Ribera debates special tax on power companies in budget

Ribera debates special tax on power companies in budget

“Everything is in its time,” said the third vice president and minister of ecological transition

The government’s third vice-president and minister of ecological transition and population challenges, Teresa Ribera, assured that the establishment of an “extra” tax regime for electricity companies and a “special” tax regime for gas and oil must be discussed in the budget area.

“When is it appropriate to discuss this? Probably in the context of budget legislation, just as extraordinary measures should be discussed in the context of decrees that we have been approving to protect families and industry. So, everything has its own time”, the Deputy president said in a statement to TVE.

When asked about the demands of some members of the government, such as those of the Second Vice President and Minister of Labor, Yolanda Díaz, Ribera responded that in the implementation of the plan, a special tax was imposed on electricity companies in the anti-crisis decree. Extended to September 30. In fact, Diaz assured yesterday that he is negotiating with the PSOE about the possibility of this special tax and subsidizing public transport.

​Suggestions’ thought out and worked’
On the other hand, the third vice-president believes that this debate should be held within the budget and in a “thoughtful and well-worked” manner with the rest of the government’s economic team, especially with the Minister of Finance and Economic Affairs Maria Jesus Montero and Nadia Calvinho respectively.

Ribera recalls that power companies currently have “several very important constraints” that have been applied to protect consumers: on the one hand, reducing the so-called “benefit from the sky” and, on the other hand, the price of electricity from natural gas.

Entry into force of the “Iberian exception”
Precisely, on the question of capping gas prices at a maximum of 40 euros, the VP recalled that from tomorrow, June 15th, the wholesale market will observe lower prices and consumers will see on their electricity bills to July. According to the vice president, for an average bill of 100 euros, capping gas prices would mean about 15 euros less in revenue.

Ribera explained that while the government wants power companies to continue to be profitable, they understand that the current situation is special and “they have no choice” but to accept this restriction on gas prices, with the support of the European Commission. The application deadline for Spain and Portugal is 31 May 2023.

In that sense, when asked if he would consider asking for an extension of this Iberian mechanism beyond that date, Ribera assured that, in principle, Spain “will abide by its commitments with Brussels”. Furthermore, he explained that the fact that it is valid for 12 months will allow one to face future “turbulent” months in demand for electricity: summer, due to air conditioning, and winter, due to heating.

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