Electricity Prices increase by two percent on July 1

[Robin]

It comes with the complicated process to liberalise the power sector in Spain

The Government has announced that the electricity bill will increase by 2% on July 1, the date that the liberalisation of power suppliers arrives in Spain. It comes in addition to the 3.5% increase at the start of the year.

The reason that most of the power companies have issued no new offers to attract new clients is because they have been waiting for the Government to fix a new maximum price and that is what has now been announced – an increase of 2%. Those that have offered a discount have kept it below 3.5%.

As well as the traditional power companies, there are more than 20 new operators who will be operating after July 1.
Those whose power connection is between 3kw and 10kw will be able to choose supplier, an estimated 90% or 22 million of current clients.

This is with the introduction of the TUR, the Last Resource Tarrif, where a maximum price will be fixed by the Government every quarter in line with the cost of raw materials and demand. There are two types of TUR, one where you pay the same price whenever you use your power, and another where power is cheaper when used off-peak but more expensive at peak times.

Meanwhile natural gas prices for domestic consumers are to fall – by 0.1% if you do not have gas central heating, and by 5.4% if you do.

source typically spanish

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