Spain approves emergency plan to deal with rising energy prices | Photo credit: Shutterstock
MADRID, March 29 (Reuters) – Spain will cut connection fees and tax excess profits made on newly signed electricity supply contracts, the government announced on Tuesday as part of a contingency plan to help businesses and households cope with soaring energy prices.
The Spanish government on Tuesday approved the 16 billion euro plan of soft loans and direct aid, which also includes measures to limit rising rents and boost employment for young people and women.
Madrid is thus trying to appease the social discontent triggered by the rise in energy prices, amplified by the conflict between Ukraine and Russia.
When presenting this package of measures, which should come into force on April 1 and last three months, Energy Minister Teresa Ribera said that Spain would spend around 2.5 billion euros to reduce interconnection charges for energy-intensive industries.
From 2023, the government will encourage power companies to sell power to companies bilaterally and bypass the wholesale market, in a bid to cut costs, according to the energy minister.
About six billion euros will be disbursed in the form of direct aid and tax reductions, while the remaining 10 billion euros are loans at subsidized rates.
Much of this plan still needs to be approved by the European Commission. (Reportage Inti Landauro, Belén Carreño and Jesús Aguado, French version Anait Miridzhanian, edited by Matthieu Protard)