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Urgent measures for the energy transition and the protection of consumers

29 October 2018

On Thursday, October 18th, 2018, Royal Decree Act 15/2018, of October 5th, on urgent measures for energy transition and consumer protection was approved by Parliament, with 178 votes in favor, 160 abstentions and 2 votes. against.

Through this decree, the government intends to stop the increase in energy prices, triggered in recent times, and motivated, according to the text itself, by the international prices of fuels and greenhouse gas emission rights(GHG).

Measures to protect consumers in situations of vulnerability and measures against energy poverty are proposed (social bonus, social thermal bonus, supplies uninterruptible for non-payment, among others). The so-called "sun tax" on self-consumption is also repealed.

Given that some of these aspects had already been reviewed in recent articles (22/05/2018 "self-consumption"; 8/10/2018: "Let's talk about Renewables") the last one in relation to the appearance that Teresa Ribera, Minister of Energy, made in the Congress (09/19/2018), we would like here to focus our attention on the aspects that, with the approval (10/18/2018) of this Royal Decree-Law, can refer, more specifically, to the measures concerned to renewables (solar energies).

Source: Self made 

We cannot fail to mention here the work of Ana I. Mendoza Losana, Professor of Civil Law at the University of Castilla-La Mancha, entitled "Measures of Royal Decree Law 15/2018, October 5th, related to renewable energy production facilities" which has served as a guide and index, basically in the enumeration of items, for the development of the continuation of ours, sustained in a careful reading of the BOE, when a marked confluence of the thematic interest takes place.

INTEREST OF THE ROYAL DECREE-LAW FOR THE FIELD OF THE RENEWABLE. 

EXCEPTIONAL EXTENSION.

BOE 97434 p. * Modification of transitory provision eight of Act 24/2013, of December 26th.

“An exceptional and one-time extension is granted for the access and connection permits granted prior to the entry into force of this Act 24/2013, in whose absence they would expire on December 31st, 2018. Through this extension, the entry into operation of the 9,000 MW of power awarded in the last renewable auctions will be made possible in 2020, avoiding a new application, processing and concession that, for sure, would prevent reaching the 20% objective of renewable final energy in that year”.

REDUCTION / SUSPENSION OF THE TAX

BOE 97435 p. * Measures related to tax regulation, with the main target of moderating the evolution of prices in the wholesale electricity market.

Exonerate from the Tax on the value of electric power production, electricity produced and incorporated into the electricity system for six months, coinciding with the months with higher demand and prices in wholesale electricity markets, in line with the ultimate goal pursued by this standard. This involves modifying the calculation of the taxable base and the instalments payments regulated in the tax regulation.

An extension is introduced in the Hydrocarbons special Tax to disable the "green cent".

This is regulated by the Sixth and Seventh Additional Provisions of this Royal Decree BOE 97461 p.

Sixth additional provision. Determination of the taxable base and the amount of the instalment payments of the Tax on the value of the production of electric energy during the financial year 2018.

The latter is regulated from the Sixth and Seventh Additional Provisions of this Royal Decree * BOE 97461 p.

Sixth additional provision. Determination of the taxable base and the amount of the instalment payments of the Tax on the value of the production of electric energy during the financial year 2018.

For fiscal year 2018, the taxable base of the Tax on the value of electricity production will be constituted by the total amount that corresponds to the taxpayer for the production and incorporation to the electric power system, measured in busbars, for each installation in the tax period reduced in the payments corresponding the electricity incorporated to the system during the last natural term.

The fractional payments of the last term will be calculated based on the value of the production of electric energy in busbars carried out during the tax period reduced in the payments corresponding to the electricity incorporated to the system during the last natural term, applying the tax rate provided in Article 8 of Act 15/2012, of December 27th, on fiscal measures for energy sustainability and deducting the amount of the instalment payments previously made.

Seventh additional provision. Determination of the tax base and the amount of the instalment payments of the Tax on the value of the production of electric energy during the 2019 fiscal year.

For fiscal year 2019, the taxable base for the tax on the value of electricity production will be constituted by the total amount that corresponds to the taxpayer for the production and incorporation of the electric power system, measured in busbars, for each installation in the tax period reduced in the payments corresponding to the electricity incorporated to the system during the first natural term.

Instalment payments will be calculated based on the value of the production of electricity in busbars from the beginning of the tax period until the end of the three, six, nine or twelve months referred to in the previous section, reduced by the amount of the remuneration corresponding to the electricity incorporated to the system during the first natural term, applying the tax rate established in article 8 of Act 15/2012, of December 27th, of fiscal measures for energy sustainability and deducting the amount of the payments previously made fractions.

REVISION OF COMPENSATION PARAMETERS.

BOE 97461p. * Modification of Act 15/2012, of December 27th, of fiscal measures for energy sustainability and of the modification of Act 38/1992, of December 28th, on Special Taxes.

Additional provision eight. Revision of the remuneration parameters applicable to electricity production facilities from renewable energy sources, cogeneration and waste.

