Spain to lift power prices 5% to 7% in April: aide

Spain to lift power prices 5% to 7% in April: aide
27 March 2012, by Christopher Bjork - Madrid (MarketWatch)
http://www.marketwatch.com/story/spain-to-lift-power-prices-5-to-7-in-april-aide-2012-03-27

Spain's government plans to increase power prices by between 5% and 7% at the beginning of April, Industry Minister Jose Manuel Soria said Tuesday in an interview with broadcaster Antena 3.

The rise of what is known as "last recourse" prices--a price ceiling for mostly domestic consumers of electricity--would affect about 20 million households and small companies and will be approved at the government's cabinet meeting Friday, Soria said.

The increase, Soria said, must be implemented to comply with a Supreme Court ruling forcing the government to raise prices when the annual tariff deficit surpasses €1.5 billion.

The country's power utilities and the government itself will also shoulder part of the cost of the deficit overrun, he said.