Facua, one of Spain’s biggest consumer rights platforms, said that Spaniards will see on average a 35% hike on their July electricity bill compared to the same month in 2020. The increase comes at a time when many households are grappling with the economic fallout of the coronavirus pandemic.
Facua’s secretary-general, Rubén Sánchez, said that “the government’s inaction is unacceptable.”
He said the main problem was a rule in the daily auction of power for which the government pays all the megawatts it buys from different power sources at the highest price of all of them, which is usually is electricity generated with gas.
“That promotes speculation and artificially inflated prices,” he said, adding that power utilities were still earning large benefit margins.
Members of Spain’s left-wing ruling coalition blamed the regulations of the European power market.
“We have done what’s in our hands by bringing down the VAT,” said Félix Boñaos, the new minister in charge of the prime minister’s office. “The rest of it are factors that need to be dealt with at the European level.”
Environment Minister Teresa Ribera said that she had written a letter to the EU's executive branch stressing the need to reform the bloc’s electricity market, but warned that the upward trend in prices was likely to continue in the coming months.