Measures on Electricity Introduced by Royal Decree-Law 17/2021, of 14 September, on Urgent Measures to Mitigate the Impact of the Rising Natural Gas Prices on Retail Gas and Electricity Markets

Sep 17, 2021 | Legal News, Legal News, Administrative and Regulatory Law, Energy

On 16 September 2021, Royal Decree-Law 17/2021, of 14 September, on urgent measures to mitigate the impact of the increase in natural gas prices on retail gas and electricity markets (“RDL 17/2021”) entered into force.

Among the measures introduced by RDL 17/2021, the following are summarised below for information purposes only, and are neither exhaustive nor detailed:

1. MINIMUM VITAL SUPPLY

A new Article 45 bis is introduced in Law 24/2013, of 26 December, on the Electricity Sector, regulating the minimum vital supply for vulnerable consumers. This consists of a supply guarantee limited to a maximum contracted power of 3.5 kW, for a period of six months following the four-month period provided for in Article 52.3 LSE, during which supply cannot be suspended due to non-payment.

The disconnection procedure may not be initiated until after these six months have elapsed.

For the application of the minimum vital supply, the retail company shall request its application from the distribution company. The reference retail company must send a written notification to the consumer within ten days of such request, informing them accordingly.

The content of the notification letters to be sent to clients under the non-payment procedure established in Royal Decree 897/2007 is amended.

2. MEASURES REGARDING THE IVPEE (Tax on the Value of Electricity Production)

  • The taxable base for the year 2021 is reduced: for fiscal year 2021, the taxable base of the IVPEE shall be constituted by the total amount to be received by the taxpayer for the production and incorporation into the electricity system of electricity, measured at the busbar, reduced by the revenues corresponding to the electricity incorporated into the system during the third and fourth calendar quarters.

  • The instalment payments for the third quarter shall be calculated based on the value of electricity produced at busbar during the tax period, reduced by the remuneration corresponding to the electricity incorporated during that quarter, applying the tax rate and deducting any previously made payments.

  • The instalment payments for the fourth quarter shall be calculated based on the value of electricity produced at busbar during the tax period, reduced by the remuneration corresponding to the electricity incorporated into the system during the third and fourth quarters, applying the tax rate and deducting any previously made payments.