Electricity import cuts cost Portugal over €17 Million
These fluctuations in wholesale market prices do not immediately affect most consumers, but customers on indexed tariffs may notice price changes.
The suspension of electricity imports from Spain following a major blackout on April 28 has already cost the Portuguese national power system €17.4 million, according to data released by REN – Redes Energéticas Nacionais.
The temporary isolation of the Iberian electricity market led to a sharp rise in wholesale prices in Portugal, with the divergence costing the system up to €3,000 per minute during the early days of this week.
As of this Monday, the average wholesale electricity price in Portugal soared to €43.94 per megawatt-hour (MWh), nearly four times higher than Spain’s average of €10.89 per MWh.
While prices in Portugal ranged from €30.36 to €62.73 per MWh, Spain saw a maximum of €35 and even reported negative prices, with a minimum of -€4 per MWh.
The normally integrated Iberian market typically keeps prices in Portugal and Spain aligned.
However, following last week’s blackout, REN suspended commercial electricity imports from Spain for security reasons.
Although the two markets were briefly back in sync on April 29 — both recording an average price of €5.79 per MWh — the days that followed revealed increasing volatility.
On April 30, Spain’s price rose to €31.83 per MWh while Portugal settled at €20.54.
The trend reversed on May 1, when Portugal paid more than Spain, a pattern that intensified by May 5, with the price gap peaking at over €30 per MWh.
These fluctuations in wholesale market prices do not immediately affect most consumers, who are typically locked into fixed-rate contracts for 12 months.
However, customers on indexed tariffs may notice price changes — though the impact might be softened by several days of negative pricing in April, which could help offset recent spikes.