Gas and electric prices
We know that these are going up very fast.
Spain gets most of its gas from Algeria and Nigeria, but of course international prices are affecting us.
As for the electric charge, this is an interesting issue.
It is a figure based on the cost of production in the EU, which is heavily biased towards the cost of gas, which is the main source of power for electricity production in the EU.
Of course things have changed, and for Spain (and Portugal) the cost of gas is not a fair measure of the cost of electricity production.
In Spain production is heavily biased to solar, wind and hydro.
So in Spain the electricity suppliers have been making excess profits and the customers have been paying too much.
Negotiations have been underway between EU countries for some time.
It now seems certain that Spain and Portugal will be able soon to change the situation.
The plan seems to be a set figure on the factor which is used to calculate the electricity price.
According to a statement by the Spanish Minister today they expect that the price of electricity to fall significantly. There will probably be a shortfall for the electricity companies, which they will have to absorb most of, with a possibility of a short term support from the Government to be paid back over time via surcharge on future electricity bills, but according to the Minister this will still result in a total reduction in cost to the clients.
We wait for confirmation.
