The government is finalizing reforms to the electricity bill reduction mechanism that benefits hundreds of Spanish industrial companies. A royal decree will be presented to the Cabinet in the coming weeks to redefine the policy. The Electro Intensive Consumer Regulation will be adapted to align with the new EU aid rules, broadening the range of sectors eligible for assistance. The number of beneficiaries is set to grow quickly.
The Ministry of Industry awaits final approval from the European Commission and will replace the Council of State with confirmation that the text complies with the latest EU guidelines on state aid in energy and environmental matters. The National Markets and Competition Commission (CNMC) will also review the changes. Once approved, the ministry, led by Reyes Maroto, who is preparing to step down as Madrid’s socialist candidate, will issue the first aid call under the new regulation.
The revised distribution framework will expand the list of sectors classified as electro-intensive, allowing more to receive targeted support and easing the heavy electricity costs that weigh on their operations. The number of beneficiary sectors could rise from the current 62 to 118, with some expectations of 119 after CNMC input, reflecting Brussels’ push for regional autonomy in managing raw materials.
The aid will reduce industrial fees that are part of electricity receipts, which fund regulated renewable energy, system debt, and extra costs in non-peninsula regions. Discounts will reach 75% for companies considered at risk and 85% for those at significant risk. While the exact thresholds depend on electricity cost share in each calculation, they may be adjusted if certain conditions apply to groups facing high energy prices.
The Ministry plans to ease several criteria to widen access to aid. The required electricity-use intensity will drop from 10% to 5% of a company’s gross value added; the 50% off-peak consumption condition will be relaxed as an exception for this year’s aid; and self-consumption-heavy businesses will find it easier to qualify. The scope of eligible energy-efficiency investments has also been expanded to include a broader set of actions.
According to the ministry’s own projections, the number of firms benefiting from the bill-fee reductions could climb from around 610 to roughly 1,050, including about 225 in the at-risk category and 828 in the significantly at risk group. The overall General Government Budgets are expected to cover roughly 65 million euros annually to help offset part of these energy costs.
Temporary anti-crisis discount
In parallel with the reforms, as part of extraordinary measures to counteract the electricity surge, the government has temporarily suspended 80% of tolls for electro-intensive companies on their road freight related to electricity services and network investments. The extension is currently planned only through June 30, though the Large Energy Consumption Companies Association (AEGE) is urging a continuation into 2023 as a key safeguard for heavy industry.
From the government’s perspective, ongoing support for major industry will depend on energy-price trends and their sector-wide impact. Officials note that it is premature to decide whether the exemption will be extended beyond the stated date.