New minister says he won't hike electricity rates
Energy companies Endesa and Iberdrola have already contested previous industry chief's decision to freeze prices
Incoming Industry Minister José Manuel Soria on Friday said he has no plans to raise electricity rates in January. However, and despite an agreement between the Popular Party and the Socialists to keep prices stable, pressure is growing to increase the rates.
The Supreme Court recently questioned the previous minister's October decision to freeze prices, ruling in favor of the utilities Endesa and Iberdrola, which opposed the move.
Although Soria admitted that the tariff deficit - the difference between what companies get paid for delivering electricity and what they pay for it at auctions - is a serious concern (it is now over 22 billion euros), he pledged to seek solutions that do not place the burden on consumers alone. The sector claims rates must rise 30 percent in January to contain this debt.
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