According to the latest results from the auction in the wholesale electricity market, it is announced that the price of electricity will fall by 11.3 percent tomorrow, landing at 211.37 Euro per megawatt hour (MWh). The change reflects how the system balances generation costs and consumer charges across the market, including the effect of a setting payment tied to gas cap beneficiaries that helps offset costs for facilities that rely on gas to generate power.
Ribera requires power companies to report the savings generated by the gas cap on electricity bills, ensuring transparency about how much of the price reduction is being passed through to consumers and how much covers adjustments in generation costs. This report is part of ongoing efforts to show how policy tools influence retail prices in real time and how much relief is available to households and businesses through the mechanism.
Ribera forces power companies to report savings from gas cap on electricity bill
Without relying on the Iberian mechanism, the wholesale price today would be 4.35 euros per MWh higher (215.72 euros per MWh), according to data from the Iberian Electricity Market Operator (OMIE) and the Iberian Gas Market (Mibgas). This contrast highlights the impact of the gas cap and related interventions in stabilizing prices for consumers and the broader economy.
In Portugal, where the gas cap for electricity generation also applies due to what is known as the Iberian exception, the price aligns with Spain, where the market operates as a shared system. This alignment reflects close market integration and mutual support mechanisms that help dampen volatility across neighboring markets and ensure comparable consumer prices across the region.
Across Europe today, electricity payments vary by country: in Italy the price sits around 289.39 Euro/MWh, in France about 287.46 Euro/MWh, in Germany roughly 282.54 Euro/MWh, and the United Kingdom at approximately 196.23 Euro/MWh. These figures illustrate how national differences in generation mix, capacity, and regulatory measures shape wholesale costs even within a connected European market.
If the auction results are considered without the gas cap’s adjustment for beneficiaries, the base wholesale price would be about 133.96 Euro per MWh. The gas cap and its adjustments play a crucial role in shaping the final consumer price by offsetting some of the higher generation costs when gas prices spike, while also accounting for the specific volumes required and the system’s overall price level.
Taking into account time-of-day variations, the market often records the highest price between 21:00 and 22:00, typically around 188.6 Euro/MWh, while the lowest price tends to occur between midday and early afternoon, roughly 12:00 to 13:00, around 104.57 Euro/MWh. These daily fluctuations reflect supply and demand dynamics, including wind and solar output, demand patterns, and how quickly the system can bring additional generation online when needed.
Overall, the temporary average adjustment for consumers stands at about 77.41 Euro/MWh, yet the final price to the end user remains 211.37 Euro/MWh, which is around 14.69 percent higher than the same period last year. This delta underscores the influence of global gas prices, generation mix, and policy tools that buffer households from abrupt price shocks while still reflecting market fundamentals.
It is important to note that the final consumer price includes multiple elements beyond the base energy charge. Adjustments related to gas plant costs, capacity payments, and system price levels vary with the volumes required and the prevailing gas price. These components collectively determine how much of the wholesale rate translates into the price seen by households and businesses, illustrating the blend of market forces and policy interventions that shape the monthly electricity bill.