Spain's PM announces €3bn aid to lower electricity bill for 40% of households

The Spanish PM, Pedro Sánchez, announced a €3 billion aid in order to lower the electricity bill for 40% of households.

In a speech in Congress on Thursday, he said that the cabinet will approve the measure next Tuesday, and will include a new regulated fare for community gas boilers, that is, for groups of residents of the same block who share the same boiler.

According to the PM, this will save money to 1.7 million households and will be in force until the end of 2023.

Also, the electricity 'social bonus' discount scheme, which is at the moment used by 1.3 million households, will increase 65% for vulnerable communities and 80% for seriously vulnerable ones.

The amount of energy included in the 'social bonus' discount will increase by 15%.

The thermal social bonus will also receive more funds, and those enjoying will see the average annual aid increase to an average of €375 – the annual maximum amount is now €350.

Around 1.5 million low-income households not enjoying any of these schemes will now also be eligible for a 40% discount in their electricity bill.

The Spanish government "will allocate around €3bn extra from the state's budget to protect citizens from energy price increases," Spanish PM Pedro Sánchez said during his speech.

Free trains until December 2023

Sánchez announced these measures just a month and a half after one of his government's most popular aid to counter inflation, free commuter train tickets, came into force.

Last week, the measure, originally expiring at the end of 2022, was extended for the whole of 2023.