The management of the Iberian spot electricity market is the responsibility of OMEL – Iberian Energy Market Operator – Spanish division, headed in Madrid that began its business in 1998.
On the spot electricity market, transactions are executed by the participation of agents on the daily and intraday market that aggregate, through market splitting, the Spanish and Portuguese zones of MIBEL.
Trading on the daily market is based on a daily auction, with settlement of energy at every hour of the following day. These prices can be different, namely when, for a given hour, the connection is congested, i.e. it is not enough to ensure all the electricity traffic between the two regions.
Complementarily, there are various intraday sessions, subsequent to the daily market auction, in which agents can trade electrical energy for the various hours of the day covered by that market. Trading is also done by auction.
The financial settlement of the transactions occurs weekly, and guarantees must be deposited.
Producers, self-producers, external agents (nonresident entities), retailers, representatives and qualified consumers can be spot market agents. With the entrance into effect of the International Agreement signed in Santiago de Compostela, on October 1st 2004, the entities authorised in Portugal, were allowed to act on the spot market by benefiting from automatic recognition. They were no longer considered external agents.
For further information, we recommend you visit the OMIE site.