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Spain to Raise Energy Taxes as Early as Today, Cinco Dias Says

Spain may approve new energy taxes today designed to raise 4.3 billion euros to help cover the higher costs of generating low-carbon electricity and to avoid raising power prices directly, Cinco Dias reported.

The three tax increases are part of a group of new rules that may be approved by the cabinet of ministers or delayed to its meeting a week from today, the newspaper said, citing unidentified people in the power industry.

One measure would introduce a so-called green tax on fuel of about 4 euro cents a liter to help spread the extra burden of switching away from polluting fuels beyond power users to drivers and the transportation industry, the report said.

The other measures would raise the current 5 percent tax on electricity generation as well as create a new tax on “production” of power largely affecting wholesale suppliers of power from coal- and gas-fired plants, Cinco Dias said.

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