June 12, 2021

Brussels warns that the Spanish special tax on household electricity consumption “is well above the EU minimum”


Spain applies taxes on electricity above the European minimum and, if it wanted, could even apply a reduced rate to electricity in homes. These are the conclusions of a response from the European Commission to questions from MEP Toni Comín (Junts) about the price of energy in Spain.

The question recalled that “coinciding with a cold wave and in the midst of the pandemic, the wholesale market price of energy in Spain reached 121.24 EUR / MWh on January 9, 2021, the highest in the European Union and the second highest average daily value since 2002. This increase affects 40% of consumers in Spain “.

Comín explained that “this price increase coincides with a peak in demand associated with the commissioning of a combined cycle gas plant, which generates more expensive energy than renewable sources,” he recalled that “the consumer association FACUA requests the Spanish Government to reduce indirect taxes on household energy consumption, which represent 27% of each bill “, and asked:” Is the Commission against a reduction in the tax on household electricity consumption ? ”



In its response, the Community Executive states: “The Spanish special tax on household electricity consumption is well above the EU minimum established by the directive on energy taxation. Regarding the value added tax ( VAT), Spain may apply a reduced tax rate to electricity supplied to households “.



Brussels further states that “the best way to keep all consumers’ electricity bills low is to ensure that the overall system design is efficient and that there are key safeguards for consumers.” And he adds: “Member States are free to determine their energy mix in accordance with the Treaty on the Functioning of the European Union. Spain is about to reach its renewable energy target for 2020, set at 20% nationally, of compliance with the directive on renewable energy sources. It closed 2019 with a share of renewable energy sources of 18.36%. In the final version of its National Energy and Climate Plan, Spain announced that its share of energy from renewable sources in gross final consumption it would be 42% by 2030, which was described as a ‘sufficiently ambitious’ target, as it exceeded the EU target of 32% “.

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