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Tax changes introduced by Royal Decree-Law 17/2021, of 14 September, on the urgent measures adopted to mitigate the impact of the escalation in price on retail electricity markets (Official State Gazette of 15 September 2021)

Royal Decree-Act 17/2021, of 14 September, has introduced emergency measures to mitigate the impact of price escalations in retail electricity markets.

This Royal Decree-Act introduces a series of measures relating to energy taxation that contribute to reducing the costs included in final electricity bills:

  • Firstly, the temporary suspension of the tax on the value of electricity production has been extended for an additional quarter, into the fourth quarter of 2021.
  • Furthermore, an exceptional and transitory reduction in the tax rate of the Special Electricity Tax, regulated in Law 38/1992, of 28 December, on Special Taxes, from 5.11269632 percent to 0.5 percent, has been established until 31 December 2021.

Royal Decree-Law 17/2021, of 14 September

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