The government is finalizing the reform of the electricity bill reduction mechanism benefiting hundreds of Spanish industrial companies. The executive plans to introduce a royal decree to the Cabinet to reformulate it in the coming weeks. Electro Intensive Consumer Regulation adapt it to the new EU aid regulation and with it expand economic sectors that could benefit from assistance The number of beneficiaries will increase rapidly.
The Ministry of Industry awaits final approval only from the European Commission and also replaces the Council of State, with confirmation that the text complies with the new community guidelines on state aid in the environment and energy field. Approval of the National Markets and Competition Commission (CNMC). Once the reform is approved, the Ministry under the command of Reyes Maroto, who is still awaiting his march to run for mayor of socialist Madrid, will make the first call for aid with the new regulation.
The new distribution system will increase the number of economic sectors that the European Union allows to be considered electro-intensive in order to receive special assistance and reduce the enormous weight of the cost of electricity on its activities. HE The number of beneficiary sectors will increase from the current 62 to a total of 118 (perhaps finally to 119 at the request of the CNMC) after including all extractive industries in line with the Brussels strategy to promote community autonomy in the management of their own raw materials.
The aid consists of a reduction in the fees included in the receipts of industrial companies (which finance regulated renewable energy sources, the debt of the system and the extra costs of non-peninsula regions). Discounts will be 75% of fees for companies “at risk” and 85% for companies at “significant risk”.Although it is determined according to the weight of the cost of electricity in their calculations, it is considered that these thresholds can be exceeded if certain conditions are met and the groups are especially exposed to the energy price.
The Ministry of Industry plans to relax some requirements to make it easier for more companies to access assistance: the required intensity of electricity use will be reduced from 10% to 5% of the company’s gross value added; the requirement for 50% of electricity consumption to be off-peak hours will not apply as an exception to this year’s aid; It is easier for companies that meet all or most of their electricity needs with self-consumption to get help; The scope of actions, which are among the investments to be made in energy efficiency in order to receive assistance, has been expanded.
The result, according to the calculations made by the Ministry of Industry itself, companies benefiting from the reduction of invoice fees will increase from approximately 610 currently to approximately 1,050 companies in total (225 persons in the “at risk” category and 828 in the “significantly at risk” category. In total, the General Government Budgets will demand approximately 65 million euros per year to cover some of these companies’ energy costs, as envisaged.
Temporary ‘anti-crisis’ discount
In parallel, and as part of the extraordinary measures to mitigate the impact of the electricity surge contained in the third anti-crisis decree, the Government has decided to temporarily reduce 80% of the tolls paid by electro-intensive companies on their roads. electricity bill (in which investments in electricity distribution and transmission networks are paid).
The executive has decided to extend the measure only until June 30, but Large Energy Consumption Companies Association (AEGE) It is currently calling on the Government to maintain this reduction through at least 2023 as a fundamental safeguard for large industry.
From the executive, for now, major industry has been long on extending this other temporary aid. State government resources should be evaluated on the basis of the evolution of energy prices and their impact on the sector, “it is too early to assess whether this exemption will be extended beyond this date.”