Consumers' Association criticizes electricity price hike.

By: ThinkSpain, Wednesday, September 22, 2010

The Spanish Consumers' Association (CECU) has criticized the latest

increase in electricity prices, describing it as "unacceptable" in the
"current economic climate" and has demanded that the Industry Minister
open "serious discussions" to reach a more reasonable agreement.

CECU reminded the government that the "possible" 3% increase

announced yesterday "would be added to the January price increase and
the VAT increase in July as well as the additional cost that all consumers
have had to pay to install the obligatory ICP power control switch in their
homes".

"With this latest increase," said the CECU statement, "electricity prices will
once again rise far above the current IPC rate", adding that the problem
"is even greater" if you take into account that salaries only rose an
average of 0.4% in the second quarter of the year, whereas the IPC
(consumer price index) rose 1.6%.

"And even greater still," continued the statement, "if you consider the high
level of unemployment and the fact that pensions have been frozen".

"Whilst consumers' incomes do not increase even at a quarter of the rate

of the IPC," the statement went on, "basic utilities like electricity go up
year after year at a far greater rate than the price indicator, continually
decreasing families' purchasing power."

The consumers' association said it was "once again" asking the Industry
Minister to engage in "serious and committed" dialogue" with the
electricity sector to reach an agreement over the tariff deficit, in order to
avoid "families seeing their purchasing power further reduced in a time of
deep recession and high employment."