The wholesale electricity price is expected to rise by 2.53 percent on Wednesday compared with Tuesday, climbing to 184.57 euros per megawatt-hour. It remains below 200 euros per MWh for the fifth consecutive day, based on data from the Iberian Market Operator and reported by Europa Press.
For Wednesday, the peak price will be 227.98 euros per MWh between 07:00 and 08:00, while the daily minimum is projected at 155 euros per MWh during the 16:00 to 17:00 window.
Compared with the previous year, the cost of electricity on this Wednesday is 140.83 percent higher than the 61.09 euros per MWh recorded on May 25, 2021.
Pool prices directly influence the regulated tariff known as PVPC, which acts as a benchmark for around 17 million residents, including almost 11 million households. A portion of consumers is gradually moving from PVPC to fixed-price options in the free market.
The National Markets and Competitiveness Commission is projecting that about 1.25 million people will switch from PVPC to fixed-price rates on the free market.
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On May 14, the Official State Gazette published Royal Decree establishing a mechanism to cap gas price contributions to electricity generation. The cap is set at an average of 48.8 euros per megawatt-hour over a twelve month period, a measure designed to shield households and businesses from spikes in energy costs during the coming winter when prices tend to be higher.
Although the mechanism appears in the Royal Decree, the formal decision is still pending. Brussels and its implementation require a ministerial order to be issued.
In its calculations, the government limits the discount available to the typical electricity consumer covered by the PVPC to 15.3 percent. The PVPC rate will operate during the twelve months after applying the approved cap on gas-generated electricity, as outlined in the impact study accessed by Europa Press and accompanying the decree.
For industrial users who face the spot price directly, the government projects a reduction in bills of about 18 to 20 percent. The decrease is expected to range from 15 to 17 percent in the first month of the mechanism and from 13 to 15 percent in the final month.
Teresa Ribera, the minister for the Ecological Transition and Demographic Challenge, cautioned on Monday that while an exact drop in electricity price will depend on the gas cap taking effect, forecasts from the Manager suggest fluctuations between 15 and 20 percent.
The measure aims to stabilize prices and curb inflation, acting as a shield against gas price volatility driven by the war in Ukraine and supporting the reform of the PVPC in the process. The policy rollout marks a significant step in aligning the regulated rate with market realities while mitigating short term price spikes for consumers.