Average electricity price for regulated-rate customers in the wholesale market for this Sunday shows a notable drop to 10.63 euros per megawatt hour (MWh). This shift marks a sharp decline in the wholesale price for the day and signals a continuation of the easing trend observed earlier in December.
As a result, Sunday’s price is expected to fall by roughly 69% compared with Saturday. It would reach levels not seen since May 9, 2021, before the onset of the energy crisis, when the price stood at 10.53 euros per MWh. The recent trend reinforces the downward trajectory that began at the start of the month, supported by favorable hydro and wind conditions and a reduced dependence on gas-fired generation.
On December 25, 2021, the average price in the wholesale market for electricity rose to 226.42 euro per MWh, illustrating how much the market has shifted in the past year as prices moved through a period of turbulence. The current day’s performance adds to a broader cooling pattern that has taken hold since early December.
The downward movement is underpinned by hydropower generation reaching higher output while wind generation benefited from better wind conditions. Rivers and reservoirs provided more hydraulic power, helping to ease the pressure on gas-fired generation and contributing to a lower overall bill for consumers on the regulated tariff (PVPC) and for those on tariffs that are indexed to the market.
cheap up to 18 hours
During the auction, the average price of electricity in the Iberian wholesale market, often referred to as the pool, was set at 15.24 euros per MWh for Sunday. The charge remains below 5 euros per MWh for most of the day until 18:00, highlighting a period of affordability within the day’s trading window.
The provisional data from the Iberian Energy Market Operator indicate the minimum price at 1.45 euro per MWh. The highest price is forecast to occur between 5:00 am and 7:00 am, with a peak of 50.26 euro per MWh anticipated between 20:00 and 21:00, as reported by Europa Press and OMIE sources.
In addition, compensation for gas companies is added to this pool price. This compensation is charged to consumers benefiting from the measure, including those on regulated tariffs (PVPC) or those who hold a tariff despite being on the free market. The data show negative pricing levels for this market, with a provisional figure of -4.61 euro per MWh.
84% less
Without the Iberian mechanism that caps gas prices for electricity generation, the average electricity price in Spain would be around 67.4 euro per MWh. That would translate to approximately 56.67 euro more per MWh for consumers who would otherwise face higher costs, resulting in an estimated 84.23% reduction in the amount paid by those under the regulated rate.
The Iberian Mechanism, which began on June 15, sets a cap on gas-generated electricity and applies through the upcoming winter, a period when energy prices tend to rise. It has produced an average price of about 48.8 euros per MWh over a twelve-month span, providing relief to households and businesses alike.
Specifically, the Iberian exception outlines a framework for natural gas to generate electricity, starting at 40 euro per MWh and increasing by five euro per MWh each of the first six months, with adjustments continuing through the end of the measure. This staged approach helps smooth the impact of gas price shifts on electricity buyers while the mechanism operates.