Bloomberg News

Spain to Set Out Power System Reforms Raising Taxes Tomorrow

July 12, 2012

The Spanish government will set out the details of its plans to eliminate the shortfall in power- system revenue following the weekly Cabinet meeting tomorrow, according to an Industry Ministry official.

The official asked not to be named in line with government policy.

The government plans to raise taxes to cover power costs swollen by payments for renewable energy, coal mines, under- employed gas-fired generators, the Spanish islands and poor families, Prime Minister Mariano Rajoy said yesterday.

Industry Minister Jose Manuel Soria yesterday said he plans to impose a progressive tax on power producers so that the technologies that receive more subsidies contribute more, Europa Press reported.

The gap between costs and revenue in the government- controlled power industry has racked up a debt of more than 25 billion euros ($31 billion). The liabilities don’t count on the government’s books even though they are guaranteed by the state.

To contact the reporter on this story: Ben Sills in Madrid at bsills@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net


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