Europe's news in English

COPY LINK

MONEY

Spanish government announces raft of measures to combat rising electricity prices

The Council of Ministers this Tuesday approved a wide range of measures to help reduce the extortionate electricity bills that families in Spain have been facing in recent months.

Published: 14 September 2021 15:57 CEST

Spanish government announces raft of measures to combat rising electricity prices

Spanish third Deputy Prime Minister Teresa Ribera announced new measures to combat rising electricity bills. Photo: PIERRE-PHILIPPE MARCOU / AFP

Among the government’s decisions are putting a cap on the price of gas, forcing electricity companies to sell part of the energy they generate at a fixed price, and the extension of tax cuts on electricity bills.

In Tuesday’s press conference, third deputy Prime Minister, Teresa Ribera, insisted that this “shock plan” will mean a reduction in electricity bills of 22 percent, and that if the measures already adopted are added – such as the reduction VAT and other taxes – the reduction in the electricity bill will reach 30 percent.

Special tax on electric power has also been dropped from 5.1 percent to 0.5 percent, as promised by Prime Minister Pedro Sánchez during his interview with TVE on Monday.

The government hopes that these new plans will have an immediate impact on electricity bills.

In recent weeks, the increase in the price of electricity has generated significant tensions within the government coalition.

The PSOE had so far opted for tax cuts, while Unidos Podemos proposed the need to create a public company and limit the price of nuclear and hydroelectric energy, something that Ribera had rejected, with the argument that it would violate EU law.

After the announcement by Sánchez on TVE, the Minister of Social Rights and Secretary-General of Podemos, Ione Belarra, said “It’s the best news” that the PSOE “has accepted some proposals” from Podemos to “regulate the market and lower the price of electricity”.

“The government must protect the people against electricity companies that profit from the cost of a basic right,” he concluded.

READ ALSO:

Member comments

Log in here to leave a comment.

Become a Member to leave a comment.

EXPLAINED: How to buy a boat in Spain

Spain has around 8,000km of coastline, and access to the Mediterranean, Atlantic, and Bay of Biscay. For boat enthusiasts, you’re spoilt for choice in Spain.

But it’s not just as simple as picking out a boat, buying it and setting off into the ocean.

There are several decisions you’ll need to make first, rules to follow, administrative hoops to jump through, and then maintenance costs on top of that.

Types of boats

The first thing you’ll need to consider is the type of boat you want to buy.

Generally they can be split into two broad categories: motor boats and sailing boats.

Motor boats are the most popular type of boat sold and offer the greatest variety of options because they include pretty much everything from smaller more affordable power boats to huge luxury yachts.

As such, you could get a smaller motor boat, say for day trips of fishing on the coast, for as little as €10,000, whereas yachts, as you can imagine, can cost millions, depending on the size, power, design and quality of the boat.

According to several Spanish maritime sources, buying a used boat that you can live on in Spain can cost anywhere between €13,000 and €150,000.

Spanish website topbarcos.com has hundreds of boats listed for you to get an idea of what’s available in the second-hand market, as well as a page for new vessels.

Sailing boats are the more environmentally friendly option and require the most skill to sail, and include light sailboats, catamarans and trimarans. Again, prices vary from €5,000 to over a million, depending on the size, type of sail, material and quality of the boat.

Once you’ve decided on the type of boat you want and found one you’d like to buy, you’ll need to consider any potential legal requirements.

A woman sits next to a yacht in Puerto Banús luxury marina in Marbella. (Photo by JORGE GUERRERO / AFP)

What are the legal requirements when buying a boat in Spain?

The correct nautical qualifications for the type and size of the boat you want to buy. There are different types of nautical licences to sail different boats in Spain, such as the PNB (Basic Navigation Skipper), the PER (Recreational Boats Skipper), the PY (Yacht Skipper) or the CY (Yacht Captain). Each has specific limitations in terms of length, power, distance from the coast and the type of sailing you can do.
Compulsory civil liability insurance that covers possible damages that you may cause to third parties with your boat.
Have all the necessary documentation for the boat, such as the certificate of seaworthiness and (essentially an MOT for the boat, showing that it’s in working order) and the navigation permit.
You’ll also need to pay the corresponding taxes on the boat purchase, such as VAT (21 percent), the special tax on certain means of transport (12 percent) or the transfer tax (4 or 6 percent, depending on the region).

READ ALSO: How do I get my boat licence in Spain

What other factors should you keep in mind before buying?

Think about what type of navigation you want to do, how often, with how many people and what your budget is.

Don’t go with the first boat you see. Search and compare different models, brands, prices, conditions etc and don’t forget to keep an eye out for scams.

It’s a no-brainer but try the boat before you buy it, don’t just rely on photos or descriptions. Request a test ride to check the condition and navigational operation of the boat.

If you do not have much experience or knowledge of nautical matters, it’s advisable to hire a professional to accompany you throughout the purchasing process. It could help you avoid possible legal, technical or administrative problems that arise.

They will also assist you with checking the condition of the boat’s interior: the carpentry, the engine, the electrical installation, the tanks, bilge, kitchen, bathroom and other compartments.

Here is a list of dozens of Spain-based brokers (as they’re called) or nautical companies that can assist you.

Crucially, they will also be able to give you an informed assessment of what price you should be paying for the boat you’ve chosen.

How can you pay for a boat?

Unless you have enough disposable income to pay for it cash, you probably want to know what kind of financing is available to you.

There is the nautical mortgage (hipoteca náutica), which mimics the system for property mortgages, including the need for a down payment and embargo conditions in non-payment situations.

Nautical credits (Créditos náuticos) also exist, which again are not too different from regular loans, including fewer notary costs than nautical mortgages and fixed interest rates.

And lastly, nautical leasing is also an option, which is when a company acquires a boat and rents it to a customer for a certain period of time (normally between 4 and 15 years) and usually with an option to buy at the end of the contract.

Don’t forget the upcoming maintenance costs

If you manage all that and buy the boat, you’ll need to maintain the boat and pay costs to do so. These include:

The mooring: ie. the place where the boat is left when it is not in use. The price of mooring depends on the size of the boat and the location of the port. It can range from around €100 per month to several thousand.

However, be warned, in Spain these aren’t easy to come by. The Association of Industries, Commerce and Nautical Services (ADIN), estimates that Spain has only 107,894 moorings for 229,000 boats.

You’ll also need to pay for periodical technical checks that must be carried out on the boat from time to time to check its condition and operation. Again, the price depends on the type and size of the boat and the services contracted. It can vary from around €200 euros to several thousand.

Regularly cleaning the boat to avoid dirt, rust, algae, and parasites damaging the boat can also be quite costly. It can vary from as little as €50 for smaller boats to several hundred for bigger ones, and most experts recommend it should be done every 4-6 weeks.

READ ALSO: How to live on a boat in Spanish waters

Url copied to clipboard!