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

[Anonymous]

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

[petej]

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

[Sonsoles]

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

[katy]

Most of the capital cost probably came from the EU.

[Anonymous]

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.

[Author]

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