Spain to Cap Windfall Energy Profits as Rally Hits Inflation

Spain will slap a windfall tax on power utilities and cap consumers’ energy bills as the government seeks to ease the impact of surging inflation from Europe’s power crunch.

A global shortage of natural gas has pushed the region’s fuel, electricity and carbon prices higher than they’ve ever been. Spain is particularly vulnerable, because a big chunk of its power is generated by burning the fuel and power links with other European nations are limited. Day-ahead power reached a record for Monday.

“There are power companies that are currently recording extraordinary profits, and I don’t think that that is acceptable ...