European Power bills surge Now so unaffordable EU country's are cutting VAT and emission taxes on power bills as well as now paying their citizens to use power with grants/subsidies. "Citizens would unfortunately pay for the ambitions of the EU". says Polish MP Anna Zalewska the truth is now coming out.
Italian minister Robert Cingolani warned on Monday that electricity bills were likely to go up by 40% in the coming quarter, after a 9.9% increase in the last one. "We have to face these things," he said, blaming the increase on the cost of both natural gas and CO2.
Spain's left-wing government has agreed emergency measures to cut spiralling energy bills as electricity prices climb to record levels.It aims to channel €2.6bn (£1.9bn; $3bn) in energy company profits to consumers and slash electricity taxes over the winter months. Energy bills are climbing across Europe as gas prices soar in particular. Greece is promising subsidies to consumers and Italy is also aiming to review electricity bills. But it was Spain that moved first on Tuesday. It has seen some of the highest energy prices in Europe in recent weeks, prompting protests over the summer in a number of cities.
Wholesale electricity prices rose during the summer months and have continued to climb, with reports of a record high of €172.8 per megawatt hour for Wednesday, 12.6% up on Tuesday. Socialist Prime Minister Pedro Sánchez promised Spaniards that under his "shock plan" they would pay no more for their electricity than they did in 2018 plus inflation:Electricity taxes are being cut temporarily from 5.1% to the minimum 0.5% allowed under EU rules. VAT on bills was already reduced in JulyWindfall gains for energy firms will be redirected to consumers and paying for infrastructure until next April Spain will raise funds by selling off a further €900m in carbon emissions permits this year, on top of the existing €1.1bnPrice caps on natural gas mean bills for 10.5m households will go up by around 4.4% instead of an estimated 28%.The plan to target utility firms hit shares in Endesa in particular, which slumped 5.1% on Tuesday
The EU carbon price is currently trading at around €61 per tonne and is also partly behind the surge in Spanish electricity costs. "Only about one fifth of the price increase can be attributed to CO2 prices rising," said Frans Timmermans, the European Commission's vice-president in charge of climate issues. He was addressing the European Parliament during a debate on EU plans to cut emissions by at least 55% by 2030. Polish MP Anna Zalewska warned that citizens would "unfortunately pay for the ambitions of the EU".
