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What it is

Bill to cut the tax on electricity production to zero

Admitted step 2 of 7 · Unfinished

It is a members’ bill. Introduced by parliamentary groups, the Senate, regional governments or citizens. It was introduced on 6 June 2019. Introduced by: Grupo Parlamentario Popular.

Official title: Private member's bill amending Law 15/2012, of December 27, on fiscal measures for energy sustainability, for the suppression of the tax on the value of the production of electrical energy.

Follow this law

Source: Congreso de los Diputados, file 122/000003· updated 11 Nov

Automatic summary, not yet reviewed

  1. The bill would set the tax rate on the value of electricity production at 0%. This tax is currently paid by all power generation facilities. The stated goal is to lower electricity bills.
  2. It would raise from 500 million to 2,000 million euros the maximum the electricity system can receive from auctions of greenhouse gas emission allowances, to offset the lower tax revenue.
  3. It would require adjusting, within three months, the compensation paid to facilities under the specific regime (renewables, cogeneration and waste), so the savings reach all consumers.
  4. It would require the National Markets and Competition Commission (Comisión Nacional de los Mercados y la Competencia) to issue an annual report on how the tax is passed through to electricity prices, sent to the Government before December 31 each year.

Who it affects

  • Electricity consumers: The bill aims to make their power bills cheaper.
  • Electricity producers: They would no longer pay the tax on the value of their production.
  • Renewable, cogeneration and waste facilities under the specific regime: Their compensation would be adjusted by the amount they stop paying in tax.
  • National Markets and Competition Commission: It would have to issue an annual report on the tax's impact on prices.
  • The Government: It would have to approve the implementing rules within three months.

Words worth knowing

Impuesto sobre el valor de la producción de la energía eléctrica
A tax paid by facilities that generate electricity, based on the value of what they produce.
Régimen primado / régimen económico específico
A system under which certain renewable, cogeneration and waste facilities receive regulated compensation from the electricity system.
Derechos de emisión de CO2
Allowances companies buy at auctions to be allowed to emit polluting gases; the revenue goes to the electricity system.
Mercado marginalista
The wholesale market where the price of electricity is set by the most expensive offer needed to meet demand.
Proposición de ley
A bill introduced by a parliamentary group to create or change a law; it is not a law until passed.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries

Where it stands

How far did it get?

It took 2 of 7 steps. It reached Admitted, and today it is unfinished.

  1. Introduced6 June 2019Someone registers the text in the Congreso.
  2. Admitted11 June 2019The Bureau of the Congreso accepts it and, for a members’ bill, the plenary decides whether to consider it.
  3. Amendmentsnot reachedGroups propose changes.
  4. Committeenot reachedA committee goes through the text in detail.
  5. Plenarynot reachedAll 350 deputies vote.
  6. Senatenot reachedThe Senate can pass it, amend it or veto it.
  7. BOEnot reachedIt is published in the Official State Gazette (BOE) and comes into force.
See the 6 official steps on a timeline
Jun 2019Jul 2019Aug 201911. 6 June 2019: Presentación22. 11 June 2019: Boletín Oficial de las Cortes Generales Publicación desde 11/06/2019 hasta 14/06/201933. 11 June 2019: Calificación44. 14 June 2019: Gobierno Contestación desde 14/06/2019 hasta 21/09/201955. 21 September 2019: Pleno Toma en consideración desde 21/09/2019 hasta 24/09/201966. 24 September 2019: Concluido - (Caducado) desde 24/09/2019 hasta 23/10/2019

Was there a plenary vote?

We have no plenary vote linked to this law in the Congreso’s data.

What happens next

What happens now?

The legislature ended before it finished. To go on, someone would have to introduce it again in the new Cortes.

It has not been presented again yet.

Presented before in:

Sources

Where does all this come from?

  • The data comes from the open files of the Congreso, the Senate and the BOE, unaltered.
  • Each deputy’s province is the one of their seat on the day of the vote.
  • We only say “passed” or “rejected” when the majority needed is certain; otherwise we say which side had more votes.

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