This Friday brings a 9.04% rise in the average electricity price for customers on regulated rates tied to the wholesale market, reaching up to €301.31 per megawatt hour (MWh) from the previous day, according to provisional data from the Iberian Energy Market Operator (OMIE) and reported by Europa Press.
The latest figure reflects the combination of the wholesale market auction average and the compensation that demand pays to gas-fired plants under the Iberian exemption, a policy designed to cap gas costs in electricity generation.
In the auction, the wholesale market price, known as the pool, stood at an average of €158.25/MWh for Friday. The highest hourly price is projected at €182.78/MWh between 21:00 and 22:00, while the lowest price for the day is expected to be €124.69/MWh between 16:00 and 17:00.
On top of the pool price, a compensation of €143.06/MWh is added, payable by gas suppliers to customers benefiting from this measure. This applies to those on the regulated PVPC tariff as well as some users with indexed rates on the free market.
11% Below the Market Average Without the Mechanism
Without the Iberian exemption in place to limit gas costs for electricity production, Spain would see an average electricity price around €338.72/MWh. That would be roughly €37/MWh higher than the current compensation paid to regulated tariff customers, illustrating the impact of the policy.
The Iberian mechanism began operating on 15 June and sets a cap on natural gas prices used for electricity generation, averaging about €48.8/MWh over a 12-month period. The policy is designed to smooth energy costs into the next winter when prices typically rise.
Specifically, the Iberian exemption establishes a pricing path for gas used in electricity generation at €40/MWh for the first six months, with a subsequent monthly increase of €5/MWh through the remainder of the measure.