The war in Ukraine will mean a rise in domestic electricity and gas bills of between 79 and 222 euros per month, according to an estimate by the Organización de Consumidores y Usuarios. The extra cost is in addition to the increase already being suffered as a result of the energy crisis. The invasion has pushed up the cost of gas and oil and pushed petrol and diesel to record highs. The price of Brent Crude rose above 119 dollars yesterday.
OCU warns that the economy of Spanish households will suffer as a result of the war due to the instability in the energy markets. “This will be quickly felt in consumers’ electricity and gas bills, which have already reached record prices in recent months,” warns the consumer organization. The average electricity bill for February was 110 euros, twice as much as a year ago. The extra cost is no higher thanks to the government’s tax cut.
OCU experts have analyzed the extra cost of the war with three scenarios: The first considers that the value remains at current levels, which are already very high (200 euros per megawatt hour -MWh- of light in the wholesale market and 77 euros MWh of gas); the second scenario foresees electricity prices of 240 euros in the wholesale market and 111 for gas; the last considers that they will reach values previously unheard of.
Based on these calculations, the analysts predict that the cost overruns on electricity and gas bills could be between 79 and 222 euros per month, an increase of 41 % in the most positive scenario and 109 % in the most negative scenario. In the worst case scenario, the bill could double, according to OCU.
Electricity and gas bill
The average electricity bill during 2021 already had a record price of 79 euros due to the sharp increase in electricity on the wholesale market during the second half of the year. But the Ukraine conflict is going to worsen these figures: Spanish households could pay 112 euros per month with the same average prices as now, or face an average monthly bill of 127 euros if December’s average prices are reached.
Electricity and gas bills will soar due to the war in Ukraine. SARA LEDO | EDUARDO PARRA
In a scenario of unknown and skyrocking monthly prices, the bill would rise to 165 euros per month, which means an excess cost of 86 euros. If prices remain as they are now, gas bills would be 46 euros more expensive each month, an increase of 77% over last year’s average of 60 euros. If prices were to remain at last December’s levels, the average bill would increase by 77 euros, leaving it at 137 euros per month. In the worst case scenario, the average cost would rise to 196 euros per month, i.e. 136 euros increase compared to the average bill in 2021.
The average price of a litre of petrol this week stood at 1.608 euros and diesel has climbed to 1.496 euros.
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