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Iberdrola

Draghi, taxes on energy companies as in Spain

Draghi's 25% tax on energy companies' skyrocketing profits is already collected in Spain in other taxes.
Mario Draghi

 -   Mario Draghi, President of the Council of Ministers of Italy

The news must have come as a bombshell for Spanish gas and oil companies: Draghi raises the tax on energy companies' skyrocketing profits to 25%. The other energy companies, the electricity companies, as it is known that they do not have profits fallen from the sky as they have shown in their accounts, seem a bit more unconcerned.
 
Italy's tax rate will increase from the 10% announced in March to 25% for all energy companies and to offset the extraordinary profits obtained from the brutal increase in the price of gas and crude oil. In this way, the Italian government will finance part of the 14,000 million euro package of aid to companies and families to alleviate the effects of the crisis.
 
The oil companies, especially REPSOL, and the gas companies, such as Naturgy, have shown enormous concern that the National Government will dilute their brutal profits. Without going any further, REPSOL doubled its profits in the first quarter of this year. They are terrified: when you see your neighbor's beard peel...
 
On the other hand, the electric utilities are competing in a carefree manner after showing a profit cut in Spain. Far from having 'profits falling from the sky', what they have had are higher costs and lower results.
 
To make matters worse, electricity companies are already paying Draghi's 25%. Or similar. So let's see. Spanish electricity companies pay a total of a whopping 1.9 billion euros for various concepts unrelated to other sectors. 1.9 billion euros!
 
In Spain, hydroelectric and nuclear technologies suffer taxes amounting to 22 and 23 Eur/MWh respectively (including the 7% tax on the value of electricity production, which in unit terms represents 5 Eur/MWh).
 
Why does hydroelectric power pay 22 EUR/MWh? This is 17 Eur/MWh of the hydroelectric fee that they just approved and 5 Eur/MWh of the IVPEE (7%) that they suspended in June 2021.
 
Why does nuclear pay 23 Eur/MWh? Here the imagination overflowed the legislators: 5 Eur/MWh from the nuclear tax, 8 Eur/MWh from the Enresa tax, 5 Eur/MWh from the autonomic eco-taxes, 5 Eur/MWh from the IVPEE (7%) which, as we say, the latter was suspended in June 2021.
 
If the production is 29,579 GWh for hydroelectric and 54,060 GWh for nuclear, according to Red Eléctrica de España, the public sector collected 1.9 billion euros from the electricity companies, which are precisely the energy companies that do not have profits falling from the sky.