The new measures, which will be adopted by the cabinet next week, were announced in parliament by Prime Minister Pedro Sanchez who said they would “reinforce public protection” in the face of the ongoing energy crisis.
“We are going to release around 3.0 billion euros ($2.9 billion) from the state budget to protect people from rising energy prices. These are measures which, as a whole, will protect up to 40 percent of households in Spain,” he said.
Central to the plan is a new rate for those living in residential buildings with shared gas central heating systems, which have been badly hit by soaring prices.
The new rate, which will limit quarterly price rises and remain in place until the end of 2023, “will affect around 1.7 million homes which will see their bills more than halved compared with the price on the open market,” he said.
The plan also outlines an increase in the energy discount granted to 1.3 million of the most vulnerable households, which will also be extended to another 1.5 million limited-income families who until now had not been included.
And it will also raise the heating subsidy granted to vulnerable households which will now be able to claim up to 375 euros a year for heating costs.
Like other countries across Europe, Spain has been struggling with soaring inflation, rolling out a series of aid packages to help households and businesses cope with runaway prices, introducing free or discounted public transport and fuel subsidies.
Over the summer, Sanchez said the total cost for the various government aid packages was close to 30 billion euros -- or 2.3 percent of Spain’s gross domestic product.
