Spain's prime minister, Pedro Sánchez, has issued an assurance that, subject to inflation, consumers will find that at the end of 2021 they will have paid the same for electricity as they did in 2018.
In an interview with El País, the prime minister states that there is a plan to ensure that all citizens with average consumption will have paid the same amount as they did in 2018.
Sánchez distinguishes between the wholesale price of electricity and what is on the electricity bill. "We pay the bill monthly. It doesn't make sense to debate the price on a daily basis, because we do not pay for electricity daily." He says that the government is looking at ways of containing the wholesale price through structural reforms, "with a firm commitment to renewable energy, not only because of climate change issues, but because it is cheaper".
"The electricity future markets are already saying that thanks to renewables, there will be lower prices in Spain in 2022 and 2023 than in France and Germany."
The reduction in IVA (VAT), he adds, "is benefiting 28 million consumers and 2.8 million businesses". "This entails a reduction in state revenue of 1,400 million euros, but lowers the electricity bill by 12%."
Sánchez draws attention to the protection given to "1,100,000 consumers" through, for instance, a ban on cutting off supply. He also highlights the government review of electricity companies' excess profits and the fund for the sustainability of the electricity system, which is currently being processed by Congress. A series of costs will be eliminated from the electricity bill and will be paid for by energy, nuclear and gas companies.
A further measure will be a "vital minimum consumption" as a means of lowering electricity bills.
The price of electricity on the wholesale market has been going through the roof. On Sunday, it fell for the third consecutive day to an average 128.70 euros per megawatt hour. Nevertheless, this was the highest ever price for a Sunday. A week ago, the price was 102.03 euros; twelve months previously it was 43.97 euros per MWh.
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