The freeze will apply to the seven million residential customers with fixed-price contracts in Spain | Reuters

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Spanish utility Iberdrola said late on Tuesday it froze the prices it charges for gas and electricity to residential customers in Spain to shield them from the hike triggered by the Russian invasion of Ukraine.

"Iberdrola commits to maintain its fees despite the influence of the war on gas and electricity costs," the company said in a statement.

The freeze will apply to the seven million residential customers with fixed-price contracts in Spain, the statement said. Iberdrola also said it will keep prices to industrial customers unchanged and is offering prices below the spot market on new contracts.

Iberdrola, which generates power at renewable and gas-fired plants and distributes gas and electricity, had already kept most prices fixed last year as the costs of gas and power soared everywhere last year as the ripple effects of COVID played havoc with supply and demand.

Even though it kept its prices fixed as wholesale prices soared, Iberdrola's net profit in 2021 surpassed an analyst estimate, the company said last month.