Major power company in Spain offers to help industrial customers if government scraps windfall tax plans

LEADING Spanish energy provider Iberdrola says it will help industrial customers if the government scraps plans for a windfall tax.

Domestic electricity bills have been subsidised by the government with reduced taxes since August after steep rises in wholesale prices.

Losses to national coffers are planned to be offset by a windfall tax on energy firms that is set to bring in around €3 billion.

Power companies have been criticised for excess profiteering thanks to the wholesale price hikes.

In a statement, Iberdrola has denied the claim stating that they ‘haven’t benefited from rises and have borne the additional costs’.

Government subsidies of bills have not extended to industrial users.

Iberdrola have now offered to ‘renew current contracted tariffs with industrial clients as far as it is possible to avoid harmful cost rises’.

The power giant says that in return for their gesture, they want the government to withdraw their plans to tax profits of utility companies.

It alleges that the prospect of such a tax carries the risk of driving away future investment.

Iberdrola president, Ignacio Sanchez Galan, said: “We are committed to supporting Spanish industry and helping our country’s prosperity.”

Sanchez Galan estimated that the windfall tax would create ‘serious damage’ of €1 billion per month for power companies in Spain.

Image Credit; Cordon Press

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