Endesa files a financial claim against the government for the 'Enresa tax'

Endesa has filed a financial claim against the Ministry for Ecological Transition and the Demographic Challenge and the National Radioactive Waste Company (Enresa), seeking €454 million in damages for the increase in the tax that finances radioactive waste management and the decommissioning of nuclear power plants, known as the "Enresa tax," sources familiar with the claim confirmed to Europa Press.

A year ago, the government decided to approve a 30% increase in the tax paid by nuclear power plants in order to adjust it to all the costs stipulated in the Seventh General Plan for Radioactive Waste (PGRR).

Sources from Sara Aagesen's office told Europa Press that, regarding the appeals against the increase in the financial benefit known as the 'Enresa tax,' the Ministry "has received a financial claim from Endesa, and its defense is already in the hands of the State Attorney's Office."

According to El País, the filing of this claim by the energy company headed by José Bogas will result in a report from the Council of State. If it is rejected, as is the case in most cases, the electricity company could pursue legal action, as is also common with these lawsuits.

The "Enresa tax," which is actually a non-tax capital benefit through which owner companies make contributions to a fund that will cover waste management and the decommissioning of nuclear power plants, was revised last year to €10.36 per megawatt hour (MWh), 30% higher than the previous €7.98/MWh.

In this way, it contributes to a fund managed by the public company Enresa, which is responsible for radioactive waste and reactor decommissioning.

In February, Iberdrola filed an administrative lawsuit against Enresa, seeking €324 million for the increase in this tax.

When the nuclear power plant closure protocol was signed in 2019 between the owner companies and Enresa, a maximum 20% increase in the tariff was contemplated compared to the current rate, with a cap of €7.98/MWh.

Last month, it was announced that Endesa and Iberdrola had submitted a proposal to Sara Aagesen's cabinet to extend the lifespan of nuclear power plants.

However, the Ministry considered the letter to be "a declaration of intent" that did not meet the three red lines established by the Government for processing a formal request.

Specifically, the red lines outlined by the Executive are ensuring safety for people, ensuring security of supply, and ensuring that this does not entail additional costs for citizens.

This recent proposal to revise the nuclear schedule, which was signed by Endesa and Iberdrola, but not by Naturgy and EDP España, the other two owners of the Spanish nuclear fleet, proposed maintaining the final closure date of 2035 and extending the planned intermediate deadlines.

Thus, the request was made to extend the Almaraz plant in Extremadura, the first planned for closure (in 2027 for one group and 2028 for the other), according to the protocol agreed upon by the companies and Enresa, until 2030. This would entail a reduction in the so-called Enresa tax—payments to finance the cost of waste management and decommissioning the plants—by dividing the revenue by more years of production.

However, at several plants, such as Almaraz, which is part of the Almaraz-Trillo Nuclear Power Plants (CNAT), there is a joint ownership agreement that requires unanimous agreement among the shareholders, regardless of their percentage of ownership.

Iberdrola is Almaraz's majority shareholder, holding 52.7% of the capital, while Endesa holds a 36% stake and Naturgy a 11.3% stake.

Both Prime Minister Pedro Sánchez and Sara Aagesen have recently opened the door to studying an extension of the useful life of nuclear plants, although they have made it clear that this will come with conditions.

At the beginning of last May, Sanchez stated in the Congress of Deputies that extending nuclear power plant operations beyond 2035 depended on three criteria.

The first was that the extension would guarantee the safety of citizens; the second was that it would be economically viable and that it would be funded by the "ultra-rich who preside over these energy companies" and not come out of taxpayers' pockets; and the third was that the measure would guarantee the security of the electricity supply. "Three criteria that seem absolutely common sense to me," he emphasized.

Both Iberdrola and Endesa have already expressed their clear willingness to extend the life of the Almaraz nuclear power plant, provided the right conditions exist. Naturgy has also supported an extension of this plant until 2030 to subsequently rethink the future of nuclear energy in Spain.

However, the taxation of nuclear power is one of the major issues that the owner companies are asking to be put on the table when addressing this extension.

An EY study indicates that Spain is the only country with additional taxes on nuclear power plants, such as the tax on the production of spent nuclear fuel and radioactive waste, or regional eco-taxes, which amount to 9.2 euros per MWh.

Specifically, the study, which compares the taxation and financing mechanisms for decommissioning and radioactive waste management in seven European countries with established nuclear programs—Spain, the United Kingdom, Belgium, France, Finland, Sweden, and Switzerland—highlights that the tax on the production of spent nuclear fuel and radioactive waste and eco-taxes, which do not exist in other countries, are not specifically intended to cover any costs associated with nuclear operations.

These taxes are part of the burden on Spanish operators, which is estimated at a total of 27.3 euros/MWh gross (28.6 euros/MWh net), the report calculates.