Bill to cut electricity bills by lowering taxes and costs

Automatic summary, not yet reviewed

1. The bill would cut the tax rate on the value of electricity production from 7% to 0%. According to the text, this could save consumers about 1,500 to 1,600 million euros a year.
2. So the savings reach bills, the compensation paid to installations with a specific pay scheme would be reduced by the amount they stop paying in tax, and any change in the tax rate must be passed on to pay parameters within three months at most.
3. The cap on the amount the electricity system receives from auctions of greenhouse gas emission allowances would rise to 2,000 million euros, to offset the lower tax revenue.
4. The bill would provide that, from January 1, 2021, the annual payments on the electricity system's debt, with interest and adjustments, be funded 100% from the State Budget for 2021, 2022 and 2023. This debt costs about 2,500 to 2,600 million euros a year.
5. It would also have the extra costs of generating electricity in the isolated systems of non-peninsular territories paid entirely from the State Budget, instead of half from bills as now. They cost about 700 to 800 million euros a year.
6. The Government would have three months to approve the necessary implementing rules, and the law would take effect the day after publication in the Official State Gazette, except measures affecting the budget, which would wait until the next budget year.

Who it affects

• All electricity consumers.: Lower electricity bills.
• Families and vulnerable consumers.: The text says they would benefit most from the bill reduction.
• Electricity producers.: They would stop paying the tax on the value of electricity production, though installations with a specific pay scheme would see their compensation reduced.
• Industry.: The bill aims to increase its competitiveness by lowering electricity costs.
• The State Budget.: It would take on new payments: the electricity system's debt and the extra costs of non-peninsular territories.

Words worth knowing

Impuesto sobre el valor de la producción eléctrica

A tax paid by electricity producers on the energy they feed into the grid.

Régimen retributivo específico

A scheme under which certain installations, such as renewables, receive regulated compensation for generating electricity.

Deuda del sistema eléctrico

Money owed by the electricity sector, paid through an annual charge included in bills.

Extracostes

Extra costs of generating electricity in non-peninsular territories, such as the islands, where the system is more expensive.

Derechos de emisión de CO2

Allowances companies must buy for polluting; their auctions bring revenue to the State.

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