Business & Economy

Spain’s energy prices continue to hit record highs despite gov’t measures

Madrid, Sep 16 (EFE).- The seemingly unstoppable surge of wholesale energy prices in Spain continued Thursday with a new record of 188.18 euros ($221) per megawatt-hour, a rise of 22% this week, despite government efforts to bring down costs amid public outcry.

The price per MWh rose by 34 euros so far this week and sits at four times its wholesale market value compared to last year.

A package of emergency measures unveiled Tuesday by the Spanish government, a coalition between the center-left Socialist Party and its junior leftist partners Unidas Podemos, aimed to bring consumer costs down by 22% but has so far failed.

The measures included lowering taxes and a consumer price cap that the association of energy companies Aelec, which brings together Spain’s dominant power providers Endesa, Naturgy and Iberdrola, billed as “interventionist.”

The rising price of natural gas and CO2 emissions rights are contributing to a hike in wholesale energy prices across much of Europe.

These wholesale prices, which set the cost of energy for providers, have repercussions on household consumers.

Almost 11 million Spanish consumers fall under a regulated energy tariff directly linked to the wholesale prices each day. These prices also serve as a benchmark for the other 17 million consumers whose energy comes from the free market.EFE


Related Articles

Back to top button