The typical electricity price for customers on regulated tariffs linked to the wholesale market is set to fall this Sunday. The rate stands at 21.49 euros per megawatt hour (MWh), marking a substantial drop from Saturday by 59.6 percent, when the price was 53.19 euros per MWh. This change brings relief to households and small businesses that rely on stable, policy-backed pricing tied to wholesale movements.
In the wholesale market, often referred to as the pool, the Sunday average price for electricity is projected at 22.05 euros per MWh. The day will feature a low of 3.18 euros between 04:00 and 05:00 and a high of 50.56 euros between 20:00 and 21:00, reflecting typical daily volatility that energy markets experience as demand ebbs and flows. Consumers in regulated tariffs and those with index-linked rates will feel the impact of these shifts as part of the broader price-setting framework.
Compensation for gas suppliers is added to this pool price, a cost borne by consumers who benefit from the regulated tariff (PVPC) or who retain a tariff within the free market. For this Sunday, the adjustment stands at minus 0.56 euro per MWh, a modest reduction that interacts with the pool dynamics to shape end-user charges in the near term.
58% less
Without a mechanism to cap gas costs for electricity generation, the average electricity price in Spain would be about 51.3 euros per MWh. That scenario would place regulated-rate customers at roughly a 29.81 euro per MWh premium compared with the current outcome, which translates to about 58.11 percent lower charges for those supported by the regulated rate. The pricing framework thus delivers meaningful relief during a period of heightened energy costs, even as market pressures persist across the energy sector.
The Iberian mechanism, launched on 15 June, serves to constrain the average gas price used for electricity generation. It sets the benchmark at 48.8 euros per MWh for a twelve-month horizon, extending protection through the coming winter when energy needs peak. This cap is designed to stabilize budgeting for households and businesses alike as seasonal demand spikes test affordability and supply resilience.
Specifically, the so-called Iberian exemption sets a path where natural gas-driven electricity starts at a price point of 40 euros per MWh in the initial six months, followed by a transition to 5 euros per MWh each month until the measure ends. This staged approach aims to smooth price movements while preserving the incentive structure needed to maintain supply reliability and energy security for consumers across the region.
The Spanish government has requested Brussels to extend the Iberian exemption well into a higher ceiling, proposing a range between 45 and 50 euros per MWh with a similar cap mechanism, at least until the end of 2024. The request reflects ongoing efforts to align European policy with regional energy needs and market realities, ensuring continued protection for consumers amid evolving energy markets.