As electricity prices reach an historic high the Spanish Government has introduced a 11% cut in the IVA on electricity bills:
IVA on the bills now stands at 10% (from 21%) and this reduction will remain in force until December 31 2023 or for as long as the price of electricity is more than 45 euros a MWhour.
Taxes on the production of electricity, which form part of the standing charges on your bill and are currently set at 7%, will also be temporarily suspended.
The Government estimates these reductions will save consumers with 10kw or less contracted, 12% on their bills.
Electricity prices have risen to an historic high of 94.63 euros per MWhour on the markets, the third highest price ever. This represents an annual increase of between 27.53 euros and 88.11 euros per household, including standing charges.
