What changes now for residents and visitors on Tenerife?

The IEA report changes nothing for now for residents and visitors on Tenerife. The agency gives Madrid recommendations, not decisions, and the reports named no date for any tax change.

The Canary Islands charge no VAT on electricity but the IGIC (the Canary Islands consumption tax). Since 2019 the rate has been 0% for households and small businesses with up to 10 kW of contracted power, while large businesses pay 3%.

According to the vice-president of the Canary Islands government, 96% of consumers benefit. To check whether your contract falls under the 10 kW limit, look up the figure in your contract papers.

Hotel guests and holiday-flat renters need to do nothing. The research found no proof of price effects for accommodation in the south of the island.

What exactly did the IEA criticise in Spain?

The IEA, an autonomous body of the OECD, reviewed Spain's energy policy of the past ten years in detail. It praises the “impressive” growth of renewables and the lower dependence on imports.

The build-out saved gas and kept power prices in check, the IEA says. It still calls for more electrification, because Spain remains heavily dependent on gas and oil.

High taxes on electricity stand in the way, according to the IEA. Fossil fuels carry a lighter tax burden, so the signal points the wrong way.

The reports did not say which taxes are meant or how high they are. They also contain no comparison with other EU countries.

The IEA sees work to do on the grid too, above all after the major blackout of April 2025. It adds that growth leaned too heavily on solar, and more wind and storage should restore the balance.

Why does this involve nuclear plants the Canary Islands do not have?

The IEA asks Madrid to rethink the nuclear phase-out dates and to examine delays “case by case”. It cites the extension for the Almaraz plant in Extremadura as a model.

Under the 2019 agreement between operators and government, the seven reactors close in stages: four by the end of 2030, three by 2035. Almaraz I was due off the grid in November 2027 and Almaraz II in October 2028, though some sources also give October for unit I.

The nuclear safety council CSN gave the green light on 16 July 2026 for operation until 8 June 2030. According to World Nuclear News, the government approved the extension on 14 August 2026, but that comes from a single source.

The ministry calls the extension temporary and says it does not change the 2035 closure year for all reactors. It justifies the move by the aim of shielding consumers from unforeseen price spikes after tensions in the Middle East and Ukraine.

According to World Nuclear News, the seven reactors supply around 20% of Spain's electricity. Almaraz I and II alone provide over 7%, serve about 4 million households and employ around 4,000 people.

Who decides on operating lives, and who pays?

The CSN is the independent safety authority and issues the technical opinion. The central government in Madrid decides on the extension.

Iberdrola, Endesa and Naturgy own the plants. In 2025 the operators asked for the timetable to be reviewed and demanded lower taxes and fees.

The operators bear the taxes and the radioactive waste fee. The industry sees the competitiveness problem there rather than in operating costs.

Minister Sara Aagesen commented on the Almaraz extension. The power companies did not make it conditional on tax cuts, Aagesen said.

This criticism is not new: the IEA review of 26 May 2021 warned that electricity must not lose out to oil and gas. It also urged a check on what a fast nuclear exit costs consumers.

What is still open, and what comes next?

It is unclear whether the government will respond to the new IEA report. The research found no statement on it on 5 November 2026.

The tax rates the IEA means and any dates for change also remain open. The reports named no date for taxes or operating lives.

The zero tax on household electricity in the Canary Islands is a decision of the regional government. It is not the state levy the IEA criticises, and a link between the nuclear closures and Canary electricity prices is not proven.

Officially the phase-out by 2035 stands, and Almaraz runs until June 2030 as things stand. Whether the 14 August date is final should still be checked against the BOE (Spain's official state gazette) or the ministry.