European power markets are set to cut the hourly price limit to -€600 per megawatt-hour after an intense period of volatility where the existing floor price was reached a number of times.

Until now, the lowest possible day-ahead price in European Union markets was set at -€500 per megawatt-hour, a level reached on April 26 and May 1. Under an automatic adjustment mechanism overseen by the EU Agency for the Cooperation of Energy Regulators, the price floor must be lowered by €100 if -€350 is hit twice within a 30-day period.