The government is postponing Brussels and now plans to maintain the anti-crisis shield in 2024 if necessary

“The current and foreseeable conditions for electricity supply and prices in the EU do not indicate that it is necessary or advisable to extend the measures,” the European Commission sent this week to the European Parliament in a report analyzing the situation. In line with the messages launched by Brussels in recent weeks.

After historic highs in electricity and gas prices last year at the worst of the energy crisis, strengthened by the impact of Russia’s invasion of Ukraine, energy markets are now accumulating a few months of moderation, and analysts and investors predict new price increases.

Faced with preliminary requests from the European Commission, the Spanish government remains cautious about the development of markets in the medium term and is now warning. decision to withdraw and extend most of the measures to avoid price hikes in electricity and natural gas at the end of the year. A decision that the Executive will in any case correspond in the general elections to be held on 23 July.

“We have a package of measures, most of which are in place by the end of the year, which gives us peace of mind and reassurance, so we will see by the end of the year whether it is necessary to follow up. If we need to demand and raise the need to accept the Commission’s recommendations and cancel or, on the contrary, extend these measures until 2024,” it was highlighted this Thursday. Vice President and Minister of Ecological Transition, Teresa RiberaIn his statements to the press following Brussels’ recommendations to withdraw intrusive measures.

Others’ precautions

In any case, Ribera himself comments that the European Commission’s report advocating the gradual withdrawal of anti-crisis shields refers more to the policies developed by other major economies to defend their industrial companies, rather than to the measures implemented by the Spanish Governing Body.

“I think this is a warning not to Spain but to states with large financial capacity that are declaring large expenditures in the form of State aid to their sectors and should be interpreted in that context,” the vice-president said. In an interview with Energy Newspaper. “The Commission’s report should be understood in a context that has much less to do with other member states than Spain, which is much more worrisome in terms of stability in the internal market,” he says.

Recently, other members of the Government, such as Nadia Calviño, Vice President of Economy, or María Jesus Montero, Minister of Finance, emphasize that they will rush to the last moment to make a decision depending on the current economic situation. If other measures that expire at the end of this month, such as a VAT reduction on food or a fuel reduction for professionals in the economic sectors most affected by the fuel price, are terminated or extended.

The ‘other’ message sent to Brussels

However, the Government has already conveyed to Brussels its desire to end some of the major measures against the crisis for next year. In the 2023-2026 Stabilization Plan and National Program, the government states, “The fall in energy prices and the fall in inflation will allow for the withdrawal of extraordinary support measures in 2023 and 2024 in response to the impact of the war.” Reforms 2023 were submitted to the European Commission one month ago.

The executive is creating a precautionary shield against the blow of the rise in prices caused by the energy crisis and exacerbated by Russia’s military invasion of Ukraine. For two years they have been putting together, redefining and expanding their anti-crisis plans to deal with the escalating crisis. electricity, natural gas and fuel prices. Regarding the effects of exceptional measures stemming from the energy crisis due to the war in Ukraine, the executive said in official documents sent to Brussels that the measures approved in 2022 and 2023 are envisaged to be rolled back in 2024.

The government maintains consumer protection plans in place in the event of a resumption of tensions in the electricity and gas markets, as a kind of safety net against possible exorbitant increases in electricity and gas bills for millions of homes and businesses. Tax rebates, ceilings and direct subsidies have been extended until the end of 2023, when municipal and regional elections will be held in May and will in principle end with general elections in December.

Throughout the energy crisis, the ministries of Economic Affairs, Finance, Industry and Ecological Transition advocated continuing. apply temporary limited extensions hedging measures (usually quarterly or semi-annually) to measure the evolution of prices and determine whether their protection is justified or whether reinforcement is necessary. In the last expansion of the shield, this meant maintaining the validity of most of the energy measures throughout the year.