The surge in electricity prices shows no sign of relenting. Prices reached 436 euros per megawatt hour this week, the highest level since the Iberian exemption began last June. While these figures are milder than those seen in much of Europe, they offer little relief to households and to sectors under pressure, especially commerce and industry, which feel the squeeze as costs climb. Industry bodies voice their concerns, describing the situation as unsustainable and urging rapid action. Gas-related surcharges and the perceived ripple effects of a new gas cap add further burden to bills, and many argue that aid and targeted tax relief are essential to weather the current storm.
The week opened with electricity prices already elevated. Tuesday saw prices at 365 euros per megawatt hour, and Wednesday brought another jump of roughly 20 percent, marking a fresh peak since the Iberian exemption took hold. This marks the fourth time since records began that prices have surged to such levels, with traders watching a nearby high around 545 euros seen earlier this spring.
Compounding the pressure, a new surcharge tied to gas use for electricity generation is affecting invoices. This gas cap, intended to cushion the market, is applied selectively depending on renewal dates and contract terms, and can amount to significant sums for large consumers. Its uneven impact leaves many businesses facing stark cost gaps from one bill to the next.
These dynamics have tangible consequences for productive sectors, starting with retail trade. Carlos Baño, president of the Alicante State Federation of Commerce and SMEs, notes that energy costs are suppressing business activity during a period of rising overheads. He mentions sharper cuts to materials and inputs, as well as reductions in consumption, as firms struggle to maintain margins.
Baño criticizes the gas cap as insufficient, describing it as more cosmetic than curative, given that overall energy spending continues to climb without a corresponding improvement in the economic environment for small and medium enterprises and self-employed workers. He points to increases of up to 30 percent in business energy bills, contributing to a broader 50 percent rise seen in the first half of the year.
Faced with what some call a perfect storm, Facpyme urges the central government and regional authorities to adopt compensatory measures similar to those implemented in other sectors. They argue that such support is crucial for the provincial economy and that resisting the mounting costs is becoming untenable for many small firms.
What about the manufacturing side? Pepe Serna, president of the Valencia Community Textile Entrepreneurs Association, notes that energy-intensive firms, including finishing operations, are at a critical juncture, sometimes resorting to workforce adjustments. Luis Rodriguez, head of the Alicante Metal Entrepreneurs Federation, remarks that while the Iberian exemption helps, it is unfair that consumers bear the cost difference. He highlights cases where some firms face monthly bills increasing by as much as 2,500 euros.
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Salvador Navarro, president of the Valencian Community Business Confederation, points out that manufacturers must absorb extra costs to stay competitive, acknowledging that energy remains cheaper in Spain than in many peers, yet still hits the income statement hard. He believes the solution could come from within the system, especially through tax relief aimed at easing the electricity bill burden.
Electricity providers emphasize that much of the cost structure is regulated. Regarding the gas cap surcharge, they underline that the charge is defined by governing rules and is applied in accordance with those rules. For Iberdrola, company sources indicate that the surcharge does not apply to all invoices; in regulated tariffs, the cost is embedded in energy charges, while in the free market the gas cap appears only on invoices tied to formal agreements after April 26, not on earlier bills. Regardless of the mechanism, the added cost on invoices is a source of complaint from both producers and households alike.