Electricity price today, November 3: the most expensive hour will be from 18:00 to 19:00 and the cheapest from 14:00 to 15:00

The daily setting of electricity prices in Spain is governed by European regulations, national legislation, and market operation rules. The wholesale market price, where energy for the next day is traded, should not be confused with the final bill price or the regulated tariff PVPC.

1. Wholesale market regulations

• Royal Decree 2019/1997, of December 26, which organizes and regulates the electricity production market. It is a fundamental reference, although it has been amended numerous times. It regulates market participation, purchase and sale offers, their settlement, and coordination among operators. It defines the daily market as the one where transactions with physical delivery for the next day are established through a process of offer matching — the crossing of buyer and seller proposals. Text in the BOE.
• Law 24/2013, of December 26, on the Electricity Sector. Provides the general framework for production, marketing, and supply. It distinguishes activities carried out in competition from those whose remuneration is regulated. It is the legal basis for the market and the PVPC methodology but does not establish a daily figure that each producer must charge. Electricity Sector Law.
• Circular 3/2019, of November 20, from the CNMC. Establishes methodologies for the operation of the wholesale market and system operation. Articles 9 and 10 address the daily market and its European coupling: offers are matched considering also the available capacity to exchange electricity between countries. It is complemented by rules, conditions, and procedures approved to develop this framework. CNMC Circular.

2. The European dimension and price formation

The Regulation (EU) 2015/1222, known as CACM, which regulates capacity allocation and congestion management, is especially relevant. As explained in Circular 3/2019, the European daily market combines offer matching with capacity allocation between market zones.

The design is marginalist: the price is obtained from matching, not from a daily administrative decision. Therefore, the cost of gas can influence the electricity price when generation using it is necessary to meet demand. Regulation (EU) 1227/2011, on wholesale energy market integrity and transparency, complements this framework by prohibiting abusive practices.

Economic management corresponds to the market operator, OMIE; technical management and supply security to the system operator. The CNMC develops methodologies and supervises behaviors. The Circular requires both operators to detect possible suspicious conduct and report it to the CNMC.

3. If you refer to the price paid by the consumer

The specific regulation is Royal Decree 216/2014, of March 28, which regulates the calculation of the PVPC. It develops article 17 of Law 24/2013, which adds tolls, charges, and marketing costs to the production cost; then the corresponding taxes are applied. Therefore, the wholesale price does not equal the bill. PVPC Regulation.

Royal Decree 446/2023, of June 13, modified this methodology to incorporate forward price signals and reduce volatility. Thus, the PVPC should not be described solely as a direct transfer of the daily market. Publication of the reform.

The CNMC performs three major functions in the electricity sector: regulating certain economic and operational aspects, supervising markets, and pursuing non-compliance. Its goal is to promote competition, transparency, and non-discriminatory access to networks, protecting consumers and companies. It does not direct energy policy nor directly operate the electrical system.

Its powers are mainly based on Law 3/2013, establishing the CNMC, Law 24/2013 on the Electricity Sector, and European regulations. Royal Decree-law 1/2019 strengthened its regulatory powers, which it develops through circulars and resolutions, as explained on its electricity market regulation page.

1. Economic regulation of networks

The CNMC establishes methodologies related to the remuneration of regulated activities, especially transport and distribution, and tolls for using their networks. It also determines the remuneration methodology for the system operator and controls the costs recognized according to it. A specific application is the operator's regulatory account, intended for certain obligations and additional projects.

2. Access and connection to networks

It approves methodologies and conditions for accessing and connecting to transport and distribution networks: content of requests and permits, economic criteria, capacity evaluation, reasons for denial, and publicity obligations. It supervises that their application is objective, transparent, and non-discriminatory. These powers are exercised within the competence distribution with the Government provided in article 33 of the Electricity Sector Law; an example is the demand access specifications.

