Spanish fuse box

Electricity prices in Spain are set to rise AGAIN! The cabinet gave the green light to energy changes to address the tariff deficit, which in simple terms means that our electricity bills will go up by 3.2% - probably starting from August.

Between 2003 and 2011 electricity prices have increased by a staggering 63% in Spain making it one of the most expensive countries within the EU. The Minister of Energy Jose Manuel Soria explained that if the Government did not take this action then the annual deficit would be 10.5 million euros requiring an increase of 42% over the next 2 years! I really cannot understand how they are so in debt, bearing in mind that electricity is so expensive here - it smacks of mis-management and corruption somewhere.

Typical wood burner found in many homes in Spain

Utilities here do not have the advantage of reduced IVA rates like they do in the UK - meaning electricity, gas and water are all subject to the full 21% rate. Wood burners are very common here and I´d say that the majority of Spanish have them in their homes. During the hot Summer months you will often see locals scouring the countryside for wood and fallen trees to stock up for the cold Winter months ahead.

I wonder whether this means that prices will go up for holiday makers - restaurants have to keep the air-con on during opening hours and hotels cannot really regulate how long people leave the air-con on in their rooms during the hot weather.

Big draw to Benidorm....

But I suppose that other things here make up for the high fuel prices - for one we have the sun and lets face it, most ex-pat that have relocated here do so for that very reason. The relaxed way of life and weather are the two top reasons, followed closely by cheap booze (true I´m afraid), no daft political correctness and flooding of benefit scroungers that wash up weekly in the UK. Although Spain are also in the EU they are no pushovers when it comes to handouts - unlike the UK who always quote EU legislation etc... it certainly doesn´t work like that in Spain. If you don´t pay into the system you get  nowt out - which is how it should be.