In a climate of high gas usage, Monday saw a firm rejection of reactivating a government initiative to establish the National Fund for the Sustainability of the Electricity System (FNSSE). Industry representatives argued that the creation of the fund would severely burden gas-intensive sectors already facing stiff price pressures, threatening ongoing operations and employment in a challenging economic environment.
The Gas Industry Employers’ Association, which unites the largest gas-consuming operators, including Ence, Fertiberia, and Minersa (a company rooted in Asturias), urged that the fund either not move forward or, if it does, include robust safeguards for energy-intensive industries. The association noted that no European economy would penalize its industrial base in this manner.
This stance was echoed by the Alliance for the Competitiveness of Spanish Industry, which issued a similar warning in May. The alliance represents leaders from steel, paper, cement, automotive, refining, chemical, and food sectors, all of whom rely on affordable electricity to remain competitive.
The stated objective of the fund is to lower the electricity bill by about 13 percent over five years by removing the cost of renewable energy premiums from the consumer bill. Total renewables subsidies amount to 7,000 million euros and are currently funded through electricity consumers, with the plan calling for the cost to be spread across all energy sources, including gas and oil. This shift would place the burden on gas marketers to cover the gas-related portion, but industry observers warn that the final price tag would be passed through to households and businesses alike. The manufacturing sector estimates that this could push annual energy-related costs up by roughly 45 percent compared with the 2,592 million currently paid into the gas system’s tolls and fees. Supporters of the fund argue that stabilizing energy prices is essential for domestic producers, though critics fear it could distort market signals and undermine incentives for energy efficiency and fuel-switching in the broader economy. The gas-consuming sector notes that as gas costs have risen, consumption patterns have already shifted downward, complicating the argument for a sweeping, system-wide subsidy shift that would intensify the cost burden on the industrial base. May’s data point remains stubbornly high in double digits for gas prices.
Across the border, the German government has announced a difficult but strategic move to keep some coal-fired plants online to curb gas usage and mitigate potential disruption from reduced Russian gas supply during the winter. Austria has indicated a similar measure, reclaiming one of its thermal plants for the same aim of safeguarding energy security and stability in moments of tight supply.