2023-12-29 02:12:26
Friday, December 29, 2023, 01:12
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In June 2021, when the war in Ukraine had triggered an increase in energy prices, the Government decided to lower the VAT on electricity and gas from 21% to 10%. A year later it approved a new reduction, this time to the super-reduced rate of 5%.
The normalization of energy prices – especially that of gas, with a great impact on that of electricity – has led the Executive to gradually recover the path of normality, so that electricity will once again be taxed at 21% of the VAT.
However, this increase will be staggered, so that pockets also adapt gradually. Starting January 1, and throughout 2024, the VAT applicable to electricity will be 10%. In 2025, the tax will predictably recover the 21% in effect until two and a half years ago.
How much will these increases represent in the electricity bill? The experts from Selectra, a comparator of energy and telecommunications rates, have carried out a simulation with two scenarios (10% and 21% VAT).
In the first case, it calculates that the bill will grow by less than 2 euros per month (1.85 exactly) if a home with a monthly consumption of 190 kWh and a price per kilowatt/hour consumed of 0.12 euros is taken as a reference.
With these parameters, until now an invoice of 38.77 euros was paid. Starting January 1, with 10% it will rise to 40.62 euros. In annual terms it means an increase of almost 25 euros: you will go from paying about 510 euros to 534.29.
When the 21% VAT returns, which is what was taxed on energy until June 2021, that standard bill will become almost 6 euros per month more expensive, from the current 38.77 euros to 44.68 euros. Per year, the bill will increase by 77.72 euros, from 510 to 587.72 euros.
Review the contract and power
Selectra recommends, even more so with the imminent price increase, “review your electricity bill to ensure you have the lowest rate on the market and adequate power.” For clients who are in the regulated market (the PVPC), the comparator advises “to keep an eye on the lowest hours of the day, which these days are between 2:00 p.m. and 4:00 p.m.”
Users of the regulated rate pay a different price at each hour of the day, unlike those who have a contract on the free market. Most of them – except those whose price is indexed to the PVPC – pay a fixed amount for each kilowatt/hour consumed.
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