Spanish premier announces further €3 billion to reduce household energy bills

By Alyssa McMurtry

OVIEDO, Spain (AA) - The Spanish prime minister on Thursday announced an additional €3 billion ($2.9 billion) in government aid to reduce household energy bills.

Speaking in the Spanish parliament, Pedro Sanchez said the benefits will reach around 40% of households.

Although Spain is less dependent on Russian energy than other EU countries and has implemented a price cap on gas, the average consumer electricity prices have shot up around 60% over the last year, according to Eurostat.

Russia has drastically cut gas supplies to Europe in response to tough sanctions for its "special military operation" in Ukraine, resulting in skyrocketing prices.

The government’s new measures aim to reduce consumers’ exposure to volatile prices and provide extra support for vulnerable households.

For instance, 1.3 million households who qualify for social assistance will receive between 65% and 80% discounts on their electricity bills. More households will also qualify for discounts of up to 40%.

Apartment buildings with central natural gas heating will also be able to access a new regulated tariff, which Sanchez said would cut bills in half.

“We can’t choose the challenges we face. But we can choose how to respond to them,” Sanchez told lawmakers. “We’re going to continue protecting the middle and working classes, which starkly contrasts with what other governments did during the financial crisis, which was used to impose a neoliberal agenda.”

He said the measures will be paid for in taxes. From 2023, Spain will levy a temporary wealth tax on those with more than €2 million, as well as windfall taxes on banks and energy companies.

Sanchez said that “sooner or later,” the energy price landscape would improve, adding: “Today, Putin is not winning the war. He isn’t accomplishing his military goals."