Spain’s contingency plan will support the steel industry

The Spanish government gave guarantees to the domestic steel sector that its contingency plan for the energy crisis will provide a response according to the needs of large consumers of energy. This was understood after the meeting between steelmakers, autonomous communities, and workers unions representatives with the Minister of Industry, Commerce and Tourism, said Reyes Maroto on Monday.

Maroto admitted that energy prices affect the development of all industrial sectors, and especially the steel industry, Kallanish reports.

“The government is working on a contingency plan that should be announced before the end of September, and with which we intend to achieve a European response in accordance with the needs of large energy consumers, such as the steel industry,” Maroto comments. “Last Friday, there was a unanimous agreement in the European Energy Council to enable intervention mechanisms in the wholesale electricity market.”

During the meeting, the minister pointed out that the Spanish government has supported electricity and gas intensive industries with more than €850 million ($863.9m) in recent months to deal with the rise in energy prices as a result of the Russian invasion of Ukraine.

“The government is aware of the importance of the steel sector in the Spanish economy and its contribution. For this reason, we have approved measures to respond to the demand of the industry, such as lowering energy taxes and increasing direct aid, and raising the compensatory for CO2 emission costs to €244m, while working with Brussels to increase the maximum threshold of this aid for future calls,” Maroto confirms.

In May, Spain and Portugal reached an agreement with the European Commission to establish a temporary mechanism, the so-called Iberian mechanism, recognizing the countries as an energy island. The scheme has allowed the implementation of temporary and exceptional measures to reduce electricity prices for end consumers and business.

Since its application, the Iberian mechanism has saved €2 billion for Spaniards on electricity bills.

Todor Kirkov Bulgaria