Electricity prices in Spain are skyrocketing while Portugal is barely budging. Spain and Portugal share the same wholesale market.
In Spain, electricity bills have increased 22 times more than in Portugal. The electricity portion of the Spanish CPI increased by 44%. Portugal recorded only a 2.3 percent increase.
Spanish consumers have been hit by higher electricity bills than in Portugal over the past three and a half years.
Spaniards and expatriates in Spain recently despaired of unstoppable increases in electricity prices. The Portuguese saw their electricity bills barely budge. This is surprising since Spain and Portugal share the same wholesale market. This means they have the same pool prices.
Using data from the CPI, last September in Spain electricity was shockingly 45% more expensive than it was a year earlier. In Portugal, however, the difference was only 2.3 percent. When you remove the effect of the coronavirus pandemic and use the 2019 data for the benchmarks in Spain, their bills increased by 43.8%. In Portugal, bills only increased by 1%.
Spain’s electricity bills have risen much more than other European economies. The electricity CPI for Italy rose just over 15% in September compared to 2020. France and Germany reached around 2%.
As reported by 20 minutes: âIn Portugal, the market regulator (ERSE) fixes at the end of the year the prices and tariffs which will be in force the following year, in Spain the most frequent service modality is the tariff. dynamic.
âThis means that while a Portuguese household will pay a fixed amount for electricity throughout the year – unless the government steps in to change the benchmark price – what the average consumer pays in Spain is usually directly linked to the results of the daily wholesale market. “
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