How will the 10% VAT reduction affect the electricity bill: what savings will it mean?
If all predictions come true, VAT on electricity will drop again in July: everything indicates that The average price during the month of June will exceed 45 euros per megawatt/hourthe limit of the government decree establishing the measure of the VAT reduction electric when exceeding this threshold.
When he falls average electricity price In February, below 45 euros/MWh, the VAT was raised again to 21%, and now when it exceeds that same threshold again, it is lowered in July to that limit. This dynamic will continue until December, because, according to current law, the VAT on electricity will return to the ordinary rate definitively in January 2025.
The average electricity price for June stands, until today, at 51.4 euros per megawatt/hour. What will the VAT reduction to 10% mean and how much will it save each household on average?
The average savings that it will mean in homes
For this month of July, therefore, the VAT on electricity will be reduced to 10%, which will alleviate the rise in prices in recent weeks. According to the Organization of Consumers and Users (OCU), the VAT on electricity will be reduced to 10%, which will alleviate the rise in prices in recent weeks. average bill of a home with PVPC rate and an average consumption (with 4.6 kW contracted and about 292 kWh of consumption per month) would be, with the current price and the VAT reduction, about 54.44 euros.
This allows us to deduce that The VAT reduction will allow Spanish households to save, on average, 5.44 euros. A saving that will have a special impact for households with a fixed rate: they will benefit from a reduced VAT without having suffered an increase in the price of their bill.
