25
Sep

ENERGY SECTOR FISCAL REFORM: MORE LITIGATION EXPECTED?

Escrito el 25 septiembre 2012 por Antonio Rivela Rodríguez en General

On September 14th, the Spanish Government sent to the Parliament a draft proposal on Energy Taxation to fight the problem of the “tariff deficit” and put the Spanish energy system back into an economically sustainable path.

In my opinion, these tax driven measures are just another “trial and error” fix towards the tariff deficit reduction but do not address the structural problem. Renewable firms will not be able to pass the 6% to retail consumers but ordinary players (Endesa, Iberdrola, etc.) surely will.

According to Jaime Margareto at the forensic firm, Netvalue Forensic,  “As energy forensic experts, We are not expecting many local lawsuits or international arbitration related to this matter as taxes are consistent through all technologies, which is a very different situation as RDL14/2010 and RD 1565/2010 when most of the burden was suffered by the Photovoltaic sector”.

With this important environmental fiscal reform, the Government undertakes decisive action to permanently fix the economic imbalances that in the past created uncertainties over the stability of the Spanish electricity system and establishes clear incentives for future low carbon investment in the Spanish energy sector, thus restoring long term investor certainty and visibility.

The solution to the problem of the electricity system requires the adoption of a number of measures, which will ensure the sustainability of the system. It will imply a fair burden-sharing between power generators (both conventional and renewable producers), consumers and the public sector.

SINCE THE BEGINNING OF 2012, THE GOVERNMENT HAS TAKEN IMPORTANT STEPS TO ADDRESS KEY ASPECTS OF THE PROBLEM:

 Excess generation capacity in the system, recommended to make a halt on the growth of renewable subsidies and the Royal Decree-Law 1/2012 suspended temporarily all new renewable capacity registration.

 Royal Decree-Law 13/2012 reduced system costs up to 1,091 m€ (in transport and distribution of electric power, in capacity payments, in coal subsidies, in system operation and payments to interruptible customers) while increased system revenues in 673 m€ (from IDAE and CNE budget surpluses).

 Increase in electricity bills as from 1 April 2012 to all customers of 5,1% on average resulting in a revenue increase for the system of 1,380 m€. In particular, by Ministerial Order IET/843/2012 electricity tariffs increased by:
o Households/residential (TUR): 7.0% o Large residential and SMEs: 4.1% o Medium sized industrial: 2.8% o Large sized industrial: 0.9%
 Further system cost reductions of 150 m€ in 2012 (in transport and in the extracost of supplying small and isolated systems outside the peninsula) and revenue increase for 2013 (from regional taxes and additional access charges for higher consumption levels) by Royal Decree-Law 20/2012 which will contribute to deficit reduction in 2013 by 630 M €.

 

THE RECENT ANNOUNCED FISCAL REFORM PROPOSES THE FOLLOWING MEASURES:

1. Tax on nuclear waste (10% of revenues).

2. Levy on hydro generation (22% of revenues).

3. Carbon tax on fossil fuels:

o Natural gas (2.79 cent€/m3). o Coal for power generation (14.97 €/ton). o Fuel for power generation (12.00 €/ton). o Diesel for power generation (29.15 €/1000l).

o Tax on electricity production, with a single tax rate (6%) on all power generation regardless whether it is produced under the so-called Ordinary (conventional plants) or Special Regime (renewable and CHP power plants)

Source: Ministerio de Economía y Competitividad

 

 

 

 

 

 

Comentarios

Aún no hay comentarios.

Dejar un Comentario

*

Utilizamos cookies propias y de terceros para mejorar nuestros servicios y mostrarle contenido relacionado con sus preferencias mediante el análisis de sus hábitos de navegación. Si continua navegando, consideramos que acepta su uso. Puede cambiar la configuración u obtener más información aquí. Aceptar