The year is ending with yet another price hike in the cost of electricity, making December the 4th consecutive month with a price increase.
According to the consumer association, Facua, this increase is the result of a lack of rainfall and wind, which has caused a drop in power generation in the renewable energy sector. Going by last night, you might question that…
Whatever the cause, domestic electricity bills for December will be ten euros more expensive than the October one, on average. Furthermore, of the 12 months of this year, seven of them have contained a price increase, three have seen a price drop and two where the price has remained relatively the same.
The fact is that since the crisis began, electricity has gone up a staggering 84% in Spain.
As far as Facua is concerned, consumers are at the mercy of an oligopoly which allows the energy giants to act as they please whilst the government effectively does nothing to prevent it. The inactivity of the Government is directly related to the fact that ex-PMs and Ministers end up on the advisory boards of energy companies – the notorious rotating doors, as this mutually-beneficial arrangement is called.
No Minister for Industry is going to rock the boat knowing that when he leaves the government he will have a golden retirement on the advisory board of Fenosa, Endesa or Natural Gas, as is the case of ex-PM’s Aznar and Felipe González, for instance.
Therefore, calls for the Government to lower the IVA rate on domestic energy bills or for the Government to directly control the prices, always falls on deaf ears.