- The Ministry for the Ecological Transition will approve within three months, by ministerial order, the retributive parameters of the type facilities applicable to the electric power production facilities from renewable energy sources, cogeneration and waste, checked considering the modifications

- The approved remuneration parameters will be applicable from the entry into force of the (mentioned) modifications

SPECIFIC RETRIBUTION REGIME.

BOE 97435 p. * Modification of articles 21 and 24 of Royal Decree 413/2014, of June 6th, to comply with the previous condition established by the European Commission on State Aid for the realization of new auctions.

With the objective of promoting renewable energy sources through new auctions for the concession of the right to receive the specific remuneration regime.

BOE 97457 p. Article 20. Modification of Royal Decree 413/2014, of June 6th, which regulates the production of electrical energy activity from renewable energy sources, cogeneration and waste.

One. A final paragraph with the following wording is added to article 21.2:

«For the purpose of calculating the number of equivalent hours of operation, the energy sold in the market shall not be considered, nor, in the case of cogeneration, energy generated in busbars, in those hours where the daily market prices of electricity are zero for six consecutive hours or more.»

Two. The fourth paragraph of article 24.1 is replaced by the following paragraph:

« In the event that public subsidies are received, the specific remuneration scheme will be reduced in order to comply with the Community regulations on the accumulation of state support.»

MEASURES WITH OBLIGATIONS AND DUTIES OF ECONOMIC CHARACTER.

BOE 97434 p. * “Measures intended to avoid speculation ensure the completion of projects with access rights to the network granted, raising the required guarantees imposing obligations of report of the degree of progress of projects, which will result in lower costs and, ultimately, lower prices for consumers”.

BOE 97459 p. * Third additional provision. Measures intended to ensure the completion of production projects with the right to access the network.

1. The amounts are modified (we add: increase in the amounts of the guarantees required) referred to in articles 59 bis.1 and 66 bis.1 of Royal Decree 1955/2000, of December 1st, which regulates the activities of transport, distribution, commercialization, supply and procedures of authorization for electric power installations, which are set at 40€ / kW installed.

2. At voltage connection points higher than 36 kV, in which all or part of the interventions carried out in the transport or distribution networks must be paid (we add: obligation to pay for intervention on networks) by the holders of the permits of access and connection and these must be developed by the carrier or distributor, holders of such permits must submit to the owner of the network a payment of ten percent of the investment value of the actions on the network, within a period not exceeding 12 months from obtaining the permits. The percentage and term indicated may be modified by royal decree of the Council of Ministers.

Once the previous period has took without the network holder receiving the fee of the economic amounts indicated in the previous paragraph, the access and connection permits will expire.

3. Once the amount indicated in the previous section has been paid and the previous administrative authorization of the production installation has been obtained, the holder of the access and connection permit will subscribe with the network holder, before four months have elapsed since the last of the two previous landmarks, a project assignment contract for network installations to which the producer will connect his installation. In this contract must be collected the payments, additionals to the amounts referred in section 2, for the development and execution of the installation by the network holder that must bear by the subjects who wish to connect to the network. The indicated term may be modified by Royal Decree of the Government.

In case of abandonmentl by the applicant, you can recover the costs paid except for the non-recoverable costs incurred until then by the network holder, in relation to the processing and construction of the network installation, and the access and connection permissions will expire.

4. The holders of the access and connection permits must accredit progress landmarks in the projects (we add: Obligation to inform). For this purpose, The deadlines in which the applicant must prove that he has made the requests for environmental impact declaration and prior administrative, construction and exploitation authorizations, and the terms in which he must have obtained them will be established by regulation.

5. The access and connection permissions of a generation facility will only be valid for the construction and operation of said facility. For this purpose, the criteria for defining a facility to be considered the same for the purpose of validity of access and connection permits will be defined by regulation.

6. Failure to comply with the provisions of paragraphs 2, 3 and 5 above for causes attributable to the interested will suppose the execution of the economic guarantees submitted for the processing of the application for access to the transport and distribution networks.

BOE 97463 p. * Third transitory provision. Transitory application to facilities that have access and connection permits before the entry into force of this royal decree-law.

1. The facilities that have access and connection permits before the entry into force of this royal decree-law and that will not meet the deadlines introduced by this royal decree-law, may waive their right of access and connection in the time of three months from the entry into force of this royal decree-law, proceeding with the return of the guarantee.

2. The above facilities, which do not resign within the indicated period, will have a period of twelve months to comply with the provisions of section two of the third additional provision.

Also, for compliance with section 3 of said third additional provision, the term shall apply from the later date of the following three the date of payment of the amount indicated in section 2 of the mentioned third additional provision collecting the prior administrative authorization of the production facility and the date of entry into force of the royal decree-law.

Once the previous periods have elapsed without the subscriber of the network being paid the fee of the economic amounts indicated in the previous paragraphs, the access and connection permits will expire, proceeding to the execution of the economic guarantees presented.

 

 

 

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