Tuesday, May 27, 2008

Higher bills

It seems that the cost of electricity is set to rise by at least 11.3% from the 1st July.

Some of the existing tariffs will also disappear. For example, 23,000 users of the cheap night time rate will loose out because it is due to be axed. The cheap rate for agricultural irrigation is also set to disappear.

Previously prices were controlled by the Government. Now, with the sprit of free competition, which was introduced to keep prices down, electricity companies will be allowed to change prices without control. Domestic prices are still controlled by the Government but only until 1st January 2009.

Since demand is greater than supply and since Ibderola are the only suppliers in this area, we have very little choice in the matter. Although in theory we could now change suppliers, in practice that would be very difficult and costly.

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