UNEF’s assessment of the announcement of the Royal Decree introducing urgent measures aiming at reducing the power invoice

The photovoltaic sector applauds the abolition of the ‘Sun tax’ and the administrative simplification

 

  • The photovoltaic sector applauds the elimination of charges to self-consumption that is not part of the grid, widely known as ‘Sun tax’
  • The Royal Decree contributes to the elimination of economic and administrative barriers that were established artificially and unfairly
  • The photovoltaic sector also values greatly the normalization and simplification of administrative procedures for self-consumption facilities, whose complexity slowed down the development of these facilities in Spain
  • For UNEF, the adoption of this measure acknowledges the collective bet on the photovoltaic sector, as well as the sector’s demand to drive self-consumption forward in Spain in a free market environment with no artificial barriers.

Madrid, October 9th - Spain’s Cabinet has announced today a Royal Decree on urgent measures to reduce the power invoice that will be passed in Congress in the near future.

UNEF values positively the turn taken in our country’s self-consumption policy. We finally see a legal framework that will allow its optimal development. UNEF has defended for seven years a self-consumption regulation free of administrative or technical barriers so consumers and society can enjoy the social, environmental and economic benefits self-consumption brings.

UNEF values greatly that the Royal Decree recognizes citizens’ right to self-consume power with no extra charge on power that does not go through the grid, as well as the acknowledgement of collective self-consumption in the Spanish power legislation.  

This has been a demand in all meetings and forums UNEF takes part in or organizes, and we have finally been able to prove how the current Government is in line with our desires.

The Royal Decree also includes important measures that help to the introduction of self-consumption, such as the definition of simplified administrative procedures that’s appropriate for the characteristics of the facilities, as well as the adoption of a penalty system that works according to the real impact of self-consumption on the power system. In this regard, UNEF believes the administrative system was the biggest obstacle to self-consumption.

Furthermore, the royal decree includes measures to promote shared self-consumption, a resolution that allows reaching higher efficiency in facilities and will benefit consumers the most. In Spain, where vertical housing dominates, the possibility to install shared self-consumption in buildings provides a great opportunity to reduce power costs.

The new Royal Decree including urgent measures to reduce power prices contributes directly to job creations and to a free market, as well as to the fight against climate change. On top of that, it leads to the reduction of power costs not only for prosumers but the society as a whole.

UNEF celebrates Spain’s first law recognizing consumers’ active role in the change of the power model, a key piece in the European Commission’s Winter package. Through self-consumption, all administrations, companies and individuals can be more aware of their power consumption, its costs and how to reduce them.

We invite all groups in Congress that have supported self-consumption in the past years to support this text so self-consumption regulations and its growth potential are finally unlocked in our country.

The main points on self-consumption included in the Royal Decree are as follows:

-   Types of self-consumption:

  • Self-consumption with no excess: when there is a sole subjetct, the consumer, and a physical device hinders the transmission of electricity to the power grid.
  • Selfr-consumption with excess: when facilities allow both self-consumption and the injection of power to the grid. There are two subjects: the consumer and the producer.

-   Acknowledgement of shared self-consumption:

  • Facilities connected to the associated consumers network.
  • Facilities connected to consumers through direct lines.
  • Facilities connected to low-voltage grid from the transformation hub.

 -   PRETOR (administrative registry of power production facilities)

  • Facilities below 100 kW are exempt.

-   Administrative registry of power self-consumption:

  • It will follow-up the economic activity and verify levels of compliance of the European energy goals.
  • Online, free access.
  • Regional administration bodies will be able to create regional self-consumption registries. Regardless of their existence, they will have to share self-consumption data with the central Government.
  • Facilities below 100 kW will not need to register in the regional registry. The regional administration will do it itself with the information from the Low Voltage Electrotechnical Regulations.

-   Charges and tolls:

  • Renewable, self-consumption energy will be exempt of extra charges and tolls.
  • Should there be a power transfer to the grid, the amount will be regulated as per the use of the network.
  • Exceedances will be treated equal to the energy produced and transferred to the network, and the power consumed will be treated equal to the rest of consumers.

-   Grid connection:

  • Self-consumption facilities with no surplus up to 100kW will only have to comply with the corresponding technical regulation.
  • Facilities will only have measuring equipment’s needed for their correct invoicing.
  • Only the following will need access and connection permissions:
  • Self-consumption facilities with no overproduction, if the consumer already has access and connection permissions.
  • Facilities with power under 15 Kw in urban soil not registered in the registry of production facilities.

 

-   Sanctions:

  • 10% of annual revenues for the consumption of electric power or 10% of revenues from energy transferred into the power grid.

Other contents worth highlighting:

-   Measures against energy poverty and vulnerable consumers.

-   Regulation of specific commercial practices so consumers know how fares work.

-   Fostering of power generation through renewable sources and elimination of barriers to electric mobility.  

-   6-month suspension of 7% tax to power generation and special hydrocarbons tax on electricity.

 

Kreab UNEF

Tlf. 91 702 71 70 Tlf. 91 781 75 12
Angel Garcia Merino Patricia Viñes
agmerino@kreab.com comunicacion@unef.es