2023-07-03 04:15:00
The Government of Spain recognizes that the compensation it offers to the large electro-intensive industry for the indirect costs of CO2 in the electricity bill are almost three times lower than the ceiling allowed by the European Union (EU). The Government of Asturias, the employers’ association FADE and the majority unions in the region have been demanding that the Government for these aids reach the maximum that Brussels allows so that the industries of the region with great energy consumption are competitive compared to those of other European countries.
In the update of the National Integrated Energy and Climate Plan 2023-2030 (PNIEC) that the Ministry for the Ecological Transition has just sent to the European Commission, it is noted that so far in the period 2021-2030 Spain has entered an annual average of around 2,850 million euros in the emission rights auctions. In the same document it is recognized that up to 25% of the income can be allocated to compensation to the industries for the effects of the indirect costs of CO2, because these companies, in addition to paying for their emissions into the atmosphere, later have to assume in the energy bill that pays for the incorporation of the cost of the emission right of electricity generation.
25% of the income obtained from the auctions, taking into account the figure of 2,850 million contributed by the Government, is equivalent to 712 million euros. However, the money available for compensation last year was 244 million euros and the same amount has been budgeted for this year, which is almost three times less than the limit allowed by the EU.
From the Government it is highlighted that in the 2022 call -in which the indirect costs incurred in 2021 were compensated-, the available funds covered 94% of the eligible costs in accordance with the guidelines of the European Commission.
aid in the region
Compensation for indirect CO2 costs is the main economic support obtained by electro-intensive industries to lower the price of electricity and avoid loss of competitiveness in international markets. Last year, Asturian industries received 39.4 million euros this way, which went to the companies Asturiana de Zinc (19,574,691 euros), ArcelorMittal (17,112,365 euros), Ence (1,777,757 euros), Asturiana de Aleaciones (629,557 euros), Asturiana de Laminados (149,004 euros) and Minersa (138,243 euros).
To be eligible for compensation, electro-intensive companies have to follow certain energy audit recommendations, cover at least 30% of their electricity consumption with sources without carbon emissions or invest at least 50% of the amount of the aid in projects that lead to substantial reductions in greenhouse gas emissions at their facilities.
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