Measures and Trends in Wholesale Electricity Pricing
The wholesale electricity price for this Tuesday is set to rise sharply, climbing by roughly forty five percent above Monday and again exceeding the market reference level. The entered value lands around 230 euros per megawatt hour, following a brief pause in recent days that brought pricing relief. Market operators in the Iberian system report an average pool price for Tuesday near 237.3 euro per MWh, a jump of about 74 euros from today’s 163.13 euro per MWh, with data gathered by the Iberian Energy Market Operator and compiled by Europa Press.
Trading in the pool has shown volatility over the weekend. After a Friday-like lull that carried into Sunday, prices started Tuesday from a low around 154.7 euro per MWh, the weakest level seen since late February before the war in Ukraine. Wind and solar contributions helped keep prices under pressure for certain hours, with occasional dips reaching as low as about 1 euro per MWh during peak renewable output periods.
The highest price anticipated on Tuesday is expected between 22:00 and 23:00, reaching about 282.26 euro per MWh. Conversely, the lowest point is projected between 04:00 and 05:00, around 183 euro per MWh. The year-over-year comparison shows Tuesday’s pool price is significantly higher, marking an increase of approximately 276.4 percent compared with the same period last year and a notable rise from mid-April 2021 levels.
The pool price has a direct influence on the regulated tariff known as PVPC, which covers roughly 11 million households in the country. It also serves as a reference for about 17 million households that are reducing their consumption through the free market. The National Markets and Competition Commission notes that in 2021 around 1.25 million people moved from PVPC to a fixed-price free-market rate, reflecting a broader shift in energy pricing dynamics amid price pressures.
Measures to Reduce Household Energy Costs
On March 29, the government approved a national plan to mitigate the impact of the crisis caused by the war in Ukraine. The package includes extending the tax relief on electricity bills through the end of June and expanding the electricity social bond so that up to 1.9 million households can benefit. In addition, an extraordinary update was accepted for the regulated regime governing renewable energy, cogeneration, and waste, a program totaling around 1.8 billion euros that reduces line-item charges on the bill.
Another key measure is the extension of gas relief through June 30 to limit extraordinary profits in the electricity market. This extension applies to energy products with futures and fixed contracts, provided the price in question exceeds a threshold of 67 euros per MWh. These steps aim to dampen volatility and protect consumers as market conditions evolve.
Governments in Spain and Portugal have also submitted a preliminary proposal to the European Commission that would set a reference price for gas at 30 euros per MWh, a move intended to weaken electricity prices by curbing gas-driven cost pressures. The broader energy policy context in North American markets shows parallel concerns about price spikes driven by generation mix, fuel costs, and wholesale market design, with regulators in Canada and the United States closely watching how wholesale price signals affect household bills and market competition.