Fernando González Urbaneja | It’s coming up to a year since gas became more expensive on the international markets, which in Spain led to an unbridled rise in the price of electricity for a large number of families and companies. A price hike that had a spectacular and artificial impact on the CPI, with second-round effects on all consumer prices and on the direct costs of production processes. At the…
Fernando González Urbaneja | Several ministers in conversations with journalists have complained about the excessive, extraordinary, abusive… profits of the electricity companies. These adjectives have been heard in Parliament from the mouths of more than a few dubiously documented parliamentarians. It would be desirable for such descriptions to be followed by explanations and figures, because where there are no accounts, stories dominate. To begin with, it would be useful to…
The chairman of Iberdrola, Ignacio Sánchez Galán, yesterday called for a modification of the regulated electricity tariff (PVPC): “We have a differential element which is the design of our regulated tariff, unique in Europe. If a design similar to that of other countries is made, the regulated tariff, which only affects ten percent of the energy consumed in Spain, could fall by between 30% and 40%”, he told the media…
The average price of electricity in the wholesale market will rise this Monday by 16.76% and will mark its most expensive record in history, an average of 442 euros/MWh. This is amid the heat of the rise in the price of natural gas due to the impact of the war in Ukraine. It will thus surpass the previous all-time high of 383.67 euros/MWh, which was reached on 23 December. Furthermore,…
Jorge Mario Uribe Gil via The Conversation | High electricity prices have been at the center of public opinion in the world and particularly in Europe for several months. The huge upward variations that have been recorded since the first half of 2021, and that promise to become more pronounced as the winter progresses, threaten the overall price stability of the region. This rise may lead to situations of energy…
Julia Pastor | Carmen Pinto is the CEO of Nicolás Correa, which manufactures milling machines for half the world. Q: How much of its production stays here in Spain? A: 90% of what is made in the group is exported, 25% to China, another very important part to the European markets, Germany, Italy, the UK and France, the weight of which varies from year to year. And then there is…
Clemente Polo | It is not the ‘markets’ but rather political decisions and a lack of skill in playing the game of market diplomacy that are behind the sharp rise in electricity prices in Spain. Neither EU institutions nor European governments, including Spain’s, have found the right formula to improve the reduction of greenhouse gas emissions without endangering the welfare of several hundred million citizens. Most member states are highly…
Fernando González Urbaneja | The Sánchez government hopes to have avoided the electoral cost of the electricity price hike, as it is confident it has conveyed to public opinion that the final bill to the citizen has not increased. The daily bombardment over several months with the spectacular rise in wholesale prices (which the vast majority do not understand how it affects them) was countered with the commitment from the…
The financial entity calculates the impact that the current energy price crisis will represent for the main European countries at around 107,000 million euros. Spain is not the country where this shock to the domestic consumer will be the greatest since in theUk will amount to 27,700 million euros, while in Italy it will be 24,500 million euros, in Germany 23,000 million euros and in France 22,100 million euros.
Oriol Carreras Baquer & Eduard LLorens i Jimeno (CaixaBank) | The price of electricity, something that would usually barely catch the reader’s attention, has populated the headlines and been a topic of dinner conversations since the middle of the year. This change is not a trivial one: the price of electricity soared beginning in July, and by October it had almost quadrupled the average for 2018-2019. What is the reason for this increase and what impact will it have on the economy? These are the questions that this article attempts to answer.