The Basque Government proposes to eliminate the taxes related to the production and generation of energy

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Economy

ELECTRICITY BILL

ANE SANTESTEBAN | EITB MEDIA

According to the Minister of Economic Development of the Basque Government, excluding these rates from the electricity bill could mean savings of between 40 and 45% for companies.

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The Minister of Economic Development, Sustainability and the Environment, Arantxa Tapia, has proposed to the Spanish Government eliminate fees related to energy production and generation that are paid in the electricity rate, which would mean a savings of between 40 and 45% for the companies.

Tapia has appeared after the meeting of the Basque Government Council to express concern about the consequences in the industry of the increase in the cost of energy that has already caused the Basque steel company Sidenor to stop production at its main plant in Basauri (Bizkaia) in a intermittent until Christmas.

According to the company, in the last year the price has increased by more than 300%, going from 60 euros per megawatt hour to 260 euros, which “causes losses and makes it impossible to maintain the current rate of production.”

During the press conference, Tapia highlighted the need to take action to face the problems that the rising cost of electricity is causing industry and families in Europe, Spain and the Basque Country.

In this sense, he has advanced that the Basque Government is preparing a technical report which will be made available to the European Commission and the Government of Spain next Monday.

It would be about temporarily remove and / or postpone the rates included in the electricity bill, such as the premiums for renewables, non-peninsular extra costs and the annual rate deficit that would be assumed directly by the State.

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Although the most benefited by this measure would be the companies with the highest electricity costs, he also believes that consider withdrawing these fees from domestic consumers.

Tapia considers that the price of energy should not be associated with the price of the day, but should be linked to a more stable cost, for example, an annual rate. During the press conference, He recalled that the demand for gas is greater than the supply and, therefore, he believes that “a harsh winter may come“.

The Spanish Government will decide in November or December if the fiscal measures against the rise in electricity remain

The Minister of Finance and Public Function, Maria Jesus Montero, has remarked that the General State Budgets (PGE) of 2022 have sufficient “slack”, both in the part of income and expenses, in case it were necessary to extend the fiscal measures adopted this year to alleviate the impact of the rise in energy prices, a decision that will not be adopted until “November or December”.

The head of the Treasury explained during the presentation of the public accounts for 2022 before the Congress of Deputies that on that date the Government will decide whether the measures remain or not and how long they will do so in case it is advocated to extend them, although the The minister hopes that reforms will be adopted in Europe first that can alleviate the impact that affects all countries.



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George Holan

George Holan is chief editor at Plainsmen Post and has articles published in many notable publications in the last decade.

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