The measures proposed by the Catalan Ombudsman to reduce the electricity bill by half

Pass the VAT from 21 to 10%, distribute in a fairer and more equitable way the charges not related to consumption and eliminate special taxes.

27/03/2019

Lavanguardia.com

The Síndic de Greuges de Catalunya, Rafael Ribó, has presented today in the Parliament a report in which he urges the State Government and the regional government to take the necessary legal and political measures to reduce the electricity bill by 50% in the Spanish homes.

The proposal includes concrete measures to achieve this reduction, such as bringing the VAT , which is now 21%, to a reduced rate , around 10%, similar to that applied by neighboring countries; distribute in a more fair and proportional way among the different types of consumers (domestic, industrial, services) the charges not related to consumer spending , to mitigate the impact they have on the domestic consumer; and eliminate “special” taxes such as electricity generation, which in April will be reflected again in the receipt of electricity – which could mean a further increase of 4% in the bill – after the six-month exemption decreed by the Government of Spain.

Currently, the concepts unrelated to the service contracted, such as the commitment to remunerate renewable energies and cogeneration or the tariff deficit, account for nearly 70% of the cost of the electricity bill, the Catalan Ombudsman has revealed.

The report, which today has been delivered to the Parliament, analyzes the three components that contribute, with a similar relative weight, in the final bill of the electricity bill : the electric power that is consumed properly; the access tolls that are used to pay the regulated costs of the system (transport and distribution of energy), and other expenses not related to the supply (which energy policies have affected consumers); and, finally, the taxes that the consumer supports (such as the electricity and VAT tax).

The Catalan Ombudsman considers that the three points can be influenced to reduce the cost of the receipt, but especially in the last two. The specific measures proposed are, in addition to the VAT reduction from 21 to 10%, promote competition in the energy market to avoid bad practices; reduce tax burdens that are no longer justified , such as the electric tax; and to suppress the payment for the rent of the electricity meter , since it considers that the consumer already pays for this service through the tolls as compensation for the distribution activity.

Although most of the measures and new regulations suggested by the Catalan Ombudsman’s report refer to State powers, Ribó has also requested the Government of the Generalitat to deploy Law 24/2015 with maximum speed. This regulation provides social services with a protocol to determine if a person or family is at risk of residential exclusion.