Prices in the wholesale electricity market are moving lower for a sixth consecutive week, according to provisional data from the Iberian Energy Market Operator. The market price for electricity on Monday is set at 103.24 euros per megawatt hour (MWh), marking a 7.28 percent drop from Sunday. This figure represents the lowest Monday level seen since December 27, 2021, when prices hovered around 96.08 euros per MWh.
The highest price expected on April 18 falls between 21:00 and 22:00, reaching 219.69 euros per MWh, while the minimum price, 45 euros per MWh, is anticipated between 14:00 and 15:00.
Compared with the same date last year, the pool price on April 18 is approximately 59.96 percent higher, with a rate of 64.54 euros per MWh recorded on April 18, 2021.
Pool prices directly influence the regulated tariff, known as PVPC, which covers around 11 million households in the country and serves as a reference point for families still on regulated rates. Approximately 17 million households have moved to the free market or various fixed-rate plans.
In a 2021 review, the National Markets and Competition Commission (CNMC) confirmed that about 1.25 million people switched from PVPC to a fixed-price free-market rate amid ongoing energy price pressures.
Measures to reduce the household energy bill
On March 29, the government unveiled a national plan addressing the effects of the Ukraine war. Key elements include extending the tax relief on electricity bills through June 30 and prolonging the electricity social bond to benefit up to 1.9 million households.
Additionally, a timely and extraordinary adjustment to the regulated fee regime for renewable energy, cogeneration, and waste (Recore) was approved, featuring an expenditure package of 1800 million euros aimed at reducing charges on the electricity bill.
Another measure extends until June 30 the efforts to curb excessive profits in the electricity market by broadening the scope of fixed-price contracts and forward agreements. This rule comes into play when market prices exceed 67 euros per MWh.
Meanwhile, governments in Spain and Portugal presented a preliminary proposal to the European Commission that would set a gas reference price of 30 euros per MWh as a lever to lower overall electricity prices.