Government plan will cost the electricity companies 2.6 billion

The Spanish government have announced measures to lower the cost of electricity, and this plan will cost the electricity companies 2.6 billion.

The government have now approved a series of measures that will see electricity bills in Spain reduced. The measures will also lower the price of gas bills over the winter too. The aim is to reduce consumer bills, by hitting utility providers profit margins.

As reported by El Espanol, the government will force utility providers to “return some 2.6 billion ‘supervening remuneration’ due to high gas prices and taxation on the bills”.

According to ministerial sources the government’s aim is that “consumers pay this 2021 an amount equivalent to the amount they paid in their bills during 2018, adjusted by the CPI”. The average bill for most households is said to be around 600 euros per year, for those on low voltage.

The government will also bring in measures to protect water resources after the recent controversy when reservoirs were emptied during the peak of summer to create cheap electricity for the electricity companies, while consumers paid high costs still.

“The hydrographic confederations will apply criteria for the rational use of dammed water to protect the environment and combine electricity generation with other sustainable economic activities,” said the ministerial sources.

The government hope to protect vulnerable families. “It is a priority for this government, so as of today we are extending the four months that had been established so that no electricity company can cut off the supply to those who cannot pay for it, to six months”.

Thank you for reading, and don’t forget to check The Euro Weekly News for all your up-to-date local and international news stories.