Electricity prices to be raised again in Spain
Energy prices look set to rise for the second time this year in Spain as the Ministry of Industry proposed an increase in the price of electricity.
The ministry has proposed a 10-percent price hike for small businesses and a 5-percent rise for medium- and large-sized companies as of July 1.
Meanwhile, Spain´s 26.8 million homes would face price rise of around 4 percent. These figures would be further raised by a 2-percent increase in VAT (from 16 to 18 percent), which will also take place in July.
The proposed hike is aimed at slowing down the increased demand for electricity, which is expected to rise by 2.25 percent during a period between 2009 and the end of this year.
Spain has already witnessed more rises in electricity prices than its European neighbors. While prices in the euro zone rose by an average of 0.8 percent between the second half of 2008 and the end of 2009, Spain saw the cost of electricity increase by 8.2 percent.
Consumer groups are angry at further price rises as the price of 100 kilowatts in Spain is 16.84 euros (20.11 U.S. dollars), the seventh highest in the 16-member euro zone.
“It is a big blow to consumers,” said Ileana Izverniceanu, spokesperson for the Organization for Consumers and Users.
The consumer group called the plans “completely unacceptable in the middle of a deep crisis, when inflation is not even running at 1 percent.”
