Spains newly instituted power reforms will be devastating
for the future of the countrys steel industry, according
to Spanish steel association Unesid.
The reforms, which
were introduced in mid-July, will reduce subsidies for
renewable energy generation and electricity, and will cost
utility companies in Spain as much as 2.7 billion euros ($3.6
billion) and consumers 900 million ($1.2 billion),
according to Spanish Industry Minister Jose Manuel Soria.
The reforms are part
of the new Spanish governments efforts to eliminate the
energy industrys deficit, Soria said.
Minister Luis de Guindos described the reforms as "absolutely
unavoidable for the sake of guaranteeing consumer protection in
Spain." However, Unesid said that negative effects have already
of the sectorwhich is the main industrial consumer of
electricityare not asking for subsidies, but rather
energy prices that remain competitive next to those of other
European countries," Unesid said.
Commission, which presented its Steel Action Plan on June 11,
said that affordable energy costs are essential to the
preservation of the European Union steel industry.
"The completion of the
internal energy market and diversification of supply, as well
as increased energy efficiency, will contribute to lower
costs," the Commission said, adding that it was "willing to
provide guidance on long-term electricity contracts between
suppliers and customers to increase the predictability of such
A version of this article was first
published in AMM sister publication Steel