The average electricity price in the wholesale market in May was €187.13 per megawatt hour (MWh), down 33.95% from €283.3 in March. This makes May the cheapest month for electricity so far this year.
In March, Spain and Portugal jointly submitted a proposal to the European Council. This was to limit the price of gas used for electricity generation and thus reduce the price of electricity. It was called the “Iberian exception”, as explained by the Spanish prime minister Pedro Sánchez and his Portuguese colleague Antonio Costa on 25 March. Furthermore, it was proposed to reduce the electricity bill of consumers with a regulated tariff or the semi-regulated tariff (pvpc) by 30% at a time when prices are at an all-time high. However, in March, a new price record was set in Spain.
Last week, however, Ecological Transition Minister Teresa Ribera tempered these expectations and reduced the said reduction to 15-20%. In any case, it is not yet known when the measure will take effect. Because the new mechanism for cushioning electricity prices is still being discussed in Brussels. We have been waiting two months for this.
Cheap month for electricity in May still much more expensive than last year
Although May is the month with the lowest average price this year, electricity is not really cheap. The average price in May (€187.13/MWh) is 178.8% higher than in the same month last year (€67.12). However, there is a slight decrease of 2.3% compared to last month when the average price was €191.51. The Spaniard pays an average of €213/MWh in 2022, compared to €53.24 in the same period in 2021, 300% more.
Also read: Record highs in April for electricity prices
