Spain To Raise Power Prices By 5%-7% In April-Industry Minister

Spain's government plans to increase power prices by between 5% and 7% at the beginning of April, Industry Minister Jose Manuel Soria said Tuesday in an interview with broadcaster Antena 3.

The rise of what is known as "last recourse" prices--a price ceiling for mostly domestic consumers of electricity--would affect about 20 million households and small companies and will be approved at the government's cabinet meeting Friday, Soria said.

The increase, Soria said, must be implemented to comply with a Supreme Court ruling forcing the government to raise prices when the annual tariff deficit surpasses EUR1.5 billion.

The country's power utilities and the government itself will also shoulder part of the cost of the deficit overrun, he said.

-By Christopher Bjork; Dow Jones Newswires; [phone]; [e-mail]