ANNOUNCEMENT 31 Jul 2012

In July 2012, the government of Spain announced a change in production support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 31 Jul 2012 | Removal date: open ended
Still in force

Production subsidy

On 31 July 2009, the Spanish Council of Ministers notified its intention to temporary buy and store local coal in order to safeguard local jobs, to reduce Spanish energy dependence and to ensure large scale supply.
According to the Spanish Government, the electricity-generation market cannot absorb all coal extracted in Spain. The state enterprise Hulleras del Norte S.A. (also known as HUNOSA) has thereforebeen entrusted by the government to purchase and store excess coal. Artificially creating higher demand for local coal, the measure protects the local coal industry and discriminates against foreign commerical interests.

AFFECTED SECTORS