The Permanent Deputation of the Congress has validated this Friday the two royal decree-laws approved by the Government to address the consequences of the war in Iran and alleviate the situation of those affected by the flooding of 2024. The regulations allow for the maintenance of fuel subsidies and measures to contain energy prices, in addition to forgiving the repayment of certain advances granted after the floods.
The vote was held in the first meeting of the Permanent Deputation since the dissolution of the Cortes due to the call for general elections on November 29. This body, made up of 69 deputies, assumes the competencies of the Congress during the electoral period and will have to meet again to pronounce on the two housing decrees that the Executive approved again after their parliamentary rejection on October 2.
The session has also been marked by the electoral pre-campaign. At the doors of the Constitutional room, journalists' questions to the deputies have mainly focused on the elections of 29N, with special prominence for the negotiations between the parties to the left of the PSOE to finalize their electoral coalitions.
Both decrees had received the green light from the Council of Ministers on September 29, before Pedro Sánchez announced the electoral advance. In the parliamentary debate, the Minister of the Presidency, Justice and Relations with the Cortes, Félix Bolaños, defended the aid decree for the flooding, while the Minister of Economy, Trade and Business, Carlos Cuerpo, presented the measures against the economic consequences of the war in Iran.
Fuel subsidies until the end of the year
The decree regarding the energy crisis extends until December 31, 2026 the tax reductions on gasoline and diesel, as well as other measures aimed at containing the increase in energy prices resulting from the war in Iran.
The regulation establishes a bonus of 20 cents per liter when the year-on-year variation of the CPI of gasoline or diesel exceeds 15%. The National Institute of Statistics (INE) has confirmed that September prices exceeded that threshold, so the discount of 20 cents per liter will remain in effect during November.
The decree also maintains specific aids for the agricultural, fishing, and professional transport sectors. In the latter case, it includes a partial refund of the hydrocarbon tax of five cents per liter in October, 12 cents in November, and 19 cents in December.
Farmers will retain until the end of the year the bonus of 20 cents per liter of agricultural diesel, while fishing vessel owners will continue to receive compensatory aids. As a novelty, a support line for the rail transport of goods of 15,000 euros for each diesel locomotive is incorporated.
Limits on the price of gas and butane
Among the validated energy measures is the limitation of the increases in the Last Resort Tariff (TUR) of natural gas, coinciding with the arrival of winter and the increase in domestic consumption due to heating.
The decree limits the increase in the gas quotation that can be incorporated into the tariff calculation formula to 35%, with the aim that the final increase of the TUR is around 15%. In subsequent quarterly reviews, the maximum increase in the quotation will be limited to 15% until the accumulated deficit is compensated.
A maximum price of 19.55 euros for the butane cylinder until June 30, 2027 is also established, compared to the 18.84 euros of the current maximum price.
The package also maintains the clause that allows reducing the VAT on electricity and gas from 21% to 10%, as well as the special tax on electricity from 5.1% to 0.5%, when the inflation conditions provided in the regulation are met.
In the case of electricity, the tax reduction is aimed at consumers with contracted powers below 10 kW and beneficiaries of the social bonus. The VAT reduction can also apply to natural gas, briquettes, pellets, and wood intended for firewood.
New aids for transport and price monitoring
The regulation expands support measures for land, maritime, and rail transport, in addition to maintaining labor guarantees linked to the receipt of public aids, including restrictions on layoffs.
Furthermore, the Government commissions the National Commission on Markets and Competition (CNMC) two studies on price formation. The first will analyze the wholesale and retail energy markets and the functioning of their distribution and marketing chain.
The second will examine the food value chain and must formulate recommendations to improve the functioning of the market and evaluate the effectiveness of the measures adopted.
About the dana
The second validated decree modifies the regulation of the aids granted to those affected by the floods of October and November 2024. Its main novelty is the cancellation of the obligation to repay certain advances received on account of the aids for the damages caused by the disaster.
According to the estimates of the Executive, the measure will allow forgiving 44.35 million euros. In total, 2,771 beneficiaries were initially required to return all or part of the amounts advanced.
The cancellation, however, will not be universal. The obligation to repay will remain for those who have obtained incomes exceeding 42,000 euros annually in 2025 or have assets exceeding 300,000 euros, excluding the primary residence.
With this modification, the Government aims to prevent the repayment of advances from adding economic difficulties to those who still face the consequences of the floods.
Until next time
The Permanent Deputation must hold a new session to pronounce on the two housing decrees that the Government re-approved after their rejection in the Plenary of Congress on October 2. This time, the Executive has a different parliamentary arithmetic, as the body is made up of 69 deputies and the absolute majority is at 35 votes, so it does not need the support of Junts to advance the first of the texts.
The Government already has the necessary supports to validate the first decree, which includes fiscal measures and access to housing, thanks to the votes of PSOE, Sumar, ERC, EH Bildu, PNV, and Podemos.
However, the validation of the second decree, which includes the extraordinary extension of rental contracts and the suspension of evictions of vulnerable households, remains pending the necessary supports, especially from the position of PNV.