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SPAIN-POWER/
RTX16OQH
December 19, 2013
Luis Guerrero, 44, warms himself by a chimney fire after lighting it in his home on a cold winter's day...
RONDA, Spain
Guerrero warms himself by a chimney fire after lighting it in his home on a cold winter's day in Ronda...
Luis Guerrero, 44, warms himself by a chimney fire after lighting it in his home on a cold winter's day in Ronda, near Malaga, southern Spain December 19, 2013. Spanish electricity bills are set to rise by at least 10.5 percent in January, hitting cash-strapped consumers hard and casting more doubt on whether a wide-ranging energy reform passed in July will be enough to fix a distorted power market.
Spain is trying to balance a 30 billion euro ($41 billion) electricity tariff deficit created by years of a policy that kept prices below the sum of costs ranging from generation and transmission to renewable subsidies and capacity payments.
The reforms, which include subsidy cuts and tax hikes, were meant to spread the burden of curbing the tariff deficit among consumers, companies and the state, which had pledged 3.6 billion euros in funds to help close the gap. REUTERS/Jon Nazca (SPAIN - Tags: SOCIETY POLITICS ENERGY BUSINESS)
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