The Government has announced that the price of electricity will go up again, making it the fourth time this year; this time by 3.1%.

The increase, which will affect around 20m consumers, works out at about an extra 17 euros a year for a family with a 4.6KW contract with a consumption of 3,500 KWH annually.

Every quarter (three months) the price is revised after an auction between the five main electricity companies: Iberdrola, Endesa, Gas Natural Fenosa, EDP España and Eon. The winning bid was 7.6% more expensive, less than 50% of which is passed on to consumers (3.1%).

The Minister for Industry, Sr. Soria, admits that it is “not good news;” few will disagree.

The fact is that the price of electricity went up 5.4% during 2009, 7.4% during 2010, 1.5% during 2011, 8.6% during 2012 and 3.5% this year – in April it dropped by 6.7% thanks to a renewable energy boom, which cancelled out a good part of the 10.4% total belonging to the four price hikes.

(News: Spain)