Bill to create a fund spreading renewable energy costs across all energy sources

Automatic summary, not yet reviewed

1. The bill would create the National Fund for the Sustainability of the Electricity System (FNSSE), a fund without legal personality that would finance policies promoting renewable energy, high-efficiency cogeneration and waste recovery, currently paid by electricity consumers through the charges on their power bills.
2. The fund would be managed by the Institute for the Diversification and Saving of Energy (IDAE) and attached to the Ministry for the Ecological Transition and the Demographic Challenge, with a Monitoring and Control Committee overseeing its use, approving its budget and drawing up its annual accounts.
3. Natural gas and electricity retailers, direct consumers of electricity and gas, wholesale operators of oil products and liquefied petroleum gases, and other consumers of these products would have to contribute to the fund. Contributions would be proportional to their energy sales or consumption, and rates would be set each year by ministerial order.
4. The bill provides exemptions for certain sales, such as kerosene, agricultural gas oil or fuels for navigation, and compensation for road freight transport, passenger transport, taxis, vehicle rental with driver, and industrial consumers at risk of carbon leakageCarbon leakage When an industry relocates to a country with less strict climate rules to avoid decarbonization costs..
5. It sets out a sanctions regime with very serious, serious and minor offenses, with fines of up to €60,000,000, which may not exceed 10% of the offender's turnover. Very serious offenses may also carry bans of up to three years.
6. The new system would apply gradually and linearly over 5 years from entry into force; at the end of that period, the fund would cover all the costs and the contribution from electricity charges would disappear. For 2022, a per-unit energy contribution would be set from the first full calendar quarter after approval of the relevant order.

Who it affects

• Electricity consumers: Would see the share of renewable costs they pay through power bill charges reduced, gradually over 5 years.
• Gas and electricity retailers, oil product and LPG operators, and direct consumers: Would make annual contributions to the fund, proportional to their energy sales or consumption.
• Road freight and passenger transport companies, taxis and vehicle rental with driver: Could receive compensation for gas oil costs, capped at 50,000 liters per vehicle per year, or 5,000 for taxis and rental with driver.
• Industrial consumers of electricity and gas at risk of carbon leakage: Would be entitled to compensation for the impact of contributions on their final prices.
• Small consumers on a regulated price: The Voluntary Price for the Small Consumer would be modified within six months to include the reference retailers' contribution to the fund.

Words worth knowing

RECORE

Specific remuneration regime covering more than 60,000 renewable, cogeneration and waste installations. Its costs are what the fund would finance.

Peajes y cargos (access tolls and charges)

The regulated parts of the Spanish power bill: tolls pay for transmission and distribution networks, and charges pay the rest of the electricity system's costs.

Carbon leakage

When an industry relocates to a country with less strict climate rules to avoid decarbonization costs.

Fondo sin personalidad jurídica (fund without legal personality)

Money with its own purpose and management, but not an independent entity: it is administered within a public body, here IDAE.

Caducidad del procedimiento (expiry of proceedings)

If the administration fails to decide within the deadline (18 months here), the case is closed and the proceedings end.

It summarizes the drafting committee report. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries