Royal Decree-Law 17/2021, of September 14, on urgent measures to mitigate the impact of the increase in natural gas prices in the retail gas and electricity markets.
This Royal Decree-Law, approved by the Council of Ministers and published in the BOE, aims to keep consumers' final electricity bill this 2021 at the same level as in 2018. The regulation combines general measures with specific measures of greater impact on vulnerable consumers, families, SMEs and the industrial fabric, as well as the environment and territories close to large reservoirs.
Among the temporary decisions adopted, those of a fiscal nature stand out:
- To extend until the end of the year the suspension of the Tax on the Sale of Electric Energy Production (IVPEE), which levies a 7% tax on generation.
- Reduce from 5.1% to 0.5% the rate of the Special Tax on Electricity (IEE) -the minimum allowed by EU regulations-.
- Expand the amount raised from European CO2 auctions to cover electricity system charges from the 1.1 billion budgeted for 2021 to 2 billion.
Likewise, the temporary reduction of the excess remuneration obtained by non-emitting power generation plants in the wholesale market has been approved. A formula similar to the one used to reduce the carbon dividend of non-emitting plants is applied.
This shock plan has an immediate impact on consumers' bills, either because of the tax reduction or because both the income from CO2 auctions and the gas reduction reduce the charges to be included in the tariffs. The applicable charges will be 96% lower than at present. This makes it possible to reduce the regulated part of consumers' final bills in a range from 47.2% for households to 24.5% for large industry. In addition, the lower tax burden will be applied to this reduction.
Also to face the situation of the coming months, the impact of the cost of the raw material in the calculation of the three bands of the last resort natural gas tariff (TUR) will be limited for a six-month period, so that the average increase in the next quarterly review, on October 1, will be 4.6%, instead of 29%. The amounts due will be passed on in the following reviews, with a damping mechanism similar to the existing one for butane cylinders.
In addition, other measures have been adopted with a view to permanence, such as a new minimum vital supply that extends the ban on cutting off electricity service to vulnerable consumers for six months in addition to the existing four - ten in total - during which time a minimum comfort supply will be guaranteed.
In order to increase the liquidity of the forward markets, auctions of power purchase contracts will be called. Dominant business groups will offer electricity in proportion to their share, and independent marketers, as well as large consumers, will be able to purchase it and sign forward contracts with them with a settlement period of one year or more.
The regulation also provides for the reform of the regulated tariff - the voluntary price for small consumers (PVPC) - to incorporate the auction price reference with a maximum weighting of 10%. Free marketers that purchase energy in this way will have to indicate this on their customers' bills.
On the other hand, the Water Law is modified to avoid sudden releases. Thus, at the beginning of each hydrological year, the hydrographic confederations will establish a minimum and maximum regime of monthly flows to be released in reservoirs larger than 50 Hm3, both for situations of hydrological normality and prolonged drought, as well as a regime of minimum volumes of reservoirs for each month.
In addition, Royal Decree-Law 5/2021 on extraordinary measures to support business solvency in response to the COVID-19 pandemic has been amended, extending the time scope covered by direct aid for the self-employed and companies.
In this sense, the period for the aid coverage is extended by four months, from May 31 to September 30. Thus, this finalist aid may be used for the payment of debts and fixed costs assumed by the companies from March 2020 to September 30, 2021.
In addition, the Royal Decree-Law clarifies that, within the purposes for which the aid may be used, the concept of fixed costs incurred includes accounting losses generated during the coverage period. Thus, the self-employed and companies may use the aid to satisfy debts and make payments to suppliers and other financial and non-financial creditors, as well as to offset the fixed costs incurred, including accounting losses, provided that they have been generated within the established period and come from contracts prior to March 13, 2021 (date of entry into force of Royal Decree-Law 5/2021).
These modifications will allow the autonomous communities that still have part of the allocated resources available to make new calls for aid during the remainder of the year.
This Royal Decree-Law will enter into force on the day following its publication in the BOE.
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