Government to contribute at least 670 million to avert electricity system deficit

The Ministry for Ecological Transition will approve two extraordinary credits worth 220 and 450 million euros to offset the 80% cut in fees for electrointensive industry and the suspension of the 7% IVPEE tax in 2026. These measures are part of the Real Decreto Ley approved by the Council of Ministers on Friday, published in the BOE on Saturday, and effective from Sunday.

The Spanish government has approved a Real Decreto Ley as part of the Comprehensive Response Plan to the Crisis in the Middle East, which includes compensations for the electricity system. The Ministry for Ecological Transition, led by Sara Aagesen, will release an extraordinary credit of 220 million euros to cover the cost of the 80% reduction in access fees for large electrointensive industry until December 31, 2026. The National Commission on Markets and Competition (CNMC) must account for it when settling system accounts, as fees are part of the fixed portion of electricity bills, along with charges.

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Chilean minister Álvaro García announces electricity tariff refunds at a press conference, highlighting government agreement to return millions due to overcharges.
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Chilean government agrees to refund overcharges in electricity tariffs

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Chile's Economy and Energy Biminister Álvaro García announced that Transelec has agreed to refund US$ 135 million overcharged in electricity bills starting in January. This deal adds to the US$ 115 million that generators must return due to calculation errors dating back to 2017. The crisis, which led to Energy Minister Diego Pardow's resignation, highlights failures in government management and the electricity sector.

The Colombian government issued legislative decree 0044 on January 21, 2026, to ensure the continuity of electricity services amid an imminent crisis. The exceptional measures aim to bolster sector liquidity without impacting users or tariffs. Mines and Energy Minister Edwin Palma stressed the goal of preventing widespread blackouts in vulnerable areas like the Caribbean.

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The National Association of Electricity Generators (Andeg) warned that Decree 0044 of 2026 from the Ministry of Finance jeopardizes the financial stability of the energy sector by imposing a 2.5% parafiscal contribution and a 12% energy contribution. The guild, led by Alejandro Castañeda, labels the measure as confiscatory and legally flawed, requesting review by the Constitutional Court. The decree aims to fund interventions in companies like Air-e, which has been under intervention for over 17 months.

Egypt's Ministry of Electricity and Renewable Energy announced an investment of approximately EGP 26.5bn in fiscal year 2024/2025 to modernize and expand the power transmission network, aiming to boost grid efficiency and integrate renewable energy into the national grid. Minister Mahmoud Esmat reaffirmed the government's commitment to providing high-quality, continuous, and stable electricity while accelerating upgrades to handle growing renewable capacity.

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Spain's Ministry of Transport has agreed with the National Road Transport Committee (CNTC) to modify the road freight price review formula, raising fuel's weight from 30% to 40% currently. The measure addresses the crisis from the Iran conflict since February 28 and adds to existing aids. The new royal decree-law will go to the Council of Ministers tomorrow.

The European Commission, led by Ursula von der Leyen, proposes reducing electricity taxes, reviewing the carbon emissions market, and avoiding premature nuclear plant closures to lower energy prices amid the Middle East war. These measures address surging oil prices due to the Strait of Hormuz closure, costing 6 billion euros since February 28. The EU meanwhile rejects military involvement in the conflict despite pressure from Donald Trump.

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José Antonio Kast's government withdrew 47 environmental and electrical supreme decrees from the Comptroller General of the Republic that were pushed by the previous administration. The ministries of Environment and Energy describe it as a routine review. Critics see it as a setback.

 

 

 

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