The European Commission approved last Friday, in accordance with EU state aid rules, the modification of a Spanish aid scheme aimed at companies with high energy consumption, consisting of reductions in electricity rates.
The scheme was initially approved by the Commission in March 2023. Under this scheme, aid is granted in the form of reductions of certain levies on electricity consumption for companies with high energy consumption. The aim of the scheme is to mitigate the risk that, due to these levies, large energy-consuming companies may relocate their activities to places outside the EU with less ambitious climate policies.
Spain notified the Commission of its intention to expand the scope of the scheme to include a reduction of the contribution of high energy-consuming companies derived from the National Energy Efficiency Obligations System, which aims to achieve Spain’s energy efficiency targets. The amendment entails a budget increase of 50 million euros over the duration of the scheme, bringing the total budget to 446 million euros.
The Commission has assessed the modified scheme in accordance with EU state aid rules, particularly the Article 107, paragraph 3, letter c), of the Treaty on the Functioning of the European Union, which allows Member States to support economic activities under certain conditions, and the Guidelines on state aid for climate, environmental protection and energy 2022, which allow Member States to grant aid in the form of reductions of levies on electricity for large energy consumers.
The Commission has found that the modified scheme facilitates the development of economic activities that heavily depend on electricity and are particularly exposed to international competition. Furthermore, the scheme remains necessary and appropriate to contribute to achieving the objectives of the Pact for a Clean Industry. Additionally, the scheme remains proportionate, as the amounts of individual aid are adjusted to the conditions of the Guidelines and the scheme is limited to the sectors listed therein. The Commission has also concluded that the positive effects of the scheme outweigh any potential negative effects on competition and trade in the EU. On this basis, the Commission has approved the modification in accordance with EU state aid rules.
The non-confidential version of the Decision will be published with the number SA.123095 in the State Aid Register of the competition website of the Commission, once confidentiality issues have been resolved.
