Spanish steelmakers association UNESID, Association of Companies with Large Energy Consumption AEGE & Federación Empresarial de la Industria Química Española FEIQUE have sent a letter to EU’s Commissioner for Internal Market Mr Thierry Breton & Commissioner for Energy Kadri Simson demanding an urgent decision from the EU, reforming the marginalist electricity market while the energy crisis lasts, decoupling the price of fossil fuels from the setting of the electricity price in the market. They consider that it is the only viable measure with an impact to be able to maintain industrial activity and employment. They wrote “Since last summer, the electricity-intensive industries have suffered from a very serious energy crisis generated by the evolution of the price of gas and emission rights. With the war in Ukraine, the situation becomes an unprecedented industrial emergency. If the rise in electricity prices is generalized throughout the EU, the peculiarities of the Iberian market make the situation much more critical in Spain.”The associations say in their letters that “It is impossible to maintain activity with these electricity prices" and that, if the situation does not straighten out in the coming days, many companies already in temporary closures will be forced to launch temporary employment regulation files ERTES and possible production relocations. At the same time, others that cannot stop their installations begin to reduce production to the minimum allowed.”They added “The unprecedented critical moment that the EU is experiencing requires limited and temporary emergency measures. In Spain, more than 80% of industrial consumption is exposed to the price of the daily electricity market. Without bilateral contract offers from electricity companies at pre-crisis prices, Spanish companies urgently need action from the European institutions and the Spanish Government: it is essential to safeguard basic industry, the Spanish economy and the employment of hundreds of thousands of affected workers.”The associations reiterate to the Commissioners that the moment is crucial, in the middle of a war that has aggravated the industrial alert, which, if not tackled, will seriously jeopardize the economic future of Spain and Europe.The Spanish steel industry produces about 14.2 million tonnes of steel per year
Spanish steelmakers association UNESID, Association of Companies with Large Energy Consumption AEGE & Federación Empresarial de la Industria Química Española FEIQUE have sent a letter to EU’s Commissioner for Internal Market Mr Thierry Breton & Commissioner for Energy Kadri Simson demanding an urgent decision from the EU, reforming the marginalist electricity market while the energy crisis lasts, decoupling the price of fossil fuels from the setting of the electricity price in the market. They consider that it is the only viable measure with an impact to be able to maintain industrial activity and employment. They wrote “Since last summer, the electricity-intensive industries have suffered from a very serious energy crisis generated by the evolution of the price of gas and emission rights. With the war in Ukraine, the situation becomes an unprecedented industrial emergency. If the rise in electricity prices is generalized throughout the EU, the peculiarities of the Iberian market make the situation much more critical in Spain.”The associations say in their letters that “It is impossible to maintain activity with these electricity prices" and that, if the situation does not straighten out in the coming days, many companies already in temporary closures will be forced to launch temporary employment regulation files ERTES and possible production relocations. At the same time, others that cannot stop their installations begin to reduce production to the minimum allowed.”They added “The unprecedented critical moment that the EU is experiencing requires limited and temporary emergency measures. In Spain, more than 80% of industrial consumption is exposed to the price of the daily electricity market. Without bilateral contract offers from electricity companies at pre-crisis prices, Spanish companies urgently need action from the European institutions and the Spanish Government: it is essential to safeguard basic industry, the Spanish economy and the employment of hundreds of thousands of affected workers.”The associations reiterate to the Commissioners that the moment is crucial, in the middle of a war that has aggravated the industrial alert, which, if not tackled, will seriously jeopardize the economic future of Spain and Europe.The Spanish steel industry produces about 14.2 million tonnes of steel per year
