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

Costa Blanca News (North Edition) - - FRONT PAGE - By James Parkes

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.

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