Government extends measures to cope with war in Ukraine

Royal Decree-Law 11/2022, of June 25, adopting and extending certain measures to respond to the economic and social consequences of the war in Ukraine, to address situations of social and economic vulnerability, and for the economic and social recovery of the island of La Palma.

Through this Royal Decree-Law, the Government intends to continue adopting measures to reduce energy prices, moderate inflation and support the most vulnerable groups; both extending those already provided for in Royal Decree-Law 6/2022, of March 29, and incorporating new ones; as well as extending the term of certain measures to address situations of social and economic vulnerability on the island of La Palma.

The regulation is structured around three chapters, thirty-one articles, six additional provisions, one transitory provision, one derogatory provision and six final provisions:

Chapter I extends certain measures adopted within the framework of the National Plan of response to the economic and social consequences of the war in Ukraine:

• Extraordinary and temporary rebate on the final price of certain energy products, and on the temporary non-tax public benefit to be provided by wholesale operators of petroleum products.
• Direct aid that will benefit the fishing and aquaculture sector.
• An extraordinary increase of 15% in the minimum living income benefit and in retirement and disability pensions, in their non-contributory modality.
• Extraordinary limitation on the annual update of the rent of housing leases.
• Extension of the measures to make natural gas supply contracts more flexible.
• Social bonus for domestic consumers of electric energy.
• Revisions to the price of the last resort natural gas tariff.

Chapter II includes measures related to transportation:

• Direct subsidies for urban and interurban land public transportation, including a 30% subsidy for all multi-trip tickets.
• Reduction of fares in Renfe's multi-journey tickets and in regular bus passenger transport concessions under the responsibility of the General State Administration.
• Mandatory that all invoices referring to road transport carried out between July 1 and December 31, 2022, must show a breakdown of the cost of the fuel necessary to carry out the transport.

Chapter III specifies other measures to address situations of social and economic vulnerability:

• Tax on the value of electric energy production.
• Guarantee of water and energy supply to consumers who meet the condition of vulnerable consumer.
• To extend until December 31, 2022 the reduction of the remuneration of the electric energy production activity of the production facilities of technologies that do not emit greenhouse gases.
• Extension in the application of the 0.5% tax rate of the Special Tax on Electricity.
• Application of the reduced VAT rate of 5% to the supply of electricity to favor the reduction of the final electricity bill for domestic consumers.
• A limitation on the maximum price, before taxes, of packaged liquefied petroleum gases (LPG).
• Direct aid for the gas-intensive industry.

The second section of Chapter III includes various measures to support the agricultural sector. The third section incorporates a series of labor and social measures:

• Extension, until December 31, 2022, of the temporary layoff plans linked to the temporary force majeure situation.
• Extension of the deferral of the payment of Social Security contributions provided for in various regulations.
• New period of six months from the date on which the competent Administration declares the end of the emergency for those affected to apply for aid for personal damages, housing, industrial, commercial and service establishments, local corporations, and individuals or legal entities.
• They extend until December 31, 2022 the suspension of eviction and launching procedures.
• Assistance to low-income and low net worth individuals who are salaried, self-employed or unemployed.