The wholesale electricity price, known as the pool, was set on Saturday at 16:00. It stood at 153.85 euros per megawatt hour (EUR/MWh), marking a decline of more than 22 percent from the value recorded on Good Friday and representing the lowest level since the onset of the conflict in Ukraine.
Data from the Iberian Market Operator (OMIE) shows that the peak price is expected between midnight and 1:00, reaching about 222.43 EUR/MWh, while the nadir is projected at 40.32 EUR/MWh between 15:00 and 16:00.
Despite the fresh drop, electricity costs remain nearly three times higher than those seen a year earlier, when prices hovered around 68.93 EUR/MWh, and remain more than 25 percent below the levels hit on February 24, the day the Ukraine war began.
Moreover, the price on Saturday continues a downward trend, a day when economic activity typically slows and overall energy demand falls. It is down roughly 72 percent from the all-time high of 544.98 EUR/MWh recorded on March 8.
So far this month, the average price for electricity has reached around 213.96 EUR/MWh, about 70 EUR below the March average of 283.3 EUR/MWh, which stands as the month’s highest level and nearly doubles the 2021 figure. At 111.4 EUR/MWh, this year has stood out as one of the more burdensome in historical records.
The wholesale market prices directly influence the regulated rate known as PVPC (Price Volatile to be Paid by Consumers), which covers roughly 11 million households in Spain and serves as a benchmark for the remaining 17 million customers who purchase electricity on the free market. The link between wholesale prices and the PVPC means movements in the pool have tangible consequences for household budgets and business planning alike.
Russia’s invasion of Ukraine continues to inject tension into energy markets, with particular strain on gas supplies. The risk of slower gas imports to Europe, in the face of sanctions imposed by the European Union, contributes to ongoing volatility in energy pricing and supply security considerations across the region.
In response to the evolving economic and social impacts of the Ukraine situation, the government has approved a national plan designed to cushion households and businesses. Measures include a temporary tax discount on electricity bills through June 30 and an extension of the electricity social bond program to reach up to 1.9 million beneficiary households. These steps aim to ease the affordability burden while maintaining the reliability of energy supply as markets adjust to new regulatory and geopolitical realities.
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