Electricity in Spain is 38% more expensive than the European average. Only Cyprus and Malta are more expensive!

21992-798-534Electricity in Spain is 38% more expensive than the European average. Only Cyprus and Malta are more expensive!

The minister of Energy and Industry, Jose Manuel Soria stated that the hourly cost of the kilowatt (kWh) for the Spanish household was 0,16 euros while the rest of Europe pays an average of 0,12 euros. 

This price on the electical scenario was delivered to the Spanish congress by the Miniser Soria to defend a law to raise an extra 2.200 million euros.

The minister Soria attribusted the high price to “the high cost of regulated activities” which is approximately 40% more expensive that the rest of the main European Economies. “Between 2006 and 2012, the costs have doubled, due, fundamentaly to the rise of all the regulated costs, namely; transport,distribution,feed in tarifs for renewables,the anual cost of the tarif deficit and the extra electical cost of the islands”.

To be more concrete, the cost of the feed in tariffs which include renewables and co-generation rose 700% between 2005 and 2012 against the 44% rise in the transport and distribution and the 72% rise in the electrical cost to provide energy for the islands.

The rise in costs coincides with an “energy consumption that is equal or inferior of that five years ago” which was the original cuases of the tarif deficit, within which, is the erroneos calculation on forecasting future energy consumption. If in 2005 the forecast was a rise of energy demand of 22% for 2012 the final result is a rise of only 2,6%.

Another reason for the current electrical system imbalance, apart from the erroneos forecasting and the rise in cost, the minister indicated, was the “premature bet on immature tecnologies which did not allow for a learning curve” and not transfering to the end consumer “all the cost of the investment.”

 “The result being an overinvestment in the grids, an overcapacity in the generation activity and an over coverage of the demand” he llamented before, pointing out that in the photovoltaic segment Spain installed 76% of the current power between 2008 and 2011.