The Government puts an end to the “sun tax”.

IIDMA welcomes the decision to abolish the Spanish “sun tax”, a successful measure of the Ministry of Ecological Transition to an obstacle that slowed the fight against climate change. The minister Teresa Ribera has announced at a press conference the innovations agreed through the Royal Decree Law on Urgent Measures for the Just Energy Transition and Consumer Protection, given the situation of rising electricity prices and energy poverty in the Council of Ministers on Friday October 5, 2018.

This Royal Decree Law ends the brakes imposed on self-consumption and ends the so-called “sun tax”. In addition, the minister has announced other temporary measureto save up to 4% on the electricity bill over the next 6 months, according to the Ministry. On the one hand, it suspends the Value Tax on the Production of Electrical Energy approved in 2012 of 7% to electricity generation for six months. Likewise, an exemption is introduced in the Special Tax on Hydrocarbons for electricity production or cogeneration, also known as “green cent”.

In addition to the annulment of the obstacles to self-consumption, the measures seek administrative simplification for the implementation of this type of facilities. This good news reinforces Spain’s fight against climate change and is in line with UN Sustainable Development Goals (SDS) 3, 7, 11 and 13:

ODS 3: Health and well-being.

ODS 7: Affordable and non-polluting energy.

DSO 11: Sustainable cities and communities.

DSO 13: Climate Action.

This series of measures established in the new Royal Decree Law joins the provisions of measures favorable to the objectives of the Paris Agreement that may bring the future Law on Climate Change and Energy Transition. The Ministry has announced the draft law before the end of the year, together with the integrated energy and climate plan and a just transition plan.



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