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Spain / Supreme Court / 1308/2017

Regional Government of Aragón v Endesa Generación

Deciding Body type:
National Court/Tribunal
Deciding Body:
Supreme Court of Spain
Decision date:

Key facts of the case: 

A Spanish electric company demands the money paid for a regional tax existing in the Autonomous Community of Aragon to protect the environment from polluting emmissions, governed by Royal Decree 1/2007, of 18 September, regulating environmental taxation legislation in the Autonomous Community of Aragon. Endesa Generación S.A. considered this tax discriminatory and therefore, unconstitutional because in order to prevent environmental damage, every electric company is subject to it, taxing energy production regardless of their real responsibility to pollution, particularly in relation to the right to a fair tax system (Article 31 Spanish Constitution).

The said enterprise started litigating both through administrative and judicial procedures until the case reached the Spanish Supreme Court on the grounds of an alleged infringement of European Law; in particular, Article 36 of Directive 2009/72/EC on rules for the EU’s electricity market, and Articles 3 and 5 of the Directive 2005/89/EC concerning measures to safeguard the security of the electricity supply and infrastructure investment.

Outcome of the case:

The Court affirmed the action appealed from by Endesa Generación S.A.