The Spanish government has introduced a series of measures in an attempt to reduce household electricity costs.
Prime Minister Pedro Sánchez has said he wants to reduce “windfall benefits” for energy companies under current regulations.
Wholesale electricity prices have reached record levels in recent months and have sparked an uproar among consumer associations across Spain.
Spanish news agency Europa Press reported that electricity costs are more than 250% higher than a year ago.
Sánchez said that among other measures, his government intended to remove a 7% tax on electricity production. A separate energy tax to be reduced from 5.1% to 0.5%
The decision to reduce energy taxes aims to transfer tax benefits to Spanish customers. Talk to public broadcaster RTVE, Sánchez also expressed hope to avoid a potentially sharp increase in natural gas prices.
The Spanish government says the increases in electricity bills are due to soaring prices for so-called carbon certificates, which give companies the right to release carbon dioxide.
Soaring domestic prices are also a problem in other European countries. Spain’s Environment Minister recently sent a letter to the European Commission, stressing the need to reform the bloc’s electricity market.