"The Spanish government really hasn’t helped by introducing its new tariffs..."

"The Spanish government really hasn’t helped by introducing its new tariffs..." | MDB files

Andrew EdePalma14/08/2021 09:44
TW
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According to one expert source, between 20 and 30 per cent of a hotel’s costs can be spending on energy. Adding to these costs will therefore bite further into bottom lines and hinder recovery.

There will doubtless be limited sympathy for hotels. Their owners have got deep pockets, have they not? Some, yes, but not all. Meanwhile, there are all the other businesses - bars, restaurants, shops, factories - as well as consumers. Unless there are fixed prices for bills, everyone’s in the same boat. With the heat like it is, and on top of everything else that has been thrown at businesses (plus consumers), record electricity prices are the last thing that’s wanted.

The Spanish government really hasn’t helped by introducing its new tariffs for periods during the day and the night. While there will be those running appliances in the middle of the night, most will not be. Electricity is used when it’s needed, and especially so when the weather is like it is right now.

Cutting VAT for some users has perhaps been an admission that the new tariffs are a bit dopey, but while these tariffs are all part of a much-needed energy transition, do they point to much more costly electricity in future?

Aware of the possibility, the government is now looking at further regulation of tariffs and at intervening in the market directly through a newly created public company. This sounds like a welcome move, and at the same time, could the government please look at simplifying bills.