ARCHIVED - Electricity bills in Spain likely to remain high for the rest of 2021

Spanish government Minister warns that little respite is expected for household consumers

Teresa Ribera, the Minister for Ecological Transition in the Spanish government, recognized on Tuesday that electricity bills are likely to remain very high for most of the rest of 2021 after reaching record levels during June.

The steady increase in household electricity bills since April is attributable mainly to the rising market price of gas and CO2 taxes, and Sra Ribera stated in Congress that these circumstances will probably persist for some months. Other factors contributing to the rising cost of electricity to consumers include the new pricing structure introduced on 1^st June and increased demand as air conditioning units throughout the country are switched on during the summer.

A little over a week ago the government announced a reduction in the VAT rate on electricity from 21 per cent to 10 per cent, but the Minister stressed again on Tuesday that this move can only be temporary – as is the case of the suspension of a 7 per cent tax paid by electricity companies on generation activity. Specifically, as soon as the pool price of electricity drops to 45 euros per megawatt hour the measures will be lifted, although during June the figure averaged out at 83.30 euros.

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