EU backs €50m boost to Spanish aid scheme for power-hungry industries

EU backs €50m boost to Spanish aid scheme for power-hungry industries
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The European Commission has approved changes to a Spanish state aid scheme that reduces certain electricity-related charges for energy-intensive companies, under EU rules.

The scheme, first approved in March 2023, provides support by cutting specific levies paid on electricity consumption by companies that use large amounts of power, the Commission announced on Friday.

Spain told the Commission it wanted to expand the scheme to cover a reduction in a contribution linked to the National System of Energy Efficiency Obligations — a national programme designed to help meet Spain’s energy-efficiency targets.

The change increases the scheme’s budget by €50 million over its lifetime, taking the total to €446 million.

The Commission assessed the amended plan under EU State aid rules, including Article 107(3)(c) of the Treaty on the Functioning of the European Union and the 2022 climate, environmental protection and energy State aid guidelines, known as CEEAG.

What the Commission approved

The Commission said the amended scheme supports economic activities that rely heavily on electricity and face international competition.

It also declared that the scheme remains limited to sectors listed in the CEEAG, and that individual aid amounts must comply with the conditions set out in those guidelines.

A non-confidential version of the decision will be published in the Commission’s State aid register under case number SA.123095 once confidentiality issues have been resolved.


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