Business · Energy & Commodities · 8 hrs ago

Grid balancing costs drove two-thirds of Spain’s regulated power price rise

Grid balancing costs drove two-thirds of Spain’s regulated power price rise

Spain’s regulated electricity price rose 6.5% in September, reaching an average of €148 per megawatt-hour.

The increase affected the regulated tariff used by more than eight million households, including people eligible for the social electricity discount.

Grid balancing services accounted for two-thirds of the monthly rise, adding €9.86 per megawatt-hour before taxes to a total increase of €15.03.

These services help keep electricity supply and demand in balance, and include extra measures introduced after Spain’s April 2025 blackout.

Those measures involve scheduling gas-fired power plants and paying some industrial companies to accept planned interruptions to their electricity supply.

Higher international gas prices also pushed up electricity costs, while the regulated tariff’s use of futures-market prices helped limit the increase.

Customers on fixed-price contracts in the open market usually do not have these balancing costs passed on directly in their bills, according to the source.

Sources

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