Now that temperatures are rising, consumers are sweating price hikes in natural gas and electricity.
Specifically, the Spanish government has decided to raise electric bills by 1.5% (about 0.5 euros more per months for consumers) and natural gas and butane have shot up 5.7%, according to an elEconomista report from May 23.
Yesterday the Secretary of Industry rationalized the incremental price spikes, but from the consumers´ perspective they seem excessive, particularly with regard to natural gas.
The increase means that typical users will have to pay 2.37 euros more per month, or 28.4 euros more per year. The extra costs will be greater for homes that use natural gas for heating and still higher for those who use it for cooking and hot water heaters.
Gas has risen a total of 4.1% in the month of July and 9.5% for the year. Spokesmen from the industry highlight that it has maintained gas fees that factor in regulatory costs, yet the price has still risen by 13.65%. There are currently 3 million clients paying an extra tariff placed on limited gas reserves. The number could rise by 7.3 million. Around 4.3 million are not subject to the fee because they have predetermined contracts.
Immediately after this announcement, the Association of Liquid Gas and Petroleum Operators claimed that it kept being insufficient because it kept the end price of a prime material beneath its real costs and prolonged a situation in which sales were operating at a loss. This dynamic has plagued the industry for 19 years.
Translated and Edited in English by Brandon Dyches and Jose L. De Haro
