Central Government has announced its intention “not to touch the price of electricity for the rest of the year,” following an all time high price hike of 9.8% in January this year.
The Minister of Industry, Tourism and Commerce, Miguel Sebastion described the January rise as “exceptional, inevitable and necessary” and vowed not to increase the regulated part of the tariff on July 1.
However, the Government can only control the regulated part of the tariff of “last resort.” The other part of the price depends on the price the electricity companies pay at the “subasta” (auction) of electricity on June 21.
In January the price that the companies paid for electricity fell by 10% but this reduction was not passed onto the consumer. In fact the Government approved the steepest price rise ever of 9.8% to assist the electricity companies reduce their debt. This month the Minister says “unless the sale price of electricity is very negative” there will be rise in tariffs.
