ELECTRIC SHOCK

Electricity price hits peak for 2018 this week costing an average €4.5 more

THE PRICE of electricity - which is passed on to users' bills - this week hit its highest level of this year and reached a figure unseen in August in the past 10 years.

The price charged hit €74.58 per Megawatt per hour (MWh) on Wednesday.

The August surge actually means an average household using 200KWh will today be paying €4.5 more on their bill than at the beginning of the month.

The complex billing system in Spain means tariff changes occur daily and electricity prices are different from one day to the next and even if prices drop in forthcoming weeks, the average electricity bill in Spain at the end of this year will be the highest in 20 years.

In addition to costing users more, the staggering increase in tariffs has led the government to sound the alarm bells and seek formulas to reduce the rates nationwide.

Energy minister Teresa Ribera is due to appear in the parliament commission shortly, to explain the electricity price surge and is expected to announced plans to reduce bills.

Meanwhile, energy suppliers deny any sort of 'artificial' tariff increases and blame the rise on market condition: a drop in the renewable wind power production leading to an increase in power supplies by gas and coal plants. Coal is currently priced at the highest level since 2011 and gas prices have rocketed at the same rate as oil barrels.

Minister Ribera is expected to announce change to the current wholesale energy market system and more support for cheaper renewable energy production. Ordering a full investigation by the CNMW stock exchange commission is also in the cards.

Estimates made by the Spanish association of high engergy consumption companies (AEGE) forecast this average price of MWh for 2018 will be €59.8 - 14.6% more than last year.

However, only 40% of your electricity bill is actually power consumption (which will be affected by the increase). The remaining 60% includes unvariable fees comprising grid link-up charges and renewable energy fee, plus taxes.