The increase in electricity prices will have an estimated cost of 3.9 million euros this year
The increase in electricity prices will cost the Junta de Extremadura 3.9 million euros in 2022. The framework contract will be reviewed in the coming days with an estimated increase of 60% compared to last year.
The regional administration has not noticed the increase in electricity costs so far, since since April 2021 it has had a framework agreement that fixed the prices that existed at that time for a year. But now it’s time to review that contract, which will affect that rise in the bill.
The general director of Patrimony and Centralized Contracting of the Board, Juan Pedro León, affirmed last January in an appearance in the Assembly of Extremadura that the increase would not have too many effects for the regional coffers, since by April it was expected that the measures announced by the Government would allow the rates to be lowered. However, “since the war in Ukraine, it is true that prices have skyrocketed disproportionately.” To this is added that the review is carried out with the figures for March, which is when the largest increases occurred. In this way, “what was going to be a contained increase, we now understand that it is going to be much more pronounced.”
As indicated, it is estimated that the increase will be 60% compared to 2021, when 6.54 million were paid. That means 3.9 million euros.
Regarding fuel costs, Juan Pedro León has indicated that last year spending grew by 1.2 million compared to 2020, but it was mainly due to the return to normality and the end of mobility restrictions.
So far in 2022, there has already been an increase in costs of 421,000 euros, so if this trend continues, the rise for the entire year would be more than 1.2 million. But he pointed out that the measures in place, such as the 20 cent per liter fuel bonus, are expected to reduce the impact on the bill.
In any case, for León this increase would be “significant but not unaffordable.” As he has stressed, if the current price is maintained for the entire year, the cost would represent 0.017% of the regional budget, which in 2022 reaches 7,000 million euros. As for electricity, the increase of 3.9 million represents 0.056% of the regional accounts, distributed among all the ministries.
The general director of Patrimony and Centralized Contracting has responded in this way to a question posed by Joaquín Macías, deputy of United for Extremadura, who has emphasized the effect that the rise in prices will have on families and activity. Likewise, he has requested measures such as promoting self-consumption, both in private buildings and in the regional administration, since “prices are going to continue to rise.”
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.