Energy reform or merely new taxes? Draft bill on tax measures for sustainable energy.

Since late Spring, the Ministry of Industry, Energy and Tourism has been publicly contemplating an imminent and much needed reform of the electricity system in order to put an end to the electricity charges deficit which, by the end of 2011, amounted to a staggering twenty four billion Euros. Last Friday, September 14th, the Council of Ministers finally approved the referral of the Draft Bill on Tax Measures for Sustainable Energy to the Spanish Parliament. Based on the Government issued press release, we can infer that, for the time being, the reform boils down to the creation of new taxes on&nbsp,the various activities associated, either directly or indirectly, with the production and sale of electricity. In all likelihood, and despite the fact that the Government argues otherwise, these taxes will ultimately be passed on to the consumer. The objective is that by 2013 the electricity charges deficit will reach zero.