The wholesale price of electricity will exceed €100 per megawatt per hour at peak time of 9pm on Wednesday, according to market operator Omie.
The level is the highest reached since March 2014.
Homeowners are being warned by consumer associations that their electricity bill for January could rise by 20%.
So far in 2017 the average price per megawatt hour has been €67.47, a mammoth 113% increase on the same period last year.
Bill increases will depend on whether households have fixed rate contracts with their electricity companies or whether they are open to market fluctuations.
The soar in prices is due to extreme weather conditions which damaged energy production.
Solar and wind production were hit hard while households across the country cranked up their heating to keep warm.
- MUST READ: How to survive a rip current following deaths of two swimmers on Costa del Sol beach - 16 Jul, 2019 @ 11:43
- Man becomes second to die off Costa del Sol beach in just 15 days - 15 Jul, 2019 @ 16:35
- BRACE YOURSELVES: Hot winds to bring temperatures of up to 39C on Spain’s Costa del Sol TODAY - 15 Jul, 2019 @ 10:27
- WATCH: Stingray capable of killing humans spotted on shore metres from children on Spain’s Costa del Sol - 13 Jul, 2019 @ 09:13
- British expats arrested and fined in new crackdown on ‘pirate taxis’ at Malaga airport - 11 Jul, 2019 @ 14:31
- BREAKING: Body washes up on beach near Marbella’s exclusive Golden Mile - 11 Jul, 2019 @ 14:05
- HE’S THE DADDY: Court rules Javier Santos IS the love child of Spanish superstar Julio Iglesias - 10 Jul, 2019 @ 18:01
- ‘WRONG MESSAGE’: Young man who accidentally killed drug addict while stopping him from robbing helpless cleaner on Spain’s Costa del Sol given two-year prison sentence and HUGE fine - 9 Jul, 2019 @ 12:37
- British giant Virgin Trains eyes up moving into Spain market after UK becomes ‘uninvestable’ - 9 Jul, 2019 @ 11:49
- Expert says southern Spain and Balearics at ‘great risk’ of tsunamis but authorities ‘are not prepared’ - 9 Jul, 2019 @ 11:19