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Managing the power tariff deficit

Ten years of poor management within the Spanish power sector has created a 30-billion euro tariff deficit. Alberto Nadal, the Secretary of Energy, made it clear in an interview with elEconomista that he is serious about a concept that tries to mediate between production costs and consumer prices. As proof, power companies will end up in the red this year for the first time since 2014.

As in other areas of the economy, balancing the budget is a top priority. For the power sector, the national government should freeze regulated power costs for 2015 in order to keep the budget healthy.

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