There are quite a few reasons why the average household monthly bill for electricity appears to keep rising across Europe each year. Suppliers have cited that the price of electricity continues to increase due to the costs of generating the power supply, higher rates for transportation and ongoing expenditure for marketing. However none of this helps the ordinary person trying to keep their cooker hobs hot and the big light on.
It has been reported that utility bills for a typical family home increased by 26% between 2010 and last year, and electricity users have been faced with an annual average rise of 4%.
Spain is reportedly the sixth most expensive country in Europe for electricity and the Spanish government is now taking steps to address the uncontrolled increment in these costs. With concerns that forecasts are predicting electricity bills at the end of 2018 to rise by 3.6% over last year, the administration has brought in certain measures to counter the expected higher prices.
On 5th October Royal Decree-Law 15/2018 on urgent measures for energy transition and consumer protection authorised a six month suspension of the 7% tax on electricity generation that had been approved in 2012. The Spanish government also introduced an exemption in the Special Tax on Hydrocarbons and are now allowing the contracting of this power in multiples of 0.1 to adjust to natural consumption requirements (previously contracting has only been done in terms of 1.1 kilowatts of power). Unfortunately these initiatives are expected to only create savings of approximately 30 euros each year.
The public can also apply to join a new social aid scheme for electricity and heating, which will help to reduce costs for users. However this programme, officially known as the Voluntary Price for Small Consumers (Precio Voluntario del Pequeño Consumidor or PVPC), is likely to only save 20 euros per annum per household, although this figure could increase if your home adopts sensible energy consumption practices.
Any significant savings on electricity usage will be achieved by users themselves, as industry reports claim that introducing efficiency measures can provide a saving of up to 200 euros per year. So despite the government’s helpful stance on the cost of this essential utility, it is clear that the best way to reduce your next electricity bill is to make some practical changes yourself.
Steps you can take to help reduce your electricity consumption:
- replace traditional light bulbs with low-consumption or LED bulbs
- seal doors and windows
- install thermostats and timers in heating appliances
- always purchase household appliances with maximum energy efficiency ratings: A+, A++ or A+++
- make sure you never leave an appliance on standby mode