The price of a kilowatt of electricity on Wednesday of this week was exactly double the price paid by consumers at the same time last year: 75.93 euros.
As the price has steadily risen of the last few months various factors have been blamed: the rise in the price of a barrel of petrol; no rain; too much rain etc. The result has been a general clamour for Central Government to step in and take measures to reduce costs for the consumer.
One of the problems with the price of electricity in Spain is that it is subject to market pressures at “auction” every month, and unless the Government change the system the price fluctuations will continue. However, one move they can make is to reduce the “fixed” costs: (standing charges).
To this end the Government announced on Wednesday they would be suspending the seven percent “generation of electricity tax,” thus reducing the price of a kilowatt to 73.23 euros.
The main consumer associations have described the Government move as a “patch” and have called for an immediate reduction of IVA on electricity from 21% to four percent.
The change will not effect this month´s electricity bill.