3. Market and system operation

Within its powers, it approves rules of electricity markets and operation procedures. It regulates balancing service methodologies — which balance production and consumption — and other services necessary for the safe operation of the system. For example, it approved the development of the voltage control service. It also intervenes in capacity allocation methodologies and congestion management in interconnections, coordinating with other regulators and ACER, the European energy cooperation agency.

4. Supervision and consumer protection

• Markets: monitors prices, transparency, agent behavior, and compliance by producers, distributors, marketers, and operators.
• Networks: controls third-party access and functional and accounting separation between regulated and liberalized activities.
• Consumers: supervises contracting, offer information, billing, and marketer changes; publishes comparators, reports, and recommendations.

These protection functions are shared with other administrations: this does not mean the CNMC resolves all individual supply claims.

5. Investigation, sanctions, and competition defense

It can request information, inspect and investigate non-compliance, and sanction those attributed by law. Sectoral sanctioning power and competition defense against restrictive agreements or abuse of dominant position must be distinguished.

Additionally, it applies the REMIT framework on market integrity, aimed at preventing manipulation and insider trading in wholesale markets. For example, it sanctioned Neuro Energía for manipulating the intraday market.

In short, the CNMC regulates and supervises but does not replace the Government in energy policy, autonomous communities in their competencies, Red Eléctrica in technical operation, nor OMIE in daily and intraday market management.

To contract the Voluntary Price for Small Consumers (PVPC), the regulated electricity tariff, the holder must be a natural person or a microenterprise, have a low voltage supply, and have contracted power equal to or less than 10 kW in each time period. Additionally, the contract must be formalized with a reference marketer. Low income is not required: that requirement corresponds, in certain cases, to the social bonus, which is a different aid.

Main PVPC requirements

• Type of holder. Natural persons and microenterprises can access it. Therefore, individuals and certain small businesses can contract it; not all companies are entitled, even if their consumption is low.
• Microenterprise condition. These are companies with fewer than ten employees and whose annual turnover or annual balance sheet does not exceed two million euros. The company must prove it meets the conditions required to access the PVPC.
• Low voltage supply. Voltage cannot exceed 1 kV. This requirement refers to the technical characteristics of the supply, not to monthly electricity consumption.
• Maximum power of 10 kW. The limit includes contracts with exactly 10 kW and must be respected in each time period. Power, expressed in kilowatts, should not be confused with energy consumed, measured in kilowatt-hours.
• Reference marketer. The contract must be expressly signed in PVPC mode with one of these authorized companies. A free market offer does not become regulated by belonging to the same energy group.

The Ministry for the Ecological Transition details these conditions in its information on supply contracting and in its frequently asked questions.

How they apply in common situations

A home with 4.6 kW contracted can access the PVPC if its holder is a natural person and contracts with a reference marketer. A small shop with 8 kW can also do so if it meets the microenterprise conditions. However, a home with 12 kW does not meet the power requirement: to access it, the contracted power would have to be within the allowed limit.

Companies that are not microenterprises are excluded, even if they have less than 10 kW. Regarding community supplies in buildings — elevators, lighting, or pumps — access should not be assumed solely by their power: the holder requirement must also be met. Homeowners' associations, as such, generally do not fit the indicated categories.

PVPC and social bonus are not the same

Contracting PVPC does not automatically grant the social bonus. To request that discount, the contract must be in the name of a natural person, correspond to their habitual residence, and be under PVPC. Additionally, economic, family, or personal requirements must be met to recognize vulnerable consumer status.

Access routes include income thresholds, large family status, certain pensioners with minimum benefits, and beneficiaries of the minimum vital income. Each case has its conditions. Demócrata explains the requirements and necessary documentation to apply.

What to check before applying

Check on your bill who the holder is, what power you have contracted in each period, and which company issues the receipt. Then, expressly request the PVPC from a reference marketer. You can consult the CNMC's guidance on electricity supply. These requirements correspond to electricity: they should not be automatically transferred to other regulated tariffs, such as gas.