January 28, 2021

The government eliminates the sun tax and approves a social bond for heating

The government eliminates the sun tax and approves a social bond for heating


The Government has decided to suspend for six months, coinciding with the months of greatest electricity demand, taxes on the value of the production of electric power, of 7%, and hydrocarbons for electricity production, in order to lower the price of the receipt of light.

The Minister for Ecological Transition, Teresa Ribera, today presented the Royal Decree-Law of urgent measures to combat energy poverty.

According to the minister, the temporary elimination of These taxes will have an impact of 4% on the bill of domestic consumers.

The royal decree-law approved by the Council of Ministers includes measures against energy poverty that repeals the charge imposed on self-consumers for the energy generated and consumed in the facility itself, which has come to be known as 'sun tax' .

The Government has decided to eliminate, in addition, other barriers that, in its opinion, made it difficult and discouraged the implementation of electric self-consumption in Spain.

Among the measures outlined by the Minister for the Ecological Transition, Teresa Ribera, at the press conference following the Council of Ministers, are the simplification of bureaucratic and technical procedures for self-consumption facilities and the elimination of the obligation that those not exceeding 100 kilowatts (KW) be registered in the administrative register of electricity production facilities.

It also recognizes the right to self-consumption shared by one or several consumers, which will allow economies of scale to be exploited, as well as the right to self-consume electricity without tolls or charges.

The minister has said that the suppression of the 'sun tax' gives her special satisfaction, because "finally this country is free of the great absurdity that international experts have mocked."

In Spain, the electrical power registered in self-consumption facilities amounts to 1,196 megawatts (MW), of which 170 MW correspond to installations of renewable energy sources, and there is barely more than a thousand self-consumers, compared to more than one million that exists in Germany.

Within self-consumption with renewables, the contributions corresponding to the energy use of biogas (127 MW) and photovoltaic solar energy (28 MW) stand out.

SOCIAL SOCIAL BONUS

Likewise, the Executive will launch a social thermal bond, which will be a direct aid for vulnerable households to cope with their heating, hot water or kitchen expenses this winter, regardless of the fuel they use.

The households that are covered by the electric social bond as of December 31, 2018 and any consumer who meets the conditions to access the electric social bond and has submitted their application before said date will receive the electric and heating bond.

The amount that the beneficiaries of the thermal bonus will receive will depend on the amount that is allocated each year in the General State Budgets and the number of beneficiaries of the electric social bond on December 31.

The amount of the aid will depend on the condition of severe vulnerable or vulnerable consumer, and of the climatic zone where the location in which the beneficiary's residence is located is located.

For example, if there is a budget of 100 million euros and the number of beneficiaries of the electric bond is 1.5 million at December 31, the amounts of the bonus would range from a minimum of 25 euros for a vulnerable consumer in the warm zone and a maximum of 130 euros for a vulnerable vulnerable consumer in a very cold area.

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