Spain Announces €5bn Anti-Crisis Energy Plan

The President of the Government, Pedro Sánchez Pérez-Castejón, has announced a package of urgent measures in response to the impact of the war in the Middle East, including tax cuts on electricity and fuel, as well as aid for the most affected sectors.

80 urgent measures in response to the impact of the conflict in the Middle East will come into force tomorrow and will exceed €5 billion, benefiting 20 million households and three million businesses in the country.

It reduces taxes on electricity by up to 60%, including the temporary suspension of the IVPEE. It also reduces the electricity tax (IEE) to the minimum and includes a reduction in VAT on electricity, fuel, and natural gas from 21% to 10%.

It establishes aid of 20 cents per litre of fuel for transport operators, farmers, livestock breeders, and fishermen, along with equivalent support for fertilisers.

The extraordinary discounts of the social electricity tariff are extended, the thermal social bonus is reinforced, and the ban on cutting off basic utilities to vulnerable households is extended throughout 2026. At the same time, toll charges for energy-intensive industries are reduced by 80%.

A second pillar of the package contains structural measures to accelerate energy sovereignty, and a second decree has been approved establishing a temporary freeze on rental prices, similar to that applied in previous crises.

Will update when more information is available from the government source.

Update.  Now published in the State Bulletin

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