The cost of electricity in Spain will rise by 2.3% in January for the first quarter of 2014, after the Government chose the lowest increase proposed by the National Commission on Financial Markets and Competition, thus resulting in the fifth consecutive year of electricity price increases.

In fact, since 2008, the price of electricity paid for domestic consumption has increased by 60%, according to the European statistical office Eurostat. The increase electricity tariff for industrial use has also rocketed by been 27% since 2008, the fifth highest in the EU.

Data before 2008 is not available as it was in that year that the current method of monitoring was first adopted, although by comparing the price to 2006, when the government removed the limit of 2% annual increase established in 2002, the figures now represent a staggering 70% increase.

The latest wholesale price auction was cancelled by the government, after the anticipated 25.6% increase on supply would have meant a 10.5% hike on domestic bills, which the government considered was not affordable.

The CNMC finally submitted a proposal to the government with several alternatives for setting the price of energy, rather than through the auction process, thus resulting in the approved increase of 2.3%.

Filed under: http://www.theleader.info/article/42060/

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