The price of electricity is once again at the center of the debate after the approval of a new government measure to alleviate household energy expenditure. The Government has reduced the VAT on electricity from 21% to 10%, a decision that is already included in the BOE and that will allow you to save between 5 and 10 euros per month on your bill. A decision that will have a direct effect on the bill.
The measure is part of a broader package approved in a context of international tension that has increased the price of energy in recent months.
The rise in the price of oil and gas internationally has had a direct impact on the cost of electricity.
The blockade of the Strait of Hormuz, a key route for energy transport, has caused a price increase that is already being passed on to the consumer.
Before this situation, the Government has approved a set of measures to contain the impact, among them the reduction of VAT on electricity.
How much is the discount on the bill
The reduction of VAT from 21% to 10% implies an approximate decrease of 9% in the final amount of the electricity bill.
In practical terms:
- A home with bills of between 60 and 110 euros monthly
- Can save between 5 and 10 euros per month
Although the figure may vary depending on consumption, contracted power, or type of housing, the effect will be immediate in most cases.
According to the estimates of the Ministry of Finance, this measure will mean a global saving of more than 539 million euros for consumers.
The reduction applies to electricity contracts with a power lower than 10 kW, which includes the vast majority of homes in Spain.
Additionally, it will also benefit users with special conditions, such as:
- Beneficiaries of the social bonus
- Households in a situation of vulnerability
- Consumers with aid against energy poverty
Other measures that affect the electricity bill
The VAT reduction does not come alone.
The plan also includes:
- The temporary suspension of the electricity generation tax (7%)
- The reduction of the special tax on electricity, which drops from 5.11% to 0.5%
These measures seek to reduce tax pressure on energy and contain the final cost for consumers.
Different estimates point to a visible impact on the monthly bill.
For example, in an average home with a contracted power of 4.6 kW and an annual consumption of 3,500 kWh, the bill could be reduced from about 80 euros to about 70 euros, according to approximate calculations.
Although the tax cut will have a direct effect, the final price of electricity will continue depending on external factors, such as the international energy market.
This means that savings may vary depending on the evolution of energy prices in the coming months.
