Thursday, October 28

Teresa Ribera opens the door to tax cuts on the electricity bill to lower its price


MADRID

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The fourth vice president and minister for the Ecological Transition and the Demographic Challenge, Teresa Ribera, had to respond today in Congress to the question of the popular about the rise in electricity prices, which today record new highs and reach prices of up to € 0.25574 per kilowatt hour (kWh). And it has done so by ensuring that the Government does not rule out adopting “provisional tax measures” to reduce the cost of electricity until the energy tax reform is fully addressed.

Ribera thus opens the door to the suspension of the Tax on Electricity Generation, which adds 7% to the cost of electricity, and which was already canceled during several months between 2018 and 2019. “We have already done it and we can do it again immediately,” said the vice president. Ribera has also announced that it is working with the Treasury and Industry to raise the compensation of CO2 costs for industrial sectors by 100 million euros. “We are extremely concerned about the evolution of the price of electricity and the forecasts of the price of gas and CO2 and their impact on the receipt of families, industry and SMEs,” added the minister.

Disastrous consequences

The words of the minister have not been enough for the deputy of the PP Guillermo Mariscal, who reproached Ribera that since he occupies the position in the Government until last June 1, electricity rose by 44% and that with the new rate there are hourly sections in which electricity has become more expensive by 73%. “It is a reform that has brought disastrous and unfortunate consequences for families and the Spanish economy,” said Mariscal, who also recalled how “today at 8:00 pm the Spanish will pay for the most expensive electricity in history.”

The popular demand the abolition of the generation tax, not only the temporary suspension, transfer the interests of the tariff deficit caused by the bubble of renewables to the Budgets and that the accounts also assume the extra-peninsular generation costs that now fatten the tariff.

This extreme was rejected by Ribera, “because he pays the same and continues to benefit himself”. “The cost of polluting must be paid by those who pollute and the families should not pay it unfortunately, financing the enormous benefits generated by clean energy,” defended Ribera, who stressed that said measure, together with the launch of the National Fund for Sustainability of the Electric System will allow a reduction in the bill of more than 15%.

Oligopoly and revolving doors

The rise in the price of electricity has also marked the face to face between the number two of the PP, Teodoro García Egea, and the third vice president and Minister of Labor, Yolanda Díaz. The Minister of Podemos has defended herself from the attacks launched by García Egea and which questioned the effectiveness of her “social shield”, marking distance with this sector. “They will never see me in an electricity company,” he defended himself, also criticizing that “in this, the PP are experts.”

In his opinion, the situation we are currently experiencing responds to “two problems”: “the oligopoly” in the electricity sector and “revolving doors”. Faced with the criticism of García Egea, who has accused the Government of being “the most expensive in history”, Díaz has acknowledged that “it is a very serious problem for millions of families” and that “the Government is committed to making it cheaper.” He has only mentioned, however, the cut of the so-called ‘benefits fallen from the sky’, while he has ignored the proposal of United We Can to start up a state power company, a project for which he is already working on its regulation.

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