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Electricity on Spain's wholesale market is set to top €200/MWh today, Tuesday October 6, for the first time in almost four years.

 

According to the Iberian Energy Market Operator (OMIE), the average daily price of the so-called 'pool' will come in at €201.99/MWh, which is 2.6% more than the €196.88/MWh recorded on Monday. You'd have to go back to December 5, 2022 to find a higher daily average, when the market reached €209.3/MWh.

 

Prices will swing quite a bit throughout the day, with the cheapest hour falling between 4pm and 5pm at €147.09/MWh and the dearest coming late in the evening, when the price will hit €281.31/MWh between 9pm and 10pm.

 

Industry sources explain that rising demand and pricier natural gas are behind the jump, as gas plays a big part in setting prices during the hours when solar output drops. On the Mibgas market, Spain's main benchmark for gas, the price reached €75.25/MWh on Monday.

 

Those ups and downs come down to how the market works, with an algorithm matching bids from power producers to purchase orders. The bids are ranked from cheapest to dearest and the final price is set by the most expensive bid needed to meet demand. When gas-fired combined cycle plants have to step in, prices tend to climb, while a plentiful supply of cheaper renewable energy helps to pull them down.

 

The wholesale price isn't the whole story when it comes to bills, as tolls, charges and various system adjustments are added on top. It also isn't passed on in full to customers on the PVPC (Voluntary Price for Small Consumers), the regulated tariff. Since 2024 the way the PVPC is calculated has gradually leaned more on medium and long-term markets to protect consumers from sharp daily swings, while keeping a slice tied to the short-term market to encourage more efficient use. This year futures markets make up 55% of the reference used to work it out.

 

Around eight million households remain on the regulated tariff and will feel the rise most, although the impact is smaller than it would have been under the old system. For anyone on the free market, the price depends on whatever's been agreed with their supplier.

 

Tuesday's increase follows a costly September, when the average wholesale price was €143.26/MWh, the highest for any month since 2022. That's 21.1% more than August and 134.7% higher than September 2025.

 

 

 

Image: Magnific