Josefina Carbonell EN
Josefina Carbonell is Head of Marketing and Communication at Evergreen Eléctrica, with almost 4 years of experience in the energy sector, specializing in turning complex concepts into clear and useful content, providing a comprehensive view of the business — from lead generation to after-sales service with a close, honest approach aimed at helping individuals and companies make informed decisions.
As previously mentioned in another of our press releases, during the meeting of the Council of Ministers held on Wednesday, December 27, the Government has given the green light to the eighth set of anti-crisis measures. These measures aim to support Spanish citizens in the face of the economic challenges arising from the COVID-19 pandemic and the conflict in Ukraine. While many of the previously approved measures will be maintained, some, such as the reduction of VAT and other taxes on electricity, will undergo changes that will result in higher gas and energy bills by 2024.
Modifications in the Electric Taxes as of July 1, 2024
VAT – VALUE ADDED TAX
This month the VAT will return to 10% since, as we mentioned in our previous newsletter, if the price of energy exceeded 45 € in the wholesale market it would drop again from 21% to 10%. It is important to note that if the price of energy in the market goes down again, the VAT price will change again.
Who is affected by this measure?
- Holders of electricity supply contracts with a contracted power of 10 kW or less, regardless of the voltage level of the supply and the type of contract.
- Holders of electricity supply contracts who are recipients of the electricity social voucher and have been recognized as severely vulnerable or severely vulnerable at risk of social exclusion, in accordance with the provisions of Royal Decree 897/2017, of October 6.
SPECIAL TAX ON ELECTRICITY
As expected, the Special Tax on Electricity will also experience an increase. Starting July 1, 2024, this tax will increase from 3.8% to 5.11%.
Impact on Electricity Bills
These changes will mean a change in electricity bills for most consumers. It is important that users review their electricity supply contracts and consider energy saving measures to mitigate the impact of these variations.
For more detailed information on these modifications, you can consult the Official State Bulletin or contact your electricity supplier.
You can learn more about this topic in our blog posts:
More detailed information on these amendments can be found in the Official Gazette of the Spanish Government: https://www.boe.es/diario_boe/txt.php?id=BOE-A-2022-21799
Josefina Carbonell EN
Josefina Carbonell is Head of Marketing and Communication at Evergreen Eléctrica, with almost 4 years of experience in the energy sector, specializing in turning complex concepts into clear and useful content, providing a comprehensive view of the business — from lead generation to after-sales service with a close, honest approach aimed at helping individuals and companies make informed decisions.
