Spain exempts large power consumers from total lockdown

Spain has exempted much of its metals, chemicals, cement and other large power-consuming industries from the halt in non-essential economic activity decreed in the country from 30 March, although they will still have to cut output.

Large power consumers including steel mills, the automotive industry and plants supplying Spain's export market will have to reduce activity and staffing to "minimum levels", corresponding to the times of a plant's lowest productivity during the year.

Spain widened its restrictions on travel and economic activity to combat the spread of the coronavirus to all non-essential industry from 30 March as the country struggles to control the pandemic. Over 100,000 people have been infected and more than 9,000 have died in the country as of today, the second-highest levels in Europe after Italy.

Spain's government appeared to ease the stance regarding large power consumers in a clarificatory note published yesterday by the industry ministry and in comments after an emergency cabinet meeting.

The note describes the activities that are considered to provide essential goods and services during the crisis and the minimum activity levels for industries that are not seen as essential but for which shutting down plants is a lengthy, risky and expensive task.

It also specifies that workers that deal directly and indirectly in import and export sectors, including for non-essential goods, are also allowed to travel to work — indicating that Spain's cement and chemicals sectors will also be allowed to keep operating to the extent that they meet their international contracts.

Part of the confusion over the areas of the economy that can be qualified as essential was highlighted in an earlier note published by the regional government of Asturias, which houses much of Spain's metallurgy, mining and extractive industry.

Asturias pre-empted the declarations by the government yesterday and after talks with local businesses qualified large slices of its economy as linked, albeit indirectly, to the production of goods and services classed as essential during the crisis and requested the central government put no limits on their productive capacity during the lockdown.

Spain's association of steelmakers Unesid said late yesterday that it has also asked the central government to consider its business as essential for "guaranteeing the stability of Spain's power sector", and refrain from putting limits on output.

Despite the greater flexibility over production curbs shown by the government yesterday, steelmakers and other large power consumers will still be obliged to cut output to levels that restrict the movement of their workers to minimum levels, according to Spain's economy minister Nadina Calvino. "I think we have been clear enough on this point," the minister said.

By Jonathan Gleave

source: Argus Media