Spain aims to use $3 billion from energy company profits to help consumers reduce electricity taxes as bills rise over the winter. Social Prime Minister Pedro Sánchez implemented on Tuesday, September 14, the “shock plan” that will allow citizens not to pay more than the 2018 bills they had. The inclusions are as follows:
• Electricity taxes are temporarily reduced from 5.1% to 0.5%.
• Bonus profits for energy companies will be transferred to consumers and infrastructure until April 2022.
• Spain will sell $1 billion in carbon emission permits on top of the $1.3 billion already sold.
• Natural gas price limits will result in a 4.4% increase in bills for 10.5 million homes rather than the expected 28% increase.

Energy costs continue to rise as gas prices increase in Europe. According to reports, the price per megawatt-hour on Wednesday, September 15, was $202.4, which was 12.6% more than the day before. Some countries affected are currently looking for ways to reduce consumer expenses, but Spain was the first to act. Italian Minister Robert Cingolani warned on Monday, September 13, that electricity rates would most likely jump by 40% in the next quarter. Meanwhile, Greece’s Energy Minister Kostas Skrekas announced that the government wants to provide energy financial assistance to the majority of households.