Average electricity prices in the wholesale market for this Wednesday are expected to drop by about 4 percent from yesterday. This marks the first time in June that the price has fallen below 190 euros per megawatt hour (MWh).
According to data from the Iberian Energy Market Operator, OMIE, the average price on this Wednesday is projected at 185.45 Euros per MWh, roughly 7.87 Euros lower than yesterday’s level (193.32 Euros).
The highest price for June 8 is forecast at 215.01 Euro per MWh between 09:00 and 10:00, while the daily minimum of 160.23 Euro per MWh is expected between 17:00 and 18:00.
Compared with a year ago, the average price this Wednesday is about 125.25 percent higher than the 82.33 Euro per MWh recorded on 8 June 2021.
Pool prices directly influence the regulated tariff, known as PVPC, which covers about 11 million households in the country and serves as a benchmark for the other 17 million customers who purchase in the free market. It is noted that in 2021 around 1.25 million people moved from PVPC to a free market rate with a fixed price, amid the ongoing energy upside cycle.
In a related development, the National Markets and Competition Commission confirmed the shift in the market in 2021 and highlighted the dynamics of consumer choices under volatility in the energy sector. This context helps explain the ongoing transition between regulated and free market options. [Europa Press attribution]
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GAS CAP: 600 MILLION MORE EXPENSIVE IN SPAIN THAN PORTUGAL
On 14 May, official government measures were published aiming to cap the gas price used for electricity generation at an average level to be maintained over a 12‑month period, covering the upcoming winter when prices are typically higher.
The mechanism, published as a Royal Decree, still awaits formal approval from Brussels and requires ministerial implementation orders to take effect.
Under the plan, the discount applied to the PVPC‑regulated rate for the average electricity consumer is limited to about 15.3 percent during the 12 months after the cap is enacted for natural gas–fueled generation. This summary reflects the legislative framework reported to Europa Press.
For industrial users fully exposed to spot prices, the government forecasts reductions in bills that range from roughly 18 to 20 percent in the first month, with ongoing adjustments expected over the year.
Teresa Ribera, the minister responsible for the ecological transition, noted some uncertainty in the exact reduction figures but projected a possible range between 15 and 20 percent. The cap could imply higher costs for Spanish consumers if the divergence with neighboring Portugal persists, according to industry estimates shared with Europa Press.
The gas cap, adopted by both Spain and Portugal, reflects adjustments in electricity futures, market nuances, and the accounting of resource use across the sector.
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STABILITY SINCE STABILITY
When the crisis in Ukraine began on February 24, wholesale prices stood at 205.6 euro per MWh. Since then, prices rose to a March peak of 544.98 euro per MWh. After mid‑March the market hovered around 250 euro per MWh and recently fell below 230 euro per MWh, signaling some relief from the earlier spike.
March was recorded as one of the most expensive months in history, driven by the broader energy market volatility and supply concerns tied to the war in Ukraine. The monthly average for March reached well over 280 euro per MWh, marking a banner figure in historical comparisons.
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Wholesale prices have a direct effect on the PVPC, the regulated tariff for roughly 11 million consumers, and set a reference point for the 17 million people who contract in the open market. The Ukraine–Russia conflict is seen as a potential driver of higher prices in the near term, particularly for gas supplies, given European sanctions and shifting import flows.
To soften the impact on households, the government extended the VAT cut on electricity bills and other tax relief measures through late spring. The rise in European energy prices is influenced by higher global fuel costs and the price of carbon emission rights, which factor into the cost of running gas‑fired plants that dominate much of the energy mix.
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Government measures to ease consumer bills included four–month extensions of tax relief on electricity charges. The wider rise in European energy costs reflects global market dynamics and the value of gas used in power generation, along with carbon pricing mechanisms. The geopolitical tension between the two former Soviet countries adds a layer of risk for future pricing in the near term.
2021 became the most expensive year in electricity
The year 2021 ended with record highs in the market due to sustained upward pressure on the pool price. The daily market average hovered around 111.93 Euro per MWh for a time, while the monthly figures showed a pronounced divergence from earlier periods. The government extended tax relief on electricity bills through the end of April to cushion consumers from the price surge. The VAT reduction from 21 percent to 10 percent and the reduced electricity tax were kept in place, while the schedule for the production tax relief remained under review for early implementation.