Electricity prices can rise by 20% in January in Hego Euskal Herria
- The measure of the tax reductions imposed by the Spanish Government will expire at the end of this year.
If it is not approved by emergency decree, a 20% increase in electricity prices is foreseen with the start of the new year in Araba, Bizkaia, Gipuzkoa and Navarra. Indeed, as of today, the restrictions are applied in both electricity taxes, but the duration of the measure will expire on 31 December.
Electricity VAT is currently 5%, but in the absence of exceptional measures historically it is 21%. Currently, the so-called electricity tax stands at 0.5%, but can rise to 5.11%.
Since June 2021 in exceptional cases
The savage increase in electricity prices is not news this morning. The Spanish Government recently took the first steps in June 2021. On this occasion, the VAT rate fell from 21% to 10% for all those with a contract equal to or less than 10kw. Then, in June 2022, it reduced that 10% to 5%, while the percentage of electricity tax went from 5.11% to 0.5%.
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