Electricity bill refund for 'overpayment'
Monday, March 31, 2014 @ 11:30 PM
THE average household will get a refund of 34 euros in their next bill for overpayment during the first quarter of this year as a result of the market price of energy being lower than the rate fixed by the central government in December.
This is based upon a consumption of 1.5 megawatts per hour (MWh) over three months, which would work out at 33.60 euros overpaid.
The cost of energy ended the first quarter of 2014 with an average price of 26.09 euros per MWh – 33.62 euros in January, 17.12 euros in February and 26.67 euros in March – considerably lower than the government's fixed price of 48.48 euros per MWh for the whole three-month period.
From now on, the electricity charging system will differ, with householders allowed to switch suppliers – although energy distribution in Spain is State-owned, various distributors act as 'agents' and can bring the price down in some cases.
Where a homeowner switches, they must be given a forecast for the whole year, with fixed rates per month, but if they decide to break their contract and return to the main supplier, Iberdrola, they will have to pay a penalty charge of a maximum of five per cent of the cost of energy pending supply.
Read more at thinkSPAIN.com