation. This mechanism, known as the Iberian exemption, is designed to ease gas-price pressure for power production.
In the auction, the wholesale pool price averaged €147.85 per MWh for the day. The intraday high was €176 per MWh between 22:00 and 23:00, while the lowest level was €126 per MWh between 17:00 and 18:00.
The pool price is supplemented by a €116.25 per MWh compensation paid to gas companies. These charges are passed on to consumers who benefit from this policy, including those on the regulated tariff (PVPC) and, in some cases, customers on indexed rates within the free market.
14% lower than without the policy
Without the Iberian mechanism, the price of electricity in Spain would be around €307.18 per MWh, about €43 higher on average. Consequently, regulated-rate customers end up paying roughly 14% less, thanks to the policy’s impact on market pricing and transmission of compensation.
The Iberian mechanism, which began operating on 15 June, sets a cap on natural gas costs for electricity generation. It targets an average price of €48.8 per MWh over a twelve-month period, creating a buffer for the upcoming winter when energy prices tend to climb. This approach provides price visibility and security for households and businesses affected by volatile gas prices.
Specifically, the Iberian exemption assigns a pathway for natural gas used in electricity generation, with €40 per MWh added to the cost in the first six months and a gradual €5 per MWh monthly increase thereafter until the mechanism concludes.