Last June the Government already approved a first package of measures designed to make consumers pay less on their electricity bill, but prices since then have not stopped rising, even reaching all-time highs in Spain, like the last day 10 when it reached the 152.32 euros per MWh.
Today, and in full price war among electricity companies, the Council of Ministers approves a extension of the tax cut until the end of the year and a reduction from 5% to 0.5% of the tax special electricity. In addition, it is intended to cap what are known as “benefits fallen from the sky” of large companies in favor of consumers.
Profits from the sky: one of the problems to tackle
The President of the Government, Pedro Sánchez, has assured that he will detract the extraordinary benefits of energy companies that “can afford it” to redirect them to consumers, cap the price of gas and reduce the electricity bill.
This is one of the measures that will be approved today by the Council of Ministers as a matter of urgency to put an end to the excessively high extraordinary profits registered by energy companies, which will allow 650 million euros are redirected to consumers and businesses (especially SMEs).
Regarding the receipt of electricity, we must remember that a distinction must be made between the evolution of the price of light in the international market (which is the one that has been increasing every day for weeks) and the amount of the electricity bill that consumers pay to companies each month.
In the first case, the president has assured “that no government can do anything”, but has affirmed that it is possible to intervene in aspects such as taxes so that citizens’ bills do not continue to grow exponentially.
Regarding the measure to cap the price of gas, which was already proposed by United We Can last July, it finally comes after an intense negotiation in the last hours between the Secretary of State for Energy, Sara Aagesen (number two of Ribera in Ecological Transition) and Yolanda Díaz’s chief of staff, Josep Vendrell. Ignacio Álvarez, Secretary of State for Social Rights, also participated in the talks.
There will also be a reduction in taxes
Tomorrow in the #CMIN we are going to detract the profits from energy companies and redirect profits to consumers, among other measures to reduce electricity bills. 💡
We are taking various measures.
– PSOE (@PSOE) September 13, 2021
In a recent interview with TVE, the president has defended that in the three years that he has been in office, he has already implemented other measures to alleviate the effects of the rise in electricity prices in the international market, such as “the commitment to renewable energy sources, the protection of vulnerable consumers and the reduction of some taxes ”.
Sánchez has reiterated that his commitment is “that consumers pay at the end of this year the same as they paid in 2018” (not counting the rise in the CPI), the year in which prices began to rise when Mariano Rajoy was in power and Sánchez was the leader of the opposition.
Thus, another of the measures that will be approved in the Council of Ministers is the reduction of the special tax on electricity from 5% to 0.5%. This is a substantial reduction before the impossibility of eliminating it, since it is harmonized. In addition, the generation tax freeze at 7%, at least until the end of the year.