Today a new private albergue opened today in Santiago de Compostela, and the good news is that this is very well located, only 5 minutes from the cathedral. The two partners that have started this new albergue have been working on getting it ready for several years, and today they had their first day open.
Today El Correo Gallego also had an article on this new business, read it here (Spanish).
Prices at this new albergue start at €12,- per bed, with a few euros extra for a towel, a locker and so on.There are one room for two, and several other rooms, some with 6 beds and others with 8. They also have coin operated washer and dryer and coin operated internet access.
I have visited this albergue and if you do not mind sleeping in the same rooms with others, this place is clean, new and run by good people. Absolutely to be recommended!