According to an announcement from Spain’s minister for Industry, Energy and Tourism, José Manuel Soria, last week, the price of electricity will ‘most probably’ reduce by more than 3.7% this year.

This figure, he says, is the same amount by which the cost of electricity fell last year. “In 2013, the price of electricity in Spain dropped by 3.7%, and by the end of this year, it will probably have dropped by more than this amount,” said the minister in an interview with radio station Onda Cero.

Despite this, says Soria, that doesn’t detract from the fact that some days the price of electricity rises while others in falls. In fact, during the third quarter of last year, there were weeks in which electricity costs rose and others when prices fell.

Nevertheless, the minister is adamant that if prices behave in the way in which they have all throughout the year, electricity costs will definitely be lower than they were 12 months ago.

While we may be happy that electricity prices are coming down (it’s about time they did), we mustn’t forget that electricity in Spain has gone up drastically in the last ten years.

Actually, since 2002 the price of our energy has gone up by 104%. This is in contrast to the 4.1% increase in Germany since 2007, or the 18.4% rise in energy prices in France.

In fact, at the beginning of 2014, Spain was one of the top three countries within the EU for expensive energy prices, only behind Cyprus and Ireland and just above Lithuania.

In Spain, half of the money we pay in our electricity bills as a consumer goes towards taxes, subsidies, towards the National Energy Commission’s budget or to pay off Spain’s energy deficit. Despite all these additional costs, energy prices have still increased by 75% since 2007.

The main reason for the high prices in Spain is due to the lack of competition. Although the market was opened up in 2003, it’s still the same large companies that are operating and controlling the situation and the prices we have to pay.

Source: www.onthepulse.es