EXPERTS PREDICT 5% ELECTRICITY PRICE HIKE IN JANUARY

EXPERTS PREDICT 5% ELECTRICITY PRICE HIKE IN JANUARY

Financial experts are predicting a price increase in excess of 5% on domestic electricity bills in the New Year, on account of increases in the wholesale supply marketplace.

The wholesale electricity price has risen sharply in recent days, with increases of up to 13% possible, which also looks likely to continue, which could have an adverse affect on the energy auction and supply rate during the first quarter, which starts on the 19th of December.

This increase would mean a 5% increase in January, assuming the government keeps its promise on frozen tariffs for regulated activities.

The rate was up by 3% in January, down by 6.6% in April and picked up again by 1.2% in July, was up 1.2% as an additional tax in August to balance the reduction in profit that the supply companies faced, and increased by 3.1% in October´s review.

The auction to establish the public rate comes only a few days after the sharp increase in wholesale supply, which has raised some suspicions and enquiries by the National Commission on Financial Markets and Competition.

Secretary of State for Energy, Alberto Nadal, has said that there are factors that explain these prices, including the shutting down of three nuclear power plants; he also noted that the Government wants to ensure “that no external factor has influenced the price”.

Filed under: http://www.theleader.info/article/41946/

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