The government will review the law on the cellar tax that distributors charge customers

The government will review the current Subsoil Use Tax (UTT) law, which determines that gas distribution companies pay it, but many continue to charge consumers to “ensure proportionality in application.”

In a statement published this Sunday, the Ministry of Environment and Energy (MAEn) considers it “principal” to review the changes introduced with the approval of the 2017 state budget, which, in its opinion, “have created distortions that penalize consumers, companies and municipalities” . “.

This fee was introduced in 2006 and was originally levied by municipalities on natural gas distributors for the use and operation of municipal public and private assets, such as underground gas networks.

However, since 2008, gas distributors have been allowed to pass these costs on to consumers through their natural gas bill.

Subsequently, the law that approved the state budget for 2017 provided that “municipal tolls and municipal underground fees are paid by the enterprises operating the infrastructure and cannot be reflected in consumer bills.”

To ensure its implementation, “previous governments should have made legislative changes to give effect to the provisions of the Act, ensuring that inequalities were not created,” which was not done, the current government argues.

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

The TOS legal regime “will be reviewed to ensure due proportionality in its application,” the ministry said, adding that it is assessing the issue “taking into account the perspectives of consumers, municipalities and infrastructure operators, and taking into account the position of the regulator (ERSE) and decisions the courts that made their decisions.”

In 2023, the Supreme Administrative Court ruled that the levy was illegal based on the 2017 state budget rule, but the measure remains unenforced and the levy continues to be collected.

According to ERSE data seen by Lusa, some municipalities raised the rate again in January this year, with Barreiro, Cartacho, Évora, Cascais and Arruda dos Vinhos charging the highest amount.

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

There are municipalities such as Figueira da Foz and Barcelos that currently do not levy a tax on basement accommodation, and Esposende has a negative tax rate.

When discussing the proposal for the state budget for 2024, the PS rejected the proposal to introduce an amendment to the PCP, which would determine that the subsoil utilization factor (TOC) should not be transferred to natural gas consumers, as is the case now. The proposal was rejected by the PS and the Liberal Initiative, and the SDP abstained.