When asked about the cost of living in Spain, most people will reply that in most respects it is cheaper than they are used to in their home country. The cost of food, drinks, even taxes, can be significantly lower. However, one cost that seems to have escalated in recent years is the cost of electricity.
Since 2010, electricity bills in Spain have increased by about 20%. For the average household trying to keep warm in the winter and cool in the summer this can make a real difference to the cost of living. The bad news is, that for some people, new legislation will mean it will rise even more.
From January 2013, consumers who have contracted between 3 and 10 kilowatts of power will have to pay a surcharge of between 1 and 8% if they use more than an average amount of electricity. Households will be designated an average and if they use more than 10% of this they will have to pay more.
This tightening up is for two reasons. Firstly, as consumer prices were set lower than the cost required to produce the energy, Spain ended up with a huge electricity tariff deficit. Secondly, the government suggest that the increased charges for those using ‘too much’ will encourage more responsible consumer use.
We’ll leave it to you to decide which of these reasons has been the biggest driver for the new legislation.