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European Commission backs Spanish Electro-intensive Statute

Monday 11 January 2021

Reyes Maroto argued that, with this backing from the European Commission, the Spanish scheme to partially compensate energy-intensive companies will be regulated under the EU rules on State aid".

The Electro-intensive Statute, approved by the government on 15 December 2020, is a mechanism that provides certain industrial companies, specifically those where the cost of the electricity supply is particularly critical, with a legal and economic framework that offers security and certainty to energy costs and enhances their international competitiveness.

Among the mechanisms included under the Statute, and which have been approved by the EU, worthy of mention is the compensation for certain charges that affect electricity costs, up to a maximum of 85% of the costs attributable to the charges, passed on to the prices for the supply of electricity, by the financing of renewable energy costs, the costs of high efficiency co-generation and the additional cost corresponding to non-peninsular regions, which amounts to 92 million euros this year.

The mechanism also contains cover for risks stemming from the acquisition of electricity in the medium and long term by electro-intensive consumers. The State, through the Spanish Reserve Fund for Electro-intensive Entity Guarantees (Spanish acronym: FERGEI), with a provision of 200 million euros per annum, will be responsible for coving the risks stemming from the purchase of electricity in the medium and long term from electro-intensive consumers.

Brussels has approved the Electro-intensive Statute after establishing that it is in line with the EU guidelines on State aid to protect the environment and energy 2014-2020, which authorise certain reductions of this type for companies highly exposed to international trade to guarantee their global competitiveness.

Non official translation