Cost of electricity

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1121

Altea
February 15, 2017

Hi, I was wondering if you could shed any light on the rising cost of electricity here. We live in Altea and the cost has spiralled in the last 12 months. On the back of our bills from Iberdrola on the bill detail all of the costs have stayed constant with the exception of “Energy Cost”. In January 2016 this was 0.0490220 €/kW. Our latest bill for January 2017 shows this cost as 0.103054 €/kW, a rise of 110%. This steady rise throughout 2016 has gone largely unnoticed as many do not closely examine their bills and just pay them. How can Iberdrola warrant such a steep rise?

Kind regards,
Kevin

Dear Kevin
As we have reported in Costa Blanca News over the past few months, the price of electricity in Spain has increased considerably over the past year. Under new market regulations, electricity prices vary on a daily and even hourly basis depending on the demand. The peak price was registered during the severe storms, snow and cold weather during the last week in January (also reported in CBNews).
The government has incentivized the use of gas and other energy supplies and has promised to look into the increase, however, they are the result of a free market and cannot be ‘officially’ tampered with.
Under the new regulations you are allowed to swap your supplier (does not have to be Iberdola), but financial experts warn customer to carefully check all offers you get – especially those promising very low rates.
Another option is to change your contract with Iberdrola to what used to be called night time rate, now called “tarifa discriminatoria” the prices here are set and do not fluctuate.
There is a cheaper rate between 22.00 and midday in autumn and winter, and from 23.00 and 13.00 during spring and summer months. This rates is currently 0.164777€/kW out of saving hours. And 0.070644€/kW during saving hours. The ‘tarifa discriminatoria’ is not subject to daily/hourly price fluctuations.
CBN

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