Friday, 23 March 2012

Electricity price hikes expected on April 1

SPAIN We told you about the price hike last week but here is the reason behind it, and the percentages. The electric companies' association, Unesa, says that the peajes should be going up by 30%, which would amount to about 15% on our electricity bill. The Supreme Court sided with the companies and ordered the price hike that should have taken place on January 1 to happen as soon as possible. However, the peaje and the price the companies have to pay for the energy have come down, which means that the bills should not go up by more than 12 or 13%. The Spanish power system is so convoluted and complicated to explain that we are not bothering to do so, but way of a general concept you should know that, first, what is called a Tarifa de Último Recurso (TUR, or 'tariff of last resort') and to which some 20 million consumers -that is, the vast majority including us- are subscribed, and which is revised every three months, is made up of two components: the peajes that pay the companies and are regulated by the government, and, second, the price of energy that results from an auction called Cesur (please don't ask, just accept!).

No comments: