As of 09/16/2021, a series of measures come into force to reduce the amount of electricity purchase bills.
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As of 09/16/2021, a series of measures come into force to reduce the amount of electricity purchase bills.
17/09/2021The impact of the increase in natural gas prices in the European markets experienced in 2021, which the Government of Spain quantifies at more than 250% since last February, has been fully transferred to the price of electricity in the wholesale market. In view of the alarm generated in broad sectors of society and the industrial world, the Government has approved Royal Decree-Law 17/2021, of September 14, which is intended to mitigate the rise in natural gas and electricity prices in retail markets. In addition, a series of measures are introduced to rationalize the use of water for electricity generation.
The main aspects to highlight of the Royal Decree-Law are the following:
- Creation of the vital minimum supply for vulnerable consumers.
- Suspension until the end of the year of the Tax on the Value of Electric Power Production, which levies 7% on generation.
- Promotion of forward contracting of electricity, through auctions in which sellers will be the dominant operators in the market. The first auction will be held before 12/31/2021, having this measure vocation of permanence.
- Establishment of a temporary mechanism for reducing the excess of remuneration to electricity production facilities that do not emit greenhouse gases, which are located on the peninsula, greater than 10 MW and that are not covered by the Specific Remuneration Regime.
- Approval of sustainability criteria in the management of reservoirs for hydroelectric production.
- Reduction of the Special Tax on Electricity to 0.5% and expansion of the amount collected with the European CO2 auctions, in order to cover charges for the electricity system (from the 1,100 million budgeted for 2021 to 2,000 million).
- Reduction in electricity system charges that consumers pay on the electricity bill.
- Limitation of the impact of the cost of the raw material in the calculation of the Last Resort Rate for natural gas.
These measures join those already approved in June by Royal Decree-Law 12/2021.
You can consult the full legal text at the following link:
https://www.boe.es/diario_boe/txt.php?id=BOE-A-2021-14974