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Spain plans ‘additions’ to controversial power bill claw-back law

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MADRID, Oct 14 (Reuters) – Spain plans to introduce “additional measures” to a controversial bill that claws again earnings from power corporations in a bid to shield shoppers from sky-high vitality costs, Energy and Environment Minister Teresa Ribera mentioned on Thursday.

Companies together with wind vitality chief Iberdrola (IBE.MC) have complained to the European Union in regards to the decree, which was a part of Spain’s response to a worldwide spike in power costs prompted partly by excessive demand from economies recovering from COVID-19, and low fuel shares. learn extra

The bill initially envisaged skimming some 2.6 billion euros off the businesses’ earnings, however the price is now seemingly to be increased as a result of it’s linked to fuel costs which have climbed even additional because it was launched.

Ribera informed lawmakers she hoped to provide you with “additional measures” within the coming weeks, including on Twitter that these would give “reasonable prices to industry and more protection to vulnerable consumers”.

She gave no additional particulars on what the extra measures may very well be however shares within the most-affected corporations nonetheless recovered a few of the floor that they had misplaced because the decree was unveiled.

Iberdrola shares traded up greater than 2%, having beforehand shed 7.5% of their market worth since mid-September. Enel unit Endesa (ELE.MC), which not like Iberdrola operates solely in Spain, climbed greater than 3%, having beforehand misplaced greater than 10%.

“It is a positive message to give regulatory security and speed up the energy transition, but my question is whether the approved regulation could bring about precisely the opposite,” mentioned Fernando Garcia, director of European utilities fairness analysis at RBC Capital Markets.

“I hope these words signal a return to more reasonable regulatory measures,” he added.

After a heated debate, Congress ratified the decree with 182 votes in favour and 150 in opposition to, though the regulation was technically already in vigour.

Additional reporting by Jesús Aguado and Belen Carreno; Editing by Kirsten Donovan

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