The People’s Party presented a comprehensive energy plan to support the government of Pedro Sánchez. The document will be sent on Monday as part of a commitment to help the executive prepare a Contingency Plan for a possible gas supply interruption from Russia. The plan is broad, outlining 23 measures across short, medium, and long-term horizons. The standout proposal aims to cut energy bills through voluntary savings, encouraging households and businesses to reduce consumption by 5% to 40%. The plan suggests funding these savings with around 2.9 billion euros drawn from other measures in the public coffers.
Specifically, the party led by Alberto Núñez Feijóo offers a 5% discount for individuals and small to medium-sized enterprises, with a 10% reduction on electricity and gas bills. The discounts scale with actual consumption reductions: a 3%–7% drop compared to the same month last year yields modest savings; a 7%–15% reduction yields 10% off electricity and 20% off gas; a 15% or greater reduction yields 20% off electricity and 40% off gas. These incentives are recommended for the November to March period. The aim is to shift from a mandatory framework to a voluntary one, emphasizing personal responsibility. A spokesperson explained that the measure embodies the idea of each person doing their part.
The party’s document includes 23 important measures spanning different timeframes and areas of energy policy. It references collaboration with entities such as a senior energy regulator and the national grid for analysis of expenditures and the measures already taken. The plan also contemplates European tax considerations, including adjustments to CO2 emission right prices, and calls for Brussels to review gas pricing with a focus on consensus with suppliers such as the United States, Norway, and Algeria.
Sánchez was emboldened and challenged Feijóo to more duels in the Senate
Feijóo’s party also advocates closer cooperation with the European Commission. It supports capturing unexpected profits from power plants that do not rely on gas, including renewable, nuclear, and hydroelectric facilities. The proposal notes that Brussels currently imposes a higher threshold for this regime, while Spain exempts plants contracted at a fixed price of less than EUR 67 per megawatt. The current European offer stands at around 200 euros per megawatt-hour.
In addition, the PP calls for simpler energy taxation to avoid losing revenue, alongside steps to reduce taxes on electricity and gas. It also promotes energy efficiency actions and renewable energy. The plan reiterates familiar proposals such as extending the operating life of Spain’s nuclear plants, which are slated for potential shutdown talks beginning in 2027 under the present government agreements with plant operators.
Beyond these points, many proposals align with the Ministry of Ecological Transition’s agenda. The plan supports the MidCat gas pipeline but with a long-term vision to enable future green hydrogen transport, aligned with executive preferences. It also encourages the signing of power purchase agreements (PPAs) and proposes financial guarantees to promote such contracts. A fund named Fergei, currently created by the Ministry of Industry, would support PPAs between industrial consumers and generators. The plan also calls for reform of the regulated market (PVPC) to connect a portion of prices to the futures market. The government had agreed to submit a proposal to Brussels to launch this reform at the start of 2023.