Yesterday a 11% price rise for domestic electricity customers was announced but today the Government has declared the rise “unacceptable” and it has been suspended.
The National Commission for Market Competition (CNMC) has decided not to approve yesterday´s wholesale energy auction due to “possible price fixing” and the “elevated cost of electricity” over the previous weeks.
According to sources close to the “super regulator” the CNMC does not have the power to anul the auction but according to the data received the auction did not comply with the conditions for approval.
Now the Secretary of Energy must decide whether to anul yesterday´s auction or not. He has opened an investigation into possible price fixing which must report within 24 hours and the results of which will be made public. He has declared the 11% price is “unaccceptable.”
On December 10 the Office of the Regulator Supervisor (the super regulater) opened an information procvess to analyse “unusual movements” which produced price fixing on the wholesale energy market.
The President, Mariano Rajoy, has confirmed that the Government is “trying to correct the 11% price rise” which would take effect from January 1, 2014.
