TAX cuts on electricity bills and a windfall tax on power companies will stay in place until the end of June.

IVA on bills were slashed in October from 21% to 10%.

The cut came in tandem with the elimination of a 7% ‘generation’ tax paid by power firms and the reduction of an electricity tax from 5.11% to 0.5%.

The measure has been extended twice and was due to expire at the end of April.

Prime Minister, Pedro Sanchez, announced the latest extension during a speech to Congress on Wednesday.

Sanchez said that a windfall tax will remain on energy firms who he believes ‘benefited from selling at higher rates boosted by increased wholesale gas prices’.

In the wake of Russia’s invasion of Ukraine, Sanchez called on Spain’s 17 regions to take measures to help the most vulnerable people in society at a time of general price rises.

He also announced an extension of up to 70% for the country’s most vulnerable groups.

In a separate move, Iberdrola said on Tuesday that it would freeze tariffs for domestic consumers who would otherwise be exposed to swings in wholesale market prices.

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