How the kWh electricity price in Spain is set: OMIE wholesale auction, regulated charges, and the difference between PVPC, fixed and indexed tariffs. Live PVPC data from REE.

The kWh electricity price in Spain

TL;DR

The kWh price has two parts: a regulated component (grid charges, system charges, taxes) that everyone pays the same, and a commercial component that depends on your tariff. The commercial component is either PVPC (changes every hour, indexed to the wholesale market) or free market (fixed, or indexed with a retailer margin). The live block at the top of this page pulls today's official PVPC curve straight from REE.

The "PVPC live" strip at the top tracks REE-eSIOS indicator 1001 (PVPC Total), refreshed hourly.

How the kWh price is built

The wholesale price is decided in a daily auction at OMIE (the Iberian Energy Market Operator). Each day, OMIE publishes the hourly price for the next day.

Your final bill isn't just that wholesale price. It carries on top:

Transport and distribution charges (regulated by the CNMC, Spain's energy regulator).
System charges (regulated by the relevant ministry).
Electricity duty (impuesto eléctrico) and VAT.
Retailer margin (on free-market tariffs).
Meter rental (alquiler de contador).

A PVPC tariff passes the wholesale price through to you hour by hour, with regulated charges added on. A fixed tariff charges the same price all year and the retailer absorbs (or pockets) the gap against the wholesale market. An indexed tariff tracks the wholesale market with a retailer margin layered on top.

Which type suits you?

We break this down properly in PVPC vs free market and fixed vs indexed tariffs. The short version:

PVPC is usually the cheapest option when renewable generation is high and gas dependency is low — but it's volatile. If an unexpectedly high bill in a bad month would stress you, avoid it.
Fixed gives you a predictable bill. You pay a margin for that predictability.
Indexed sits in between: it tracks the wholesale market but with a margin or cap layered on.

Frequently asked questions

What's the cheapest kWh price of the day? Usually off-peak hours (early morning, weekends, national bank holidays) and midday when solar generation is high. The most expensive peak hours are typically evenings on weekdays.

Is "kWh price" the same as "electricity price"? Not exactly. In casual Spanish, "precio luz" usually means power term + energy term + taxes added together. "kWh price" refers only to the energy consumed.

Why does my bill go up in winter even when the kWh price doesn't change much? Because you use more kWh: heating, longer lighting hours, heavier appliance use. The main driver of your bill isn't the €/kWh, it's how much you consume.

Is there a price cap? The gas-price cap (the so-called "Iberian exception") was a temporary measure and is no longer in force. The wholesale price is set freely in OMIE.

Related concepts

Sources

REE — eSIOS — official hourly PVPC price (indicator 1001) and consumption profiles.
OMIE — hourly wholesale price.
CNMC (National Commission on Markets and Competition) — regulated grid and system charges.

The kWh electricity price in Spain: PVPC, free market, and how it's set