Electricity goes up by 10%, gas by an average of 3.9%

As we announced here, electricity will be going up by 9.8% next on Saturday, January 1. That, according to the Minister of Industry, Miguel Sebastián, is the equivalent of a little over one coffee per month per inhabitant. The fact is, according to consumers' organizations, it actually means just under €7 per family per month (with national unemployment at 20%), taking the number of users as seventeen millions. Equally, the cost of a bombona will also rise by 43 céntimos per bottle. That usually means an increase in the price of petrol as well. The background to the increase is tied up in the Tarifa de Último Recurso (TUR, or Tariff of Last Recourse), in itself a complex system that allows the power companies (many of them producing record benefits) to up their prices independently of the taxes imposed by the government. The latter says it is not touching these taxes.>
The federation that groups the companies, Unesa, says that the increase is 'inevitable' and stems from severable variables, according to the Secretary of State for Energy, Pedro Marín, including an increase in the price of energy as a whole, that is 'pressuring upwards by four points' and a decree that forces the companies to use coal with a cost upwards of €600 millions in 2011.

The federation also points out that the increase is 'essential' in order to eliminate what it calls a tariff deficit (the difference between income and costs of the system) by 2013, which adds up to €20,000 million.

The price of electricity increased by 2.3% in January 2010, IVA (VAT) by 2% in July, together with an increase of 4.2% that same month. In fact, the consumer price for electricity as risen by 35.7% since 2008.

Another imminent increase is the price of gas that will rise by an average of 3.9%, depending on the type used and whether it is domestic or industrial, butane or propane, bottled or otherwise, etc. The price of a bombona will go up by about 43 céntimos.