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Date Published: 15/10/2021

ARCHIVED - Rising electricity costs fuel fears of a difficult winter in Spain

ARCHIVED ARTICLE

The average electricity bill in Spain has increased by 44% in just one year

<span style='color:#780948'>ARCHIVED</span> - Rising electricity costs fuel fears of a difficult winter in Spain

As winter creeps ever closer, homeowners in Spain face a season of extortionate electric and gas bills, compounded by the fact that Brussels has refused to step in, stating on Wednesday October 13 that they believe member states are “better equipped” to find their own solutions to the rising energy costs.

The EU’s stance threatens President Sanchez’s promise to consumers that electricity bills this winter will cost the same as in 2018, an assurance he will possibly have to break since September’s prices were already 19% higher than the previous December.

However, the Government feels there might be some wiggle room, as the Royal Decree approved last month should lead to savings of about 30% on the average bill.

The most recent data from the National Institute of Statistics show that electricity increased 10.9% in September compared to August, which is a 44% rise on last year.

And it’s not just electricity that consumers have to worry about, as studies show that the cost of living has been steadily increasing in Spain for seven consecutive months, with inflation recently reaching a 13-year high. In addition, the cost of diesel has shot up by 23% while the price of gasoline has risen 22.1% in 12 months.

The Consumer Price Index (CPI) shows that the rebound of the travel industry has also led to inflated costs, with hotels hiking their prices up by 10.8% compared to 2020 while summer clothes and footwear cost 5.3% more this year. The price of childrens' toys is also expected to rise this Christmas, as manufacturers experience a 40% increase in production costs.

So far this year, the price of electricity has risen every month except for February; however, the increased cost is more noticeable due to its comparison with 2020, the year with the cheapest electricity. This distortion of the figures leads many experts, including the central banks, to predict that inflationary pressure will soon begin to subside.

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