POVERTY CAUSED BY SPANISH ENERGY SECTOR

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On June the 1st the new electricity tariff in Spain came into force. The slogan to launch this new rate was “Saving will be easier for you” but the data does not correspond to that phrase. The semi-regulated rate PVPC has had a rise of 34.2% in the bill of the average user which will stand at 81.27 euros according to a study made by FACUA-Consumidores en Acción1.

Even with reduced VAT the June invoice is 28.3% higher than the June 2020 receipt2, and very similar to last May’s invoice, still with the 21% VAT, without the new tariffs but with a lower energy price.

The measures approved by the government in recent weeks – temporarily lowered the VAT from 21% to 10%3 and cut 1,000 million in five years in the so-called benefits fallen from the sky – are insufficient and will not protect citizens from the speculation of the large electricity companies that dominate the market. In this sense FACUA and the OCU4 urge the CNMC to have its Competition Chamber analyze the degree of competition in the hydroelectric sector5.

Energy poverty in Spain is a reality for 11% of the population6, who find it difficult to pay their electricity, gas or water bills. This new model not only does not repair this situation but also makes the citizens responsible instead of reforming the model to make it fairer. This affects even more the vulnerable people who will see their debt with the electricity companies increase which do not stop increasing their profits year after year, all in a context of economic crisis.

We must pressure the institutional bodies to approve measures that guarantee a fairer energy model and that guarantee an acceptable price for the bill and protect vulnerable people with a definitive ban on power outages.

1 https://www.facua.org/es/noticia.php?Id=16975
2 https://www.publico.es/economia/subida-luz-recibo-luz-junio-sube-270-respecto-factura-ano-anterior.html
3 https://www.expansion.com/economia/2021/06/21/60d0bf53468aeb6a308b4589.html
4 https://www.publico.es/economia/subida-luz-recibo-luz-junio-sube-270-respecto-factura-ano-anterior.html
5 https://www.facua.org/es/noticia.php?Id=16975
6 https://pobresaenergetica.es/es/quienes-somos/que-es-ape/

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