Power up 85% in 15 years

Sánchez’s reduction of part of the taxes supposes a saving of only a few euros; consumers, industry and social agencies demand full sector reform

Our electricity bill is now 85% more expensive than it was 15 years ago, according to estimates from the consumer organisation Facua, from €43 in 2003 to more than €80 in 2018 for an average family. Facua also estimates that this year it will increase by 24%.

In order to try to lighten the pressure on families, the Minister for Energy Transition, Teresa Ribera, this week announced the reduction of the 7% tax on generation included in all bills, to “practically zero”. For domestic users, however, the cuts in the tax will mean savings of between 2.5% and 4% in the monthly invoice, a savings of between €2 and €3, something that some organisations and entities have considered to be “ridiculous”. In the case of large industry, the rebate will be between 5% and 5.5%. In addition, the government has decided to lower that particular tax to “near-zero”, not eliminating it so it could be raised at any time.

Ana Garica, of the College of Economists of Catalonia (CEC), says “the decision is a social proposal that does not solve the problem.” Garcia considers that the real problem is that with the crisis, there has been no redistribution of income “and such a small change will not solve anything.”

The College believes, along with other agencies, that what is needed is a structural reform of the energy sector to combine the costs of renewable energies with the conventional.” As well, a true technological transition must be instigated and Garcia advocates energy sovereignty for the individual citizen adding “the best outcome is for consumers to be able to produce their own energy. It is the only way the market will change.”

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