72% less
Electricity prices for customers with regulated rates tied to the wholesale market are expected to fall this Monday. The price is set at 11.71 euros per megawatt hour (MWh), reflecting a sharp decline from Sunday’s 21.49 euro per MWh. This drop marks a substantial relief for households relying on regulated tariffs and linked pricing schemes as the market adjusts to recent dynamics in supply and demand.
In the wholesale pool, the average price at auction will be 13.22 euro per MWh for Monday. Within the pool, there are hours with notably low and high prices: the cheapest period is 3 euros, occurring from 01:00 to 02:00 and again from 03:00 to 05:00, while the peak price reaches 34.20 euros between 20:00 and 21:00. These hourly fluctuations illustrate how energy pricing can swing with consumption patterns and generator uptime across the day.
To this pool price, an adjustment is added for compensation to gas companies, totaling -1.51 euro per MWh for Monday. This adjustment is charged to consumers who benefit from the measure, including those on PVPC regulated rates and those on indexed rates even if they purchase energy on the free market. The net effect of these calculations is to influence the overall cost faced by different types of electricity customers on a daily basis.
Price levels and sector context
Without an Iberian exception mechanism that controls gas prices used for electricity generation, Spain would see a higher average electricity price. In this context, the day’s overall price is projected to average near 42.89 euro per MWh, which is markedly higher than the regulated tariff group. The difference between the general market price and those on regulated tariffs can be substantial, underscoring how policy instruments shape consumer bills in energy markets.
The Iberian mechanism, which began to operate on June 15, is designed to reduce volatility during the winter months when demand typically rises and supply costs can climb. By setting an average cap on gas prices used for electricity generation, the policy aims to stabilize household and business energy costs during a period of heightened consumption and tighter supply conditions. The mechanism seeks to curb peak price spikes and deliver more predictable bills for a longer horizon.
Concretely, the Iberian exception functions as a price guardrail for natural gas used in power generation. The policy starts with an initial price ceiling of 40 euros per MWh for the first six months and gradually reduces by a fixed amount monthly, moving toward a more sustainable level as the year progresses. This staged approach helps ensure affordability while maintaining the incentives necessary for securing reliable energy production across the system.
Officials in the region have discussed extending the Iberian exemption to cover a broader price range, proposing a cap that could land between 45 and 50 euros per MWh. The proposal includes maintaining a cap with similar structural safeguards until at least the end of 2024, recognizing the ongoing need to shield consumers from abrupt price shifts while the market stabilizes and longer-term investments continue. The discussion reflects a balance between market efficiency, energy security, and consumer protection as energy markets evolve in Europe.
Overall, these policy tools illustrate how coordinated regulatory measures can help translate wholesale energy market movements into more predictable costs for households and businesses. They also highlight the ongoing interplay between gas prices, electricity generation costs, and consumer bills in a dynamic energy landscape of Spain and the broader Iberian peninsula.