The Spanish organisation Unesid is calling for the extension of tax relief on electricity

The high cost of energy has a negative impact on the competitiveness of production

The Spanish steel industry has urged the government to extend the tax relief on energy, which is due to expire on 30 June. The local steel producers’ association, Unesid, notes that the high cost of energy remains one of the key factors hampering the competitiveness of domestic production, as well as negatively impacting investment activity and decarbonisation processes. This was reported by Kallanish.

During the association’s annual meeting, Unesid President Bernardo Velázquez and Chief Executive Carola Hermoso emphasised the need to create stable conditions for energy-intensive enterprises. The organisation has put forward the following demands to the government:

Extension of tax relief. To extend the reduction in the tax on electricity generation and the special tax on electricity for the duration of exceptional market circumstances. The steelmakers are convinced that these measures should become permanent.
Affordable tariffs. Maintain mechanisms that ensure access to electricity at competitive prices.
Compensation for emissions. Increase compensation for indirect CO₂ costs to the maximum levels permitted under EU legislation.

Unesid warns that rising global steel overcapacity and tougher trade policies in other countries are increasing pressure on the European market. This poses a serious risk of cheap imports being redirected to the EU. As a result, European producers continue to lose market share to competitors from third countries amid economic instability.

To protect domestic producers, the association is calling for a significant strengthening of trade defence measures and the Cross-Border Carbon Adjustment Mechanism (CBAM). In particular, it proposes:

extending trade defence measures to finished metal products (downstream products);
introducing a strict ‘Melt & Pour’ criterion for the origin of steel;
extending the scope of the CBAM to cover the entire value chain;
strengthening customs controls and verification mechanisms to prevent the circumvention of trade restrictions

As reported by GMK Center, Unesid insists that Europe needs an open steel market with the UK. The association has expressed concern over the UK’s recent introduction of a series of protective measures that could adversely affect the European steel industry.