THE European Commission has authorised a Spanish aid programme which aims to encourage people in the Castilla-Leon region to buy new electric or hybrid-powered cars or vans.

It is now offering financial support to help fund the extra cost of buying such a vehicle.

The aid, worth 1 million euro, will be offered from now until 2006 and is part of an initiative to protect the environment by supporting 'rational energy use' and lower-pollution transport.

Cash beneficiaries will include small to medium-sized companies, self-employed workers in farming, individuals, local bodies and non-profitmaking associations or bodies with registered offices, agencies, branches or subsidiaries in Castilla-Leon.