Experts warn climate measures will raise household costs and say ‘compensation’ will be needed
Electricity prices in Spain hit a new all-time high on Monday after steady increases throughout the year
Experts are warning that environmental policy from the European Commission will likely see further increases in utility bills for households, after the price of electricity in Spain hit a new all-time high on Monday, and could surpass that price again on Tuesday.
Separate to the increasing electricity prices, the European Commission are focussing their attention on households in their attempts to see a 55% reduction in CO2 emissions by 2030 compared to 1990, after previously centring their efforts on industries.
With the proposal to create an emissions market for housing and road transport from 2026, like the one that already exists for industry, experts warn that it will be necessary to "compensate" for the rises in household bills and transport.
In an interview with the Catalan News Agency, Carbon Market Watch policy director Sam Van den Plas warns that the measure could have a "negative social impact," and the head of sustainability at the European Consumer Organization, Dimitri Vergne, argues that "compensation" is needed for the population to meet the costs of the transition.
For Vergne, it is "worrying" that the price of mobility and heating and cooling systems in homes could increase "without giving cleaner alternatives".
Electricity prices hit new high
The price of electricity hit a new all-time high on Monday and could yet reach another new peak on Tuesday.
Monday’s figure of €106.74 per MWh surpassed the previous high of €106.57 MWh seen on July 21 of this year, and is expected to climb to €111.88 per MWh on Tuesday.
Experts have already explained that we can expect to see high prices until the end of the year.
The current spike in temperatures, limited use of renewables, increase in the toll for polluting energy sources and the low level of gas reserves in Europe are some of the reasons for which prices are rising.
The fact that combined cycle power plants and ones that consume coal are covering the heightened demand is also to blame for pricier bills.
New tariffs came into force at the beginning of June, segregating the price of electricity by time, and campaigners believe that this could add to the rising bills.