The current energy crisis due to the war in Ukraine is causing limitations in the electricity market. We have certainly had a complex year revolving around the price of energy, which is why the concept of the “Iberian exception” is all the talk of the town.


The “Iberian exception” is a term used to describe the intervention mechanism in the electricity market with the aim of lowering the wholesale market price and thus reducing the electricity bill for households and companies. In this way, it is possible to go from having an OMIE of 190-200€/MWh to 120-140€/MWh.

In principle, the Iberian derogation will allow the gas price to be capped at 40€/MWh for the first six months after its application. In other words, from 15 June until 15 December, the gas price will not be able to exceed these prices to define the OMIE result.  And what happens after that? It will go up by 5 euros per month until it reaches the limit of 70 euros on 31 May 2023.

The gas cap will be financed on the one hand through congestion income/rents, which are those revenues derived from the cross-border electricity transition between Spain and France that are calculated as the total energy exchanged by the price difference between the two zones. On the other hand, through a quota imposed by the Iberian countries on those buyers who benefit from the implementation of the measure.

This month marks three months of the Iberian derogation, and… How has it affected the price of electricity? Since the mechanism was applied, the wholesale price of electricity in Spain has distanced itself from European levels, as the tendency in France, Italy and Germany is for the price per megawatt hour not to fall below 200 €/MWh, while in the Iberian market the price has only exceeded that level on one occasion (reaching 201.96 €/MWh).

To calculate the price, it is necessary to look at what electricity would have cost in the absence of the mechanism and according to estimates, the savings for Spanish consumers affected have been 16.54% (€54.51).

Although it is an effective measure, it is not enough according to experts and should be complemented with other measures to solve the energy problem.