Price of electricity today, September 14: the most expensive hour will be from 20:00 to 21:00 and the cheapest from 14:00 to 15:00

The hourly electricity price-setting mechanism in Spain is not regulated by a single rule, but by a legal “block” ranging from the basic sector law to technical market rules. Based on official information, the key pieces are as follows.

1. Basic framework of the sector and regulated prices

• Law 24/2013, of December 26, on the Electricity Sector (text in BOE). It is the framework law that:
  • Defines electricity supply as a service of general economic interest and separates network activities (transport, distribution) from market activities (generation, commercialization).
  • Establishes the State's powers to set tolls, charges, and methodologies for calculating regulated prices.
  • Regulates the voluntary prices for small consumers (PVPC) and last-resort tariffs (art. 17), on which the hourly bill of consumers under the regulated market is built.

2. Setting the hourly wholesale price (day-ahead and intraday market)

• Royal Decree 2019/1997, of December 26, organizing and regulating the electricity production market (cited in the Resolution of May 9, 2018; reference in BOE). It organizes the production market, recognizes OMIE as market operator, and enables the approval of operating rules for the day-ahead and intraday markets.
• Resolutions on the Operating Rules of the day-ahead and intraday markets, which technically develop how offers are matched and the hourly marginal price is obtained:
  • Resolution of May 9, 2018, from the Secretary of State for Energy, approving the Operating Rules of the day-ahead and intraday electricity production markets (BOE-A-2018-6295).
  • Resolution of May 6, 2021, from the CNMC, adapting the rules to European matching limits (BOE-A-2021-8362) and its error correction (BOE-A-2021-9178).
  • Resolution of February 23, 2023, from the CNMC, to adapt the rules to the economic regime of renewables and the evolution of the agents committee (BOE-A-2023-5582), and resolution of May 23, 2024, replacing them to incorporate European intraday auctions (BOE-A-2024-11958).
  • Resolution of February 28, 2025, from the CNMC, publishing rules adapted to quarter-hourly negotiation and new offer types (BOE-A-2025-4908).
  These rules specify the marginalist design, offerable products, time horizons, and matching that generates the hourly (or quarter-hourly) price in the wholesale market.

3. Charges, tolls, and role of operators

• Royal Decree 148/2021, of March 9, establishing the methodology for calculating electricity system charges (BOE-A-2021-4239). It develops Law 24/2013 regarding:
  • Methodology and structure of charges (regulated part of the energy and power term distinct from network tolls).
  • Hourly signals (peak/flat/off-peak discrimination) coordinated with tolls defined by the CNMC.
  • Influence of these charges on the regulated part of the bill, which adds to the hourly market energy price.
• Orders on charges and other regulated costs, such as Order TED/1484/2021 (charges 2022, BOE-A-2021-21794) or Order TED/1487/2024, setting charges and other costs for 2025 (BOE-A-2024-27289). They apply annually the methodology of RD 148/2021 and condition the regulated component of the final price.

4. PVPC and formation of the hourly price for regulated consumers

• Royal Decree 216/2014, of March 28, establishing the methodology for calculating voluntary prices for small consumers and their contracting regime (BOE-A-2014-3376), partially amended, among others, by Royal Decree 469/2016 (BOE-A-2016-11094) and by RD 148/2021 itself. It is the central PVPC regulation:
  • Defines the PVPC structure and scope (low voltage up to 10 kW).
  • Establishes that the PVPC production cost is calculated based on the hourly day-ahead market price, incorporating real consumption profiles or hourly curves.
  • Articulates the translation of the hourly wholesale price to the regulated retail bill.
• Resolutions on operation procedures linked to PVPC, such as the Resolution of June 30, 2023, from the Secretary of State for Energy, approving operation procedure 14.12 on “Estimation of the cost of PVPC components” (BOE-A-2023-15276). It details how the different PVPC components are broken down and estimated with hourly granularity.
• Resolution of April 28, 2021, on the billing model, setting the minimum content and format of electricity bills from reference suppliers (BOE-A-2021-7120). It does not define the price but does specify how the consumer is shown the result of that hourly calculation.

5. Temporary mechanisms on the wholesale price

• Royal Decree-law 10/2022, of May 13, temporarily establishing a production cost adjustment mechanism to reduce electricity prices in the wholesale market (BOE-A-2022-7843). It introduces the so-called “Iberian gas cap,” which temporarily alters the formation of the marginal wholesale price and, by extension, the hourly prices feeding the PVPC.

Altogether, these regulations combine: the sector’s structural law, wholesale market regulation and its operating rules, the methodology for charges and tolls, and the specific PVPC regulation, which translates the pool’s hourly price and regulated components into the final price paid by consumers under the regulated market.

The National Commission on Markets and Competition (CNMC) is the independent regulator of energy markets in Spain, and in the electricity sector it performs key functions to ensure efficient, transparent operation for the benefit of consumers. Its competencies combine economic regulation, technical supervision, competition defense, and user protection.

1. Economic regulation of networks and tolls

One of the CNMC’s central functions in the electricity sector is the economic regulation of network activities, which are natural monopolies:

• Setting or proposing tolls and access charges to transport and distribution networks, i.e., the regulated part of the bill that remunerates the use of electrical infrastructures.
• Calculation of remuneration for transport and distribution companies (mainly the recognized remuneration for Red Eléctrica and distributors), establishing frameworks that incentivize efficiency and service quality.
• Methodologies for calculating costs and regulated parameters (remuneration rates, asset useful life, etc.), ensuring they are transparent, objective, and non-discriminatory.

2. Supervision of the functioning of electricity markets

The CNMC monitors the correct functioning of the different segments of the electricity market:

• Wholesale market (electricity pool): analyzes daily and intraday matching of offers, detects possible price manipulations or abusive practices, and verifies that agents act according to market rules.
• Balancing and adjustment services markets: supervises services that maintain the balance between generation and demand and system security.
• Retail market: controls the actions of suppliers, consumer offers, and transparency of supply conditions.
• Application of European market integrity regulation (REMIT), investigating possible insider trading or market manipulation cases in energy.

3. Defense of competition in the electricity sector

As a competition authority, the CNMC ensures that no conduct distorts competition:

• Investigation and sanctioning of anticompetitive practices (cartels, abuse of dominant position, price-fixing agreements, or market sharing among electricity companies).
• Control of business concentrations in the electricity and energy sector, assessing whether a merger or acquisition may reduce competition and, if so, imposing conditions or proposing prohibition.
• Reports and recommendations on sector structure and entry barriers, proposing reforms to promote more competition and efficiency.

4. Consumer protection and transparency

The CNMC also plays a relevant role in protecting electricity users:

• Supervision of consumer information in bills, commercial offers, and comparison tools, so users can understand prices and conditions.
• Control of commercial practices by suppliers (e.g., door-to-door sales, unauthorized company changes, or abusive clauses).
• Management of complaints and inquiries within its competence, issuing criteria and instructions guiding companies and consumers.
• Publication of reports and statistics on prices, service quality, supplier switching, and other market indicators.

5. Arbitration, conflict resolution, and European coordination

Finally, the CNMC acts as arbitrator and liaison with other regulators:

• Resolution of conflicts among electricity system agents (e.g., between generators, suppliers, and network managers) related to network access, installation connection, or technical and economic conditions.
• Supervision of network planning from economic and competition perspectives, issuing reports on transport and distribution planning proposals.
• Cooperation with European regulators and participation in bodies such as ACER and CEER, for integration of European electricity markets and operation of coupled markets.

Overall, the CNMC’s functions in the electricity sector seek to balance three objectives: ensure secure and quality supply, promote competitive and efficient markets, and protect consumers through transparency and active supervision of prices, networks, and business conduct.

To subscribe to the Voluntary Price for the Small Consumer (PVPC), i.e., the regulated electricity tariff in Spain, the electricity regulations precisely define which supply points and types of consumers can contract it, as well as the technical conditions and the link with reference suppliers. Additionally, access to the social bonus requires further requirements.

1. Basic regulatory framework

The PVPC is mainly regulated in:

• Law 24/2013, of December 26, on the Electricity Sector, which defines the concept of vulnerable consumer and empowers the Government to regulate the PVPC.
• Royal Decree 216/2014, of March 28, on the methodology for calculating voluntary prices for small consumers and their contracting regime, amended by Royal Decree 469/2016.
• Royal Decree-law 18/2022, of October 18, introducing adjustments in the way PVPC is calculated.
• For the social bonus, Royal Decree 897/2017, of October 6, and Order ETU/943/2017, which develop the figure of the vulnerable consumer and discount conditions.

2. Type of supply point and maximum power

The PVPC structure itself, as explained in Royal Decree 216/2014 and its amendment by Royal Decree 469/2016, is designed for small consumers in low voltage. In practice, this translates to:

• Supplies connected in low voltage (those typical in homes and small premises).
• Contracted low power, typically associated with small consumers (homes and small businesses). Sector regulations limit the PVPC scope to low powers and exclude large consumers and high voltage installations.
• Supply points may be linked to both domestic consumers and small professionals or businesses, provided they meet the PVPC’s voltage and power limits.

Consequently, a company or administration with a low voltage supply and low power can be on PVPC, but the social bonus is reserved for domestic consumers in their habitual residence.

3. Contracting through a reference supplier

An essential requirement is to be in the regulated market, not the free market. PVPC can only be offered by so-called reference suppliers (COR), designated by the Administration.

• Royal Decree 897/2017 expressly establishes that PVPC and the social bonus can only be applied through a reference supplier, not any free market supplier.
• If the consumer is in the free market and meets the small consumer conditions, they have the right to switch to PVPC without penalty, and the current supplier must inform them of this possibility and the existence of the social bonus when applicable.

4. Conditions on the meter and hourly measurement

PVPC regulations are designed to operate with hourly prices and detailed settlements. Hence the importance of the meter:

• The electrical system relies on meters with remote management and hourly measurement capability, so the consumer can be charged the price corresponding to each hour of the day.
• When full remote management is not yet available, regulations provide alternative mechanisms (consumption profiles, later adjustments) that allow PVPC to continue being applied. That is, the smart meter is desirable and foreseen by regulation, but lack of remote management alone does not exclude the right to PVPC; it conditions the billing method.

5. Additional requirements for the social bonus

Access to the social bonus is not a requirement to be on PVPC, but it does require additional conditions, regulated by Royal Decree 897/2017:

• Be a natural person, holder of the supply contract under PVPC.
• The contract must correspond to the beneficiary’s habitual residence.
• Meet the income thresholds and vulnerability conditions (vulnerable, severely vulnerable, risk of social exclusion) defined in article 3 of the royal decree, or belong to certain protected groups (e.g., pensioners with specific characteristics).
• Request it expressly from the reference supplier, providing the necessary documentation and authorizations for the Administration to verify the requirements.

In summary, to access PVPC it is enough to have a low power supply point in low voltage and contract with a reference supplier in the regulated market; to benefit from the social bonus, it is also necessary to be a domestic consumer in a habitual residence and meet the economic and social vulnerability criteria set by Royal Decree 897/2017 and its implementing regulations.