By Chris King • 22 December 2021 • 2:28
The price of electricity in Spain and Portugal on Wednesday, March 30.
The Council of Ministers approved this Tuesday, December 21, the expansion of the current fiscal measures that are in force to “cushion the blow of the rise in electricity prices”. This action was announced by a government spokesperson in a press conference following the meeting of Congress.
As proposed by the Minister for Finance, the VAT reduction from 21 per cent to 10 per cent will remain in force for the next four months. That will also be the case with the reduction of the special electricity tax from 5.11 per cent to 0.5 per cent, the legal minimum.
This will be maintained by the Executive until April 31, 2022. As specified by Teresa Ribera, the Minister for Ecological Transition, the suspension of the 7 per cent generation tax paid by companies, will be extended until March 31, 2022. Discounts of between 60 and 70 per cent for beneficiaries of the social bond will also be maintained.
According to Teresa Ribera, the government is considering cutting the reduction in electricity system charges. Since last September, this had been reduced by 96 per cent in consumers’ energy bills.
Ms Ribera explained that the current proposal is “still provisional”, for the cut in charges to remain at 30 per cent throughout 2022. If this was the case then it would mean a reduction of around seven euros on each bill.
Along with these direct aid measures to curb the impact of the rise in energy prices, the Government has also approved the Self-Consumption Roadmap. This will promote this type of energy consumption that, according to Ribera, has increased two and a half times in the last year, as reported by lavanguardia.com.
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Originally from Wales, Chris spent years on the Costa del Sol before moving to the Algarve where he is a web reporter for The Euro Weekly News covering international and Spanish national news.
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