Lynn R

Pedro Sánchez has announced today that from 1 January, IVA on electricity bills will go up to 10% and stay at that level until the end of next year (which is better than it going back up to the pre-cost of living crisis level of 21% in one go). The reduction in IVA on gas bills will only continue until next Spring, however. Reduced IVA on basic foodstuffs, and help with public transport costs, will continue for now.

El Gobierno mantiene la mayoría de las ayudas a hogares pese a la caída de los precios energéticos | Economía | EL PAÍS (elpais.com)

Barriej

It is what it is unfortunately, but we here in Spain are still massively better off than in the Uk and other places.
Our electric bill averages around €48, my son pays nearly £200 a month...

Lynn R

I had a look at my latest bill on the Iberdrola website today, and very helpfully the total I have spent in 2023 was displayed - €668. I remember that just before I left the UK towards the end of 2006 I had been paying 60 pounds a month for gas and electricity on a dual fuel tariff, so an annual total of 720 pounds. So I am still, after 17 years, paying less now for domestic energy than I was then.

Fred James

The cost in Spain has stayed reasonably static compared to the UK where it is now almost three times more expensive per unit. Our bill has been the same for the last 10 years, to some extent due to suitably timed changes of supplier.

I’m pleased that the IVA is going to continue to be at a reduced rate. Until a few months ago I was paying the full 21% as my potencia was over 10kw. I have reduced it to 9.9kw so it is now at the lower rate.

I have also just installed 10kw of solar panels so it will soon cost me zero! The subsidies are now so huge that it seems silly not to go solar.

spainrico

Thanks Lynn.

My average Iberdrola bill was 37,68€ in 2023 - I have electric water heating and usual appliances but use butano for my main heating.

Lynn R

Consumers are going to see their bills rise again from today onwards as IVA will go up from 10% to 21% - because the cost of electricity in the wholesale market has dropped below €45 per mwh (even though those of us paying a fixed unit cost for electricity won't see any reduction in that).

El IVA de la luz subirá al 21% desde el viernes tras descartar el Gobierno mantener la rebaja (elconfidencial.com)

Fred James

To clarify the UK/Spain cost difference, A unit of electricity in the UK has just been reduced to 27p. In Spain it is now 11 centimos - about a third of the price.

1sexsmith

Yep got mine last week and it was around 12 euros more. Plus on 1st the new price for the Iberdrola plan estable changed and is higher so my bills are definitely going to be higher. Can't be escaped.

Lynn R

I do think it's misleading for the energy companies to claim that their rates won't increase when you take out this type of contract, when it is stated in the terms and conditions that they can apply an increase in line with the IPC on 1st January each year. It's not just Iberdrola (I am with them too), all the companies I have checked say the same. The unit cost the energy companies are now offering is 5 cents per kwh lower than what I am now paying (which doesn't sound much but could add €10 to the monthly bill, then there is 21% IVA and the 5% electricity tax on top, