Saturday, January 22

The Government approves the extension of the tax reductions of the electricity bill

The Council of Ministers approved this Tuesday the extension of tax cuts to the electricity bill, in a package of energy-related measures that includes an extension of the deadlines for the expiration of permits for renewable plants that expired at Starting this week, a boost to the electric recharging infrastructures and self-consumption, and the endowment by the Ministry of Finance of 1,900 million euros to cover the ruling of the Supreme Court that annulled the hydraulic canon that the PP implemented and forced to return the proceeds to the electricity companies.

The price of electricity breaks another historical record and soars in the wholesale market to 360 euros / MWh

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The fourth vice president and minister for the Ecological Transition, Teresa Ribera, has recognized in the press conference after the Council of Ministers that the prospects of the electricity wholesale market, which this Wednesday will exceed 360 euros per megawatt for the first time in history hour (MWh) driven by the exponential rise in natural gas, “they are not particularly promising”, which justifies the extension advanced last week by the Minister of Finance, María Jesús Montero.

The tax cuts will have an impact that the spokesman minister, Isabel Rodríguez, has estimated at more than 2,000 million. The reduction of the VAT on electricity to 10% and the reduction of the Electricity Tax from 5.11% to 0.5%, the legal minimum, will run until April 30. The 7% generation tax paid by companies will remain suspended for now until March 31, and “will be covered so that there is no problem in the organization of the electricity system accounts but it will not be transferred to the consumer”, Ribera has pointed out.

The extension of discounts for the beneficiaries of the social bond (up to 70%) is also extended until April 2022. Likewise, the Government has approved flexibility measures for consumers of industrial gas, so that they can change their rate or They can suspend their contract (measure that has already been introduced in the confinement) until March 31, 2022.

Ribera has confirmed the proposal to end as of January with the reduction of charges (the regulated part of the bill set by the Government) of 96% approved in September, to “ensure the balance of the system”, although it is still ” provisional”. And he has underlined that the proposal supposes a cut of 30% “weighted throughout the year”, if compared with the whole of 2021.

Regarding electric vehicle recharging infrastructures, along with some measures that simplify the regulation for their authorization, new installation obligations will be included in service stations in the state road network. And it establishes the possibility of “accelerating the installation obligations” in facilities such as public car parks or shopping centers, which must have a charging point for every 40 places before 2023. In the case of State Administration buildings, they must have one for every 20 places. Municipalities are also empowered to discount taxes such as the IBI or the Tax on Economic Activities and Works for the installation of these infrastructures.

In terms of self-consumption, which according to Ribera will close the year with almost 3,000 MW installed, double than a year ago, the Government has given light to the roadmap to promote this energy solution and to facilitate collective self-consumption, it will be exempted of the obligation to present guarantees to the facilities of less than 100 kilowatts that want to pour their surpluses into the network. A sanctioning regime is also introduced to avoid “delays in processing” and “sometimes disincentive behavior on the part of distributors and marketers.”