Electricity Rates Hike in 2014

electric

New Year, new increase in cost of electricity, the story may be old but it is now becoming a serious problem as over the last 10 years the cost of electricity in the average home has soared by 78 per cent. The most worrying part of these increases is that we are seeing an average increase of 10 percent per annum since 2008.
The cost of electricity is set by the value the energy is sold at auction and the last auction which was held on December 19th and saw an increase in price of 11 per cent on previous auction price. Luckily for the consumer the government coming under pressure intervened and declared the auction void and the increase to be set at 2.3%
The rise for January is 2.3 percent for the majority of consumers who are on the TUR rate of billing which accounts for over 16 million homes throughout Spain. The average household uses 366kw of electricity at a potential of 4.4kw meaning the average bill will increase by two euros per month but more increases are expected to follow during the year.
Facua the Spanish Consumers in Action Association asked people to switch off their electricity on December 30th from 7pm to 8pm as a protest to the continual rise in electricity rates and highlighted

10 reasons why you should switch off the power.

  1. The government promised that the liberalising the electric sector would lower rates, they lied.
  2. We pay the electrical companies 6,000 million euros for the cost of the move of responsibility from government to private sector a cost that shouldn’t exist.
  3. The average electric bill has increased by over 78% in just 10 years.
  4. The auctions for power where they set the rates are not transparent.
  5. Because the electric companies are earning too much, in 2012 declared profits Iberdrola €2,841 million, Endesa  €2,034 million and Gas Natural Fenosa  €1,441 million.
  6. The last few governments have not upheld the directive to guarantee reasonable rates.
  7. The government doesn’t fix the rates according to real cost, the electric companies keep this secret.
  8. Presidents and minsters who were involved in the privatisation of this sector have positions and salaries from these companies.
  9. A necessity like electricity shouldn’t be object of a speculative auction.
  10. The government are allowing electricity to cut off from families who can’t afford to pay for it.
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