Gas industry seeks cuts in taxes to drive prices amid Russia crisis

Collaborations that bring together the entire gas industry (transport and distribution network groups as well as marketers) as well as major industrial gas consumers, To pressure the government and get a reduction in taxes included in the gas bill. As published by El Periódico de España on Tuesday, the gas industry does not understand the differential treatment and criticizes the Government’s stance as a missed opportunity.

“We regret that in Spain all the tools that Brussels has allowed, especially the review of taxation, have not been implemented to mitigate the impact of price increases on vulnerable consumers,” he said. Joan Batalla, president of the Sedigás employers association, at the meeting with the press on the occasion of the 48th Annual Meeting of the business association. “The revision of the VAT and Special Tax on Hydrocarbons is a timely measure to reduce the impact on sensitive consumers.”

In recent months, the gas industry has condemned discriminatory treatment and claimed repeated tax cuts on the electricity bill (which will remain in effect until at least 30 June and the Government is open to re-extension) for natural gas. Companies in the gas sector are asking VAT reduction on gas consumption from current 21% to 10% (as already with light and water) and also a Reduction of the Special Hydrocarbon Tax taxUp to the minimum level allowed by the European Union.

gas stop

Manager approves VAT reduction from 21% to 10% on electricity bills since June last year, suspend the 7% tax on electricity generation and reduce the minimum electricity special tax allowed by Brussels from 5.1% to 0.5%. The government took direct measures through taxes to soften the impact of the rise in electricity prices in international markets on the receivables of all electricity customers, mainly as a result of the increase in natural gas prices.

The government has approved a plan to cap the price of gas used to generate electricity, thereby limiting increases in electricity bills for millions of homes and businesses. Placing a maximum price on gas used to generate electricity (48.8 euros per MWh on average for a year compared to 80 euros in recent months) would lower the price of the electricity market as a whole.

“Any intervention in the markets must be done with great care,” warned the head of SedigásBringing together large companies from the entire gas industry’s value chain (transport, distribution, marketing and industry-specific suppliers of products and services) . “The application of the upper limit of safety should be done in a way that fully guarantees the recognition of the actual costs incurred by the combined cycle power plants. This is not an aid or subsidy. It’s just about balancing the actual costs.”

Delayed gas increase

The government has done Cap on any increases that can be applied to regulated gas rates (table of last resort, known as TUR). A measure only for regulated rate customers, not for those in the free market. The price of the rate, which is reviewed every three months, cannot exceed 5 percent, although the very strong increase in gas prices in the wholesale markets indicates much higher increases (the increase implemented in the last quarter of this year cannot exceed 5 percent). 4.6%, but should have been 29%).

about it is both a temporary measure and does not prevent interest rate increases, only postpones them. And the Government should start implementing the hikes, which are not being implemented gradually now, on a deferred basis from next April. Late upload, delayed. They also complain from Sedigás that it has not yet been determined how to implement the mechanism to recover the increments not applied to millions of customers.