Starting today, December 1, consumers will pay less for electricity consumption. This decrease will benefit around 5.2 million contracts, which corresponds to around 86% of low voltage customers.
It is a socially just and environmentally responsible measure, as it allows families, particularly large families, to save on the electricity bill, while contributing to the achievement of objectives included in the European Green Pact.
What changes from December 1?
An intermediate rate of 13% VAT will be applied to consumption up to 100 kilowatt hours (kWh) of monthly consumption. Consumption above 100 kWh is subject to the standard VAT rate of 23%. That is, the first 100 kWh of the month will be taxed at 13%, and what is consumed above that will be taxed at 23%. The measure applies to domestic customers with low voltage and power contracts up to 6.9 kVA, which represents the majority of families.
Do large families have an additional benefit?
Yes. As of March 21, 2021, households with five or more members will benefit from a 50% increase. For these families, the 13% VAT rate applies to consumption up to 150 kWh per month.
What will be the savings?
According to Government estimates, for families with a family of up to four elements, in the regulated market, paying an invoice of 25.64 euros per month will save 1.54 euros monthly, which at the end of the year represents a saving of 18.48 euros (contracted power 3.45 kVA, monthly consumption 134 kWh).
In the case of a family with five or more elements, on the regulated market, with an invoice of 49.80 euros, the monthly savings will be 2.31 euros per month, which at the end of the year represents a savings of 27.72 euros ( contracted power 6.90 kVA, monthly consumption 262 kWh).
What do I need to do to benefit from the reduction?
The reduction of the VAT rate to 13% for the first 100 kWh consumed in the month is automatic. Thus, the electricity bill for December will already reflect this positive change in the bills without the consumer having to take any action.
In order to benefit from the increase from March 2021, households with five or more members must demonstrate this condition with their electricity supplier, by means of a written application and one of the following documents:
a) IRS statement referring to the most recent current year, proven to have been submitted and validated. If the Claimant is married or de facto married, both IRS declarations must be submitted, unless he has opted for joint taxation under the terms of paragraph 2 of article 59 of the IRS Code;
b) Municipal Large Family Card;
c) Declaration by the Parish Council proving the household;
d) Last invoice for the water supply in the name of the holder of the energy contract, which includes the application of the family water tariff.
Does this measure accumulate with the reduction of VAT on the contracted power?
Yes. This measure complements the reduction of the VAT rate to 6% in the fixed component of the network access tariffs for electricity supplies corresponding to a contracted power not exceeding 3.45 kVA, which came into force on July 1, 2019 .