The Cost of Electricity for Spanish Firms
15 Pages Posted: 9 Apr 2021 Last revised: 29 Apr 2021
Date Written: March 9, 2021
This article analyses the cost of electricity for Spanish firms. This cost is compared with other expenditure by Spanish industrial firms on goods and services and with their turnover, distinguishing by firm size and sector. Generally, in the industrial sector, the ratio of electricity expenditure to spending on goods and services increases as firm size diminishes, while the ratio of electricity expenditure to turnover is much higher for micro enterprises than for others. By sector, cement, lime and plaster manufacturing posts the highest ratios, followed by several extractive industries, some intermediate goods-producing basic metal industries and the energy, water and waste group.
Regarding the price of electricity, the article examines, in particular, the importance of the regulated cost component – paid through what are known as access charges – for medium-sized and large electricity consumers by sector. Owing to the design of the access charges, the highest average prices correspond to the lowest consumption bands. The average access charge by supply voltage has been stable since the last tariff review in 2014. In real terms, access charges decreased in the period 2014 to 2019.
Keywords: electricity prices, access charges, sector, firm size
JEL Classification: L00, M21, Q49
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