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19 November 2018
Energy sector extraordinary contribution expanded
Other energy sector proposals
On 15 October 2018 the government presented its 2019 Budget Law Proposal. It is currently under discussion by Parliament and the relevant parliamentary committees and may be amended as a result of the proposals submitted by the various parliamentary groups. The revision of the State Budget Law by Parliament is expected to be concluded by mid-December 2018. The 2019 Budget Law Proposal includes several measures for the energy sector.
As per the 2019 Budget Law Proposal, energy sector extraordinary contributions will be levied on generators that operate renewable energy power plants licensed under the guaranteed remuneration scheme (ie, the sale of electricity to the last resort supplier against payment of a legally or contractually determined feed-in tariff), which to date had been exempted from paying such contributions.
According to the 2019 Budget Law Proposal, the following generators will remain exempted from the energy sector extraordinary contribution regime, even though they most likely benefit from feed-in tariffs:
The energy sector extraordinary contribution regime proposed by the government has a special focus on special regime generation through endogenous resources – both renewable and non-renewable. In previous years (and with the exception of cogeneration), this type of electricity generation had been excluded from its scope as a recognition of its role in reducing Portugal's external energy dependence and greenhouse gas emissions as well as contributing to fulfilling national and European targets with regard to renewable energy generation and consumption.
Despite its so-called 'extraordinary' nature, the 2019 Budget Law Proposal acknowledges the need:
The energy sector extraordinary contribution regime was first approved in the 2014 Budget Law and has been heavily disputed by the operators that it covers ever since.
The State Budget 2019 also includes the following energy sector proposals:
Government authorisation to:
For further information on this topic please contact Catarina Brito Ferreira or Joana Alves de Abreu at Morais Leitão Galvão Teles Soares da Silva & Associados by telephone (+351 21 381 74 57) or email (firstname.lastname@example.org or email@example.com). The Morais Leitão Galvão Teles Soares da Silva & Associados website can be accessed at www.mlgts.pt.
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Catarina Brito Ferreira
Joana Alves de Abreu