The price of the regulated electricity rate will rise again in October. That’s 3% more on an average bill, the Energy Services Regulatory Authority announced. Electricity had fallen 2.6% in July, after the measures adopted by the Government and the regulator to curb the impact of the price increase in the wholesale markets.
In June, the Iberian price brake mechanism came into force for this market, but it was not enough to prevent a new extraordinary review of rates that occurs every quarter when there are deviations in the price of energy. As of October, the energy rate will rise by 5 euros per MW/hour for almost a million consumers in the regulated market (about 927 thousand families in July), which represents an increase of 1.05 euros for an average monthly bill 38.22 euros (two people) and 2.86 euros on a monthly bill of 94.97 euros for a couple with two children.
This is the third extraordinary review of regulated rates in a year of great tension in the energy markets. The first took place in April and represented an average increase of 3%, corresponding to 5 euros per MW/hour. In July there was a downward revision of this price of 2.6%, thanks to a reduction in access tariffs that was achieved at the cost of extraordinary transfers from the Environmental Fund and the anticipation of the surplus with renewable production that is receiving a much lower price than the market.
Despite the drop in the regulated tariff in July, the price of electricity for most residential consumers in the free market has been increasing, according to the National Institute of Statistics. According to the INE, between February and August the electricity paid by the family increased by 28% and even in the last year it is the subgroup that contributed the most to the rise in inflation.
Electricity rises 28% since February and pushes inflation more than fuels
ERSE justifies this review with the electricity system regulations, which provide for a quarterly adjustment whenever there is a deviation of more than 10 euros per MW hour in relation to the initially estimated acquisition cost. “This situation occurs at a time when energy markets are particularly affected by the ongoing conflict between Ukraine and Russia” and the respective impacts on the price of natural gas.
Source: Observadora
