Cabinet sheds light on energy saving plan to

cut oil dependency

Speed reduction, efficient lighting and rail fare cuts top agenda

EL PAÍS - Madrid - 04/03/2011

www.elpais.com/english/

The Cabinet on Friday approved an energy saving plan aimed at reducing Spain's oil imports
by 28.6 million barrels- 4.5 percent of total imports- annually, which in conjunction with
other measures the government estimates will save state coffers up to 2.3 billion euros a year.

Among the measures to be introduced, the most controversial has been the reduction of the
speed limit on Spanish highways from 120 km/h to 110 km/h. The new mark will come into
effect on Monday and remain in force until at least July.

"Sometimes it is necessary to take measures, even if they are unpopular," Deputy Prime
Minister Alfredo Pérez Rubalcaba said. "With [the price of] a liter of gasoline at a historical
high [at around 1.30 euros] we must save because our economic recovery is on the line. Spain
is a country that for a long time has believed energy is free and it isn't. It is very expensive."

The reduction in oil imports is expected to save the economy in the region of ?1.5 billion a
year. The remainder of the forecast saving will hinge on the rolling out of further energy
saving measures, including low-consumption lighting in municipal buildings; a 20-euro
subsidy for each tire changed to a more efficient model; and a five-percent reduction in
regional train fares in Madrid and Catalonia. The government on Friday announced its
willingness to pick up the tab for the price cut, estimated at 26 million euros by the Catalan
regional government.

The switchover to energy saving light bulbs will be immediate in municipalities with fewer
than 200 inhabitants, while town halls with over 25,000 on its rolls with have five years to
carry out the task. Industry Minister Miguel Sebastián said that 30 million euros is available
to fund the scheme.