European power markets are set to cut the hourly price limit to -€600 per megawatt-hour after the old floor of -€500 was reached on April 26 and again on May 1, 2026. [1]
The current lowest possible day-ahead price in European Union markets stood at -€500 per megawatt-hour before the change. [1] The new floor will take effect under an automatic adjustment mechanism overseen by the EU Agency for the Cooperation of Energy Regulators. [1]
That mechanism lowers the price floor by €100 if -€350 is hit twice within a 30-day period. [1] The repeated breaches of the existing floor came during an intense period of volatility in the market. [1]
European power markets have already touched the -€500 level twice in recent days, a sign of heavy supply and weak demand at certain hours. [1] Bloomberg reported on May 4 that the hourly price floor was set to fall to -€600 per megawatt-hour. [1]
The change adds another buffer for market operators as prices swing deeper below zero at times of excess power supply. [1]