Thursday, January 19, 2017

Intense cold in Spain drives the electricity prices to record – The Journal of Juarez

Madrid– A wave of cold drove this Thursday, electricity prices in Spain reach record numbers, provoking criticism from consumer groups, who accuse the government of colluding with the companies.

The price of megawatt/hour (MWh) reached by the times, the 95 euros on Thursday, a record since the end of 2013 (€103). Since then, they had spent 75 euros.

however, the price should increase over the Friday, according to forecasts of the regulator of the energy market in Spain and Portugal (Omie).

The Spanish minister of Energy, Alvaro Nadal, attributed the increase to the weather conditions, which prevent Spain to fully utilize renewable energy sources to compensate for the strong demand: little wind for the wind, little water for the hydropower station.

According to the minister, the electricity bill could exceed 100 euros per year, on average, for consumers, some of the most expensive: between the third or fifth place in the European Union, depending on the method of calculation.

“There is a conspiracy of the power companies with the government,” said July Field, coordinator of the Platform for a New Energy Model, which advocates for renewable energy.

According to the association of consumers Facua, the electricity bill of the average Spanish users grew by more than 40 per cent between April and January, said his spokesman, Ruben Sanchez, accusing the companies of manipulating prices.”

In 2015, Iberdrola was sanctioned with a fine of 25 million euros by the Spanish authority on competition (CNMC), by artificially inflating prices.

The system of fixation of prices between the five major Spanish operators (Endesa, Iberdrola, Gas Natural, EDP and Viesgo), criticized for its opacity, is based on an auction model between suppliers and distributors.

The minister Nadal ordered at the end of December, an investigation on the variations of prices in the markets of electricity and gas.

the price of energy has been the subject of controversy in Spain, where the left denounces the “energy poverty”. According to the National Institute of Statistics, 10.6 percent of spaniards could not warm up properly in 2015.

In November, the death of an elderly woman in an apartment fire by a candle that was used to lack of electricity, generated a controversy and the conservative government pledged to implement measures to prevent outages due to non-payment to the most vulnerable.

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