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Spain's average Electric bill up 19% since January

Source: FACUA - Sat 25th Oct 2014
Spain's average Electric bill up 19% since January

A report by Spanish consumer association FACUA has revealed that the average Electricity bill in Spain has increased 19.2% - or EU13 in real terms - since January 2014.

The study also compared prices in September to the same month in 2013 and found they had increased by 7.8%, showing how prices have increased significantly since the Government changed the method of calculating tariffs last January.

The association has demanded that Government undertakes a review of the energy sector, and ensures that tariffs are based on actual costs of energy, and that Energy providers stop their policy of hiring Cabinet Ministers as 'advisors'.

The current PP administration changed the regulation of electricity tariffs last January, which resulted in the elimination of the wholesale market bid-based model introduced by the previous Government. José Manuel Soria, minister of Industry, Energy and Tourism, warned that on the last bid, that took place last December, there was "a clear manipulation", which resulted in an 11% increase in tariffs.

The bid had been causing a higher speculation on tariffs' setting - since the sector was deregulated - but the new model introduced by the PP is even worse than the previous one, as it allows more freedom for electricity suppliers to raise prices with the consumer being unaware of what they are paying until their bill arrives.

Based on January's tariffs the average user paid EU67.62 (16% less than January 2013), EU66.33 in February and March (17.6% less than on the same months in 2013), EU63.98 Euros in April (14.4% less), EU71.46 in May (4.4% less), EU75.31 in June (0.7% more than June 2013), EU73.88 in July (2.4% less), EU75.87 in August (a 1.4% more ) and EU80.63 in September (a 7.8% more than the EU74.87 paid in September 2013).

During Q1 of 2014, a discount was applied following the establishment of the new tariff, with the following 9 months seeing an average monthly price per kWh used (including taxes) has been 13.93 cents on January, 12.76 on February, 12.76 on March (following the discount of 3.03 cents per kWh used during Q1), 12.12 on April, 14.17 on May, 15.22 on June, 14.83 on July, 15.37 on August and 16.67 on September.

The fixed tariff was EU3.78 per kW of contracted electric load in January, the price set in August 2013, when the Ministry of Industry, Energy and Tourism approved the 62.8% increase on the EU2.32 set in April 2012. In February, the Government raised the tariff again by 17.9%, to EU4.46 per kW.

This equates to a 92.2% increase year to date in real terms.

In April FACUA reported the Spanish Government to the European Commission, considering that the new formula to set tariffs breaches the EU directives on electricity, consumers' rights and unfair terms. The association expects that Brussels Government will penalise Spain and stop the chaotic tariff model imposed by the Government.

Recommended Reading :

* Spain's energy providers given freedom to impose hikes

* Spain has one of highest costs of electricity in Europe : Study

* 1 in 4 Complained to Spain electricity providers in 2013

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