Government will review the law on the Basement Occupancy Tax that distributors charge customers – Current Affairs

In a statement released today, the Ministry of Environment and Energy (MAEn) considers it “fundamental to review” the changes introduced with the approval of the 2017 State Budget, which, it considers, “generated distortions that penalize consumers, companies and municipalities”.

This fee was created in 2006 and was initially charged by municipalities to natural gas distributors for the use and exploitation of municipal public and private assets, such as underground gas networks.

However, since 2008, gas distributors have been authorized to transfer this cost to consumers, through the natural gas bill.

Subsequently, the law that approved the State Budget for 2017 provided that “the municipal fee for rights of way and the municipal fee for underground occupation are paid by infrastructure operating companies and cannot be reflected in consumers’ invoices”.

To ensure application, “previous Governments should have made legislative changes to operationalize the provisions of the Law, ensuring that inequities were not created”, which was not done, says the current Government.

“For seven years, the problem remained unresolved, resulting in an increase in complaints and litigation between agents involved in the process”, said the Ministry of the Environment in the statement released today.

The TOS legal regime “will be reviewed to ensure due proportionality in its application”, announced the ministry, adding that it is evaluating the matter, “considering the perspectives of consumers, municipalities and infrastructure operators, and also taking into account takes into account the position of the regulator (ERSE) and the rulings of the courts that have ruled”.

In 2023, the Supreme Administrative Court considered that charging the fee is illegal, based on the 2017 State Budget rule, but the measure remains unapplied and the fee continues to be charged.

Some municipalities raised the rate again in January this year, with Barreiro, Cartaxo, Évora, Cascais and Arruda dos Vinhos being those that charge the highest amount, according to ERSE data consulted by Lusa.

DECO PROteste recently pointed out “incomprehensible discrepancies”, giving the most obvious example of Barreiro where, in a scenario of monthly consumption of 200 kWh (equivalent to 17 cubic meters/month), consumers’ monthly bills add 10.64 euros, compared to 1.14 euros charged in the neighboring municipality of Palmela, or 2.77 euros in the municipality of Seixal, in the same region.

There are municipalities, such as Figueira da Foz and Barcelos, that currently do not charge a basement occupancy tax, while Esposende has a negative rate.

In the debate on the State Budget proposal for 2024, the PS rejected a proposal to add to the PCP which determined that the subsoil occupancy rate (TOS) should not be passed on to natural gas consumers, as is currently the case. The proposal was rejected by the PS and Liberal Initiative and had the abstention of the PSD.