Spain – Cheap electricity at what price……..?

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This topic contains 4 replies, has 5 voices, and was last updated by Profile photo of Anonymous Anonymous 6 years ago.

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  • #55913
    Profile photo of Anonymous
    Anonymous
    Participant

    I was quite amazed when I read the following article which details that Spanish electric prices are subsidised for all consumers and these electric companies are now wanting their money from the government.

    http://www.bloomberg.com/news/2010-10-15/spain-to-sell-eu1-billion-of-power-deficit-bonds-this-month-people-say.html

    Ian

  • #101206
    Profile photo of petej
    petej
    Participant

    Seams odd, electric in Spain is more expensive than the UK to start with and as far as I know the UK government don’t subsidise electric prices

  • #101211
    Profile photo of Sonsoles
    Sonsoles
    Participant

    it is probably a subsidy to pay for the renewable electricity in spain. Wind power has a high capital cost. The UK has very a very low proportion of renewable electricity.
    Sonsoles

  • #101212
    Profile photo of katy
    katy
    Spectator

    Most of the capital cost probably came from the EU.

  • #101460
    Profile photo of Anonymous
    Anonymous
    Participant

    The spanish gov. has always set the price of electricity , & for many years at below the cost of generating it or buying it in. This is why the price has increased substantilly in recent years. They also set the rate for the 12kg gas cylinders . I read 3 or 4 years ago that the gov. owed the electric co’s. 16 billion euros.

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