Iberdrola and Repsol are screaming to the heavens for energy taxes

Iberdrola and Repsol are screaming to the heavens for energy taxes

BarcelonaTwo major Spanish energy companies, oil company Repsol and electricity company Iberdrola, have strongly criticized high taxes on the sector in Spain, even though both reported results for 2023 with million-dollar profits. In the case of Iberdrola, the company's net profit was 4,803 million euros, an increase of 10.7% over the previous year. In the case of the oil company, it ended 2023 with a net profit of 3,168 million euros, 25% less than the previous year, but the third best profit in the group’s history.

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The two companies have repeatedly opposed the tax imposed on energy companies by the government of Pedro Sanchez, in the midst of the crisis caused by the war in Ukraine. Repsol went so far as to say at the time that it could freeze investments in the country. Despite criticism of the tax, Repsol was more moderate on Thursday, while Iberdrola, in the words of its president Ignacio Sanchez Galan, did not hesitate to impose taxes in Spain.

Sánchez Galán criticized the large number of taxes in Spain, nearly forty, and insisted that maintaining the government's extraordinary tax on the profits of energy companies “makes no sense.” For the head of the electricity company, this situation “has no comparison to anything the rest of the world does”: “Spain must be fully compatible with the rest of the European countries and with other countries outside the European Union, because we want to make this country completely attractive.”

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The director also noted that this special privilege already exists in court. The tax was born of a “temporary” nature to deal with the crisis caused by the war in Ukraine and the government of the Socialist Workers' Party and Somar announced the intention to extend it, although to ease it, and to include in the budgets incentives for reinvestment.

For his part, Repsol CEO, Josue John Imaz, softened his critical tone on taxes a bit: “I have a slightly more positive view compared to the one I had a few weeks ago. But we'll wait, we'll see.” However, he noted that it was He was “absolutely clear” in the past when he warned that investments in transforming his positions in Spain would not be processed if “we do not see returns and clear certainty” regulatory and financial.

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