Ribera admits VAT cut ‘doesn’t fix problem’ in electricity prices

Third Vice President and Minister for Ecological Transition, Theresa Riverawarned of the announcement by the president this Thursday State drop VAT 5 percent of the electricity bill “doesn’t fix the problem” high electricity prices. The landing proposed by Alberto Núñez Feijóo a few weeks ago was described as “cosmetic” by the then vice president. For a consumer whose monthly bill is about 60 Euros, it will mean a savings of about 2.7 Euros. “It is important to understand that fiscal measures will not solve the problem. What we need is comprehensive structural changes,” the vice president said at an informative breakfast organized by the New Economic Forum.

Although Ribera insisted that tax cuts would not be the solution, she acknowledged that this criterion change was due to a change in circumstances that required a reassessment of the measures. “It’s not possible to work just to reduce revenue and budget transfers. This has short-term effects and drains the capacity of the State to correct situations that need to respond. That’s why. necessary to work on the important part“The most important criticism of the right parties is that their only proposals are not aimed at transforming the model, but at transferring from the consumer to the taxpayer, and I think that this alone is not enough,” he said.

The Cabinet of Ministers will hold an extraordinary meeting on Saturday, June 25th to announce this VAT reduction, which has been reduced to the minimum allowed by Europe due to the war in Ukraine, as well as the approval of the second anti-crisis package due to the war in Ukraine. others specifically aimed at the most vulnerable consumers that they have a deployment “as agile and fast as possible”, such as the “strengthening” of electricity social bonds, a discount on the bill for low-income consumers who have a regulated rate (PVPC) contract. Normally between 25% and 40%, this discount will be extended as it has been extended from 60% to 70% until 30 June.

“Everything shows that high prices will remain over time,” the vice president assured, insisting on developing measures in the medium and long term as well. Regarding a new tax on energy companies, the vice president recalled that Spain has already cut the extra benefit from energy companies due to the rise in gas prices, and assured that it is in place for eight months, although he did not give figures on what the collection was. This reduction in benefits played an “important role in including a review of rates”. because they exempt all these contracts from the cutoff at a fixed price of less than 67 euros per megawatt hour, far from the current 200 euro MWh, and also with the Iberian mechanism scheme, which reduces the extra benefit companies will receive. Do not use gas in their production.

But the vice president acknowledged that “too cumbersome” figures were given in the presentation of the results by electricity, gas and oil companies, but warned that “very careful” is needed to prevent an explosion. The “badly thought out” design of this mechanism can be “transferred to consumers” and not “blocking” the investments of these companies. Although Ribera has not confirmed whether this tax increase will finally be included in the package of measures that will be approved this Saturday.

He also realized that a sector “systemic for the economy” such as electricity “cannot be seen as a sector that cannot be trusted by consumers”. Citizens should feel comfortable with companies that provide them with a core service, and there is clear room for improvement here,” he added.

Source: Informacion

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