The average electricity price for regulated rate customers linked to the wholesale market is expected to drop by 0.4% on Wednesday compared with Tuesday. Provisional data from the Iberian Energy Market Operator, OMIE, reported by Europa Press place the price at 236.14 euros per megawatt hour MWh.
The figure combines the wholesale market pool price with the compensation paid to combined cycle plants under the Iberian exception mechanism. This mechanism aims to limit gas prices used for electricity generation and is part of the broader policy framework in the Iberian Peninsula.
Within the auction, the wholesale pool price for electricity stood at 139.30 euros per MWh on Wednesday. The day’s peak price is expected at 172.01 euros per MWh between 08:00 and 09:00, while the lowest price for the day, 99.67 euros per MWh, is anticipated between 19:00 and 20:00.
The pool price is complemented by the compensation to be paid to gas-fired generators. Consumers who benefit from this measure, including those on regulated rate PVPC plans and some indexed-rate customers still in the market, will see an additional 96.84 euros per MWh added to the pool price for the purpose of covering transmission and generation costs.
About a 30% reduction
Without the Iberian exception mechanism that caps gas prices for electricity generation, the Spanish electricity price would average roughly 338.71 euros per MWh. This would be about 102.5 euros per MWh higher than the current compensated rate, meaning regulated rate customers would experience a substantially higher bill. At present, the regulated rate customers enjoy an approximate reduction of 30.2 percent compared with the unassisted price scenario.
The Iberian mechanism has been in force since June 15. It aims to keep gas prices for electricity generation at an average of 48.8 euros per MWh over a twelve month period. This approach is intended to provide price stability through the upcoming winter, a time when energy expenses typically rise.
Specifically, the Iberian exception sets a path for natural gas used in electricity generation, starting at 40 euros per MWh for the initial six months. After that, the price would increase by five euros per MWh each month until the mechanism concludes.