Price of electricity today, September 22: the most expensive hour will be from 20:00 to 21:00 and the cheapest from 14:00 to 15:00

In the Spanish wholesale market, the daily electricity price is set through a set of regulated mechanisms that combine European and Spanish regulations, the operation of OMIE (market operator), and the balancing services managed by Red Eléctrica de España (REE), under the supervision of the CNMC. The result is a marginalist system in which, for each hourly or quarter-hourly period, all power plants receive the price of the last offer needed to cover demand.

1. Basic regulatory framework

The general architecture of the system is found in the Law 24/2013, of December 26, on the Electricity Sector, which defines generation, marketing, transmission, and distribution activities, and assigns the Government and the CNMC the development of wholesale market regulation and system operation.

On this basis, three major regulatory blocks are supported:

• European regulation of the internal electricity market, especially:
  • Regulation (EU) 2015/1222 (CACM), which sets the rules for day-ahead and intraday market coupling and capacity allocation on interconnections.
  • Regulation (EU) 2017/2195 (EBGL), which establishes the framework for balancing markets.
• The CNMC Circular 3/2019, which specifies the methodologies for the operation of the wholesale market and system operation: how offers are matched, how congestions are managed, and how balancing and non-frequency services are designed.
• The operating rules of the day-ahead and intraday markets, approved and updated through resolutions of the State Secretariat for Energy and the CNMC (for example, the 2018, 2021, 2023, and 2024 resolutions on day-ahead/intraday market rules and their adaptation to the quarter-hourly product and European coupling).

Additionally, various CNMC resolutions regulate the operation procedures (PO) applied by REE, and the conditions of balancing and non-frequency services, essential for adjustments after the daily auction.

2. Marginalist daily auction managed by OMIE

The core price-setting mechanism is the day-ahead market auction operated by OMIE:

• For each period of the next day (previously 24 hours; now progressively 96 quarter-hour periods), generating companies submit sell offers indicating how much energy they can produce and at what minimum price.
• Retailers and other buyers submit buy offers based on the expected demand of their customers.
• OMIE orders generation offers from lowest to highest price and matches them with demand until the required volume is covered.
• The last accepted offer (the most expensive necessary to meet all demand) sets the marginal price for that hour or quarter-hour.

This marginalist system, common in the EU, means that all matched technologies receive the same price, even if many offered below it. Therefore, when gas plants with high costs enter (for example, if the international gas price rises or demand is high), the price of the entire market increases.

The European CACM regulation and recent CNMC resolutions have also promoted coupling with European markets and the evolution towards quarter-hourly products, increasing the number of periods (96) to better reflect the variability of renewable generation.

3. Intraday markets and short-term adjustments

After the day-ahead auction, there are intraday markets also regulated in market rules and Circular 3/2019:

• Several intraday auctions at different times of the day, where agents correct their positions if wind, solar, or demand forecasts change.
• A continuous intraday market, where trading occurs almost in real time, with harmonized rules and price limits at the European level.

These markets do not replace the day-ahead market but modulate the production and consumption schedule and can alter the effective prices at which part of the energy is settled.

4. Balancing services and system operation (REE)

Once daily and intraday schedules are obtained, REE acts as the system operator. Under the framework of Law 24/2013, Circular 3/2019, and subsequent resolutions (such as those related to balancing and non-frequency services), REE contracts and activates:

• Balancing reserves (secondary, tertiary, replacement, etc.), to correct deviations between scheduled and actually generated or consumed energy.
• Non-frequency services (voltage control, technical constraints, interruptibility in the past, active demand response, etc.).

These services are awarded through competitive mechanisms, often also marginalist: offers are matched and a marginal service price remunerates all accepted providers. The cost of these services is subsequently passed on to the system and ultimately influences the effective price paid by consumers with regulated tariffs.

5. Price limits, capacity mechanisms, and supervision

The regulation provides, in coordination with the EU, maximum and minimum offer limits in the day-ahead and intraday markets, as well as exceptional mechanisms (for example, for extreme prices or decouplings). The CNMC sets methodologies and approves rules, and the Ministry of Energy issues orders affecting charges and other regulated components.

On the other hand, the Government is developing capacity mechanisms (firm power auctions and availability payments) to ensure sufficient resources at critical moments. These mechanisms do not set the daily pool price but influence investment decisions and the cost structure of plants participating in the marginalist auction.

Overall, the daily price setting in the Spanish wholesale market results from the OMIE marginalist auction, refined by the intraday markets and the balancing services managed by REE, all embedded in a regulatory framework where the Electricity Sector Law, CNMC Circular 3/2019, and European internal market regulations play a central role.

The National Commission on Markets and Competition (CNMC) acts as an independent regulator in the Spanish electricity sector. Its powers are mainly based on the Law 3/2013, establishing the CNMC, the Law 24/2013, on the Electricity Sector, and adaptation to European law (Directives 2009/72/EC and Regulation (EU) 1227/2011 – REMIT, among others). Its functions combine regulation, economic supervision, competition control, and sanctioning authority.

1. General function as energy regulator

Law 3/2013 creates the CNMC with the purpose of guaranteeing the proper functioning, transparency, and effective competition in all markets, including electricity. In the energy field, the Government and the CNMC share powers, but the law strengthens the latter's role as an independent regulator in line with the requirements of European law on the internal electricity market (Directive 2009/72/EC and its subsequent development).

Within this framework, the CNMC:

• Supervises and controls the operation of the electricity and gas markets, monitoring prices and agent behavior.
• Issues normative circulars that develop key technical and economic aspects of energy regulation, especially after Royal Decree-Law 1/2019, which adapts its powers to community requirements.
• Issues resolutions and interpretation criteria published in the Official State Gazette, with legal effects on operators and network managers.

2. Supervision of the wholesale market and system operation

Article 7 of Law 3/2013 assigns the CNMC specific supervisory functions in the electricity sector. Among them, the following stand out:

• Market methodologies and system services: it can establish, through circulars, methodologies related to the operation of the wholesale electricity market and the provision of balancing and non-frequency services (for example, voltage control services), seeking the lowest cost and fair and non-discriminatory treatment for participants. An example is the resolution of June 12, 2025, which adapts operation procedures for the new voltage control service in the peninsular system.
• Remuneration of the system operator (REE): it determines, also through circular, the remuneration methodology of the electricity system operator and calculates each period the balance of the so-called “regulatory account,” linking remuneration to the services effectively provided and cost efficiency objectives.
• Adaptation to European regulations: its decisions are coordinated with European market regulations (for example, Regulation (EU) 2017/2195 on balancing services) and with regulatory authorities of other Member States.

3. Access and connection to transmission and distribution networks

Article 33 of the Law 24/2013 on the Electricity Sector establishes a division of functions between the Government and the CNMC regarding network access and connection. In particular:

• The CNMC is responsible for approving, through circulars, the methodology and conditions for access and connection to transmission and distribution networks. This includes:
  • The content of access and connection requests and permits.
  • The applicable economic criteria.
  • Criteria for evaluating available capacity at each node.
  • Reasons for denying access.
  • Minimum content of contracts and obligations for publicity and transparency of relevant information.
• It develops these powers through resolutions that specify, for example, detailed specifications for calculating access capacity to the generation and demand network, separating criteria for transmission and distribution networks.
• It sets standardized formats for publishing access capacity by network managers, facilitating transparency and comparability of information for developers.

4. Settlements, regulated tariffs, and economic balance of the system

Since Law 24/2013, the CNMC is responsible for settlements in the electricity sector: it calculates the difference between regulated revenues (mainly tolls) and recognized costs of regulated activities. Provisional imbalances (the so-called tariff deficit or surplus) are determined based on this settlement function and the provisions of Article 19 of the Electricity Sector Law.

Also, in development of Article 7 of Law 3/2013, its circulars set methodologies for tolls and remunerations of networks and other regulated elements, a central piece of the tariff structure of the electricity system.

5. Competition supervision and sanctioning authority

Beyond its regulatory role, the CNMC retains the classic functions of a competition authority:

• Investigates and sanctions conduct that distorts competition in the electricity market (cartels, abuse of dominant position, price manipulations), applying Law 15/2007 on Defense of Competition and Article 102 of the TFEU.
• Applies Regulation (EU) 1227/2011 (REMIT) on integrity and transparency of wholesale energy markets, pursuing market manipulation practices and insider trading in electricity and gas.
• Initiates sanctioning proceedings against electricity companies (producers, distributors, retailers) when it detects breaches of electricity regulation or competition law.

6. Regulatory advice and institutional coordination

The CNMC issues reports on regulatory projects affecting the electricity sector and can propose regulatory improvements, often at the Government's initiative. Additionally, it maintains coordination channels with competent ministries and the system and market operator to exchange information, enhance transparency, and detect possible irregular behaviors.

Overall, these powers position the CNMC as a central piece in the economic regulation of the Spanish electricity sector, ensuring convergence with the European framework, market transparency, and protection of consumers and competition.

In Spain, to access the regulated electricity tariff (PVPC) and the electricity social bonus, there are two blocks of requirements: first, regarding the type of contract and power; then, regarding the economic and family situation of the consumer. Both instruments are mainly regulated by the Electricity Sector Law 24/2013, Royal Decree 216/2014 (PVPC), and Royal Decree 897/2017 (vulnerable consumer and social bonus), with successive modifications.

1. Requirements to contract the regulated tariff (PVPC)

The PVPC is the Voluntary Price for the Small Consumer, the regulated tariff whose price is calculated according to rules set by the Government. It can only be offered by a limited number of reference retailers.

The basic requirements are:

• Voltage and power of the supply: the supply point must be low voltage (≤ 1 kV) and the contracted power cannot exceed 10 kW, according to Royal Decree 216/2014.
• Type of client: natural persons who are holders of the contract for their habitual residence and also certain microenterprises, always within the indicated power limits (as noted by the Ministry for Ecological Transition regarding PVPC).
• Appropriate company: the contract must be signed with a reference retailer (not with any company in the free market).
• Habitual residence: in practice, PVPC is linked to the supply point that constitutes the habitual residence of the holder, especially when it grants access to the social bonus.

Any consumer who meets these technical requirements and contracts with a reference retailer can be on PVPC, without needing to be vulnerable.

2. Requirements to access the electricity social bonus

The social bonus is a discount on the PVPC bill, aimed at vulnerable consumers. In 2026, according to Moncloa notes and Demócrata analyses, the discounts are 42.5% for vulnerable consumers and 57.5% for severely vulnerable ones, within certain annual consumption limits.

2.1. Preliminary requirements (contract)

• Be on PVPC at the habitual residence.
• Contracted power ≤ 10 kW.
• Holder is a natural person (not a company) and appears as the supply holder. If not, the holder can change the ownership when requesting the bonus, according to Royal Decree 897/2017.

2.2. Income and family composition requirements

Article 3 of Royal Decree 897/2017, in its updated wording, defines the vulnerable consumer based on the income of the household unit, using the IPREM of 14 payments as a reference:

• General rule: annual income ≤ 1.5 times the IPREM for a single person (€12,600 in the 2026 examples published by the Government).
• The threshold increases by 0.3 times the IPREM for each additional adult and 0.5 times the IPREM for each minor in the household unit (for example, two adults and one minor can reach €19,320 annually).
• Severely vulnerable consumer: income ≤ 50% of the threshold corresponding to vulnerable, or slightly higher specific limits in the case of large families and minimum pensioners (also provided in Royal Decree 897/2017).

2.3. Special circumstances that raise the threshold

Income multipliers increase by 1 time the IPREM if the household unit includes any of these situations (Article 3.3 of Royal Decree 897/2017, reinforced by Moncloa notes):

• Recognized disability ≥ 33% in any member.
• Victim of gender-based violence or terrorism.
• Dependency degree II or III.
• Single-parent family with at least one minor dependent.
• Electrodependence (medical need for electrical equipment).

2.4. Specific access routes

Besides the general income route, Royal Decree 897/2017 recognizes as vulnerable consumers:

• Holders with a valid large family certificate (currently with additional income requirements under review according to the 2026-2030 Strategy against energy poverty).
• Households where the holder and income-earning members receive the minimum retirement or permanent disability pension and have no other aggregated income exceeding €500 annually.
• Household units where the holder or any member is a beneficiary of the Minimum Living Income.

3. Consumer at risk of social exclusion

Royal Decree 897/2017 itself creates the category of consumer at risk of social exclusion: someone who is severely vulnerable and is assisted by social services of an Administration that finances at least 50% of the bill. For these cases, the law establishes that the electricity supply cannot be suspended for non-payment while these conditions are maintained.