Friday, March 1, 2024

the surprise consumers got with the latest bill

The year 2024 begins with changes. Many households have already noticed this on their electricity bill and will continue to check it throughout the year.

VAT on electricity bills will go from 5% to 10% throughout 2024 in contracts that do not exceed 10 kilowatts of electricity, and as long as the monthly wholesale market price does not exceed 45 euros/MWh.

Natural gas will go from 5% to 10% until March 31. From that moment it will go back to 21%.

The Electricity Tax will go from 0.5% to 2.5% until March 31 and to 3.8% until June 30, 2024. From that moment it will return to 5.11%.

The changes responded to the arrival of the new PVPC regulated rate, affected by a reform imposed by the European Union. As a result, prices will be more stable, but not cheaper. The price is no longer determined by the daily electricity market and is governed by a series of monthly, quarterly and annual term products that are updated every month.

Message sent by an electric company to its subscribers warning of a change in regulation

The tax reduction reduced the average household bill (4.6 kilowatts/hour and 292 kilowatts/hour per month) with the PVPC rate last year. It stands at 723 euros for the whole year (60.26 euros per month), compared to 1,266 euros in 2022 and 949 euros in 2021.

As studied by the Organization of Consumers and Users (OCU), the 2023 bill would have risen to 871 euros (148 euros more) without reducing the VAT and the Electricity Tax.

Now the measures that led to this reduction of the bill are beginning to be eliminated. If the price in the wholesale market does not decrease, the electricity bill will rise again.

World Nation News Desk
World Nation News Desk
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