Consumer group warns electricity companies cannot raise prices hiding behind rising costs after Spain's national power blackout

Spanish consumers' organisation Facua-Consumidores en Acción has warned that electricity companies in Spain cannot raise their free market rates with the excuse that the big blackout has led to an increase in costs until the end of the users' annual contract. In a statement on 16 June, the users' organisation said that some companies have already begun to send notices to their customers, stating their intention to apply surcharges to cover the "increase in the technical costs of the system" since Red Eléctrica has opted to operate with more backup power generation to avoid situations similar to the one that occurred on 28 April.

Facua said that electricity providers, "cannot raise the price of the rate agreed upon in the contract with their customers until a year has passed since its signing". The organisation stated that the adjustment services - among which this increase would be included - are not part of the regulated part of the electricity bill, so providers cannot use their cost increase to justify the price hike.

"Normally, electricity supply contracts provide for the modification of the tariff if there are changes in the prices of the regulated part - tolls and charges - but not in the price of energy, where the adjustment services would be included," the statement points out. Facua argues that article 1.256 of the Civil Code states that "the validity and fulfilment of contracts cannot be left to the discretion of one of the contracting parties", while article 1.258 states that "contracts are perfected by mere consent, and from then on are binding, not only to the fulfilment of what has been expressly agreed, but also to all the consequences that, according to their nature, are in accordance with good faith, usage and the law".

On the other hand, Article 65 of Royal Legislative Decree 1/2007 establishes that "contracts with consumers and users shall be integrated, for the benefit of the consumer, in accordance with the principle of objective good faith, also in cases of omission of relevant pre-contractual information".

Facua added that, as exceptions, there is the possibility that one of the clauses in the contract, at the time of signing, would have stated that the supplier is authorised to increase the energy price part of the tariff in situations such as those that occurred on 28 April. It could also happen that the terms and conditions state that the supplier can modify the conditions by giving the consumer a specific period of notice of such a change. However, the organisation said that the nature of such a clause and whether it is abusive should be assessed in every specific case.