Wholesale electricity prices in Italy surged to their highest level in nearly three years on Monday, driven by a combination of elevated natural gas costs and intense summer demand.

The average daily price on the Italian power exchange reached €197.71 per megawatt-hour on August 3, according to market data reported by Il Sole 24 Ore.

This represents a significant jump from the previous day’s average of €165.39/MWh, underscoring the volatility currently characterizing the European energy complex.

The spike marks the first time Italian power prices have breached the €190/MWh threshold since January 2023.

The rapid escalation over a 24-hour period highlights the sensitivity of the Italian market to input cost fluctuations and weather-driven load increases.

As temperatures remain high across the Mediterranean, the demand for cooling is placing additional strain on the grid, while the underlying cost of gas-fired generation continues to exert upward pressure on wholesale rates.