The price of electricity could shoot up again starting in October. If the government does not take measures to avoid it, electricity bills will spike 5.9% and will result in a total annual increase of 16.5% for the 24 million homes and small companies belonging to the Tarifa de Último Recurso, a use-based tax on power in Spain.
The ultimate decision will have to be adopted tomorrow by the Government Commission for Economic Affairs and within the sector it is feared that the Minister of Industry could make a decision based on election politics and stymie the rate increase. This is something that would provoke a sharp fall in investments, loss of employment and a high deficit.
Last Monday the electric company Unesa has demanded a rise in electricity prices of at least 4% even though it is understood that this step would not do much to relieve the problem of insufficient tariffs within the sector. Going forward with the reviewed plan, there will be tariff deficit close to 350 million euros.
Revising the rate calculation
Perpetually rising prices are upsetting the National Energy Commission, which is opening an investigation on the situation. Yesterday this institution assured that the method for calculating the rate is not sufficient.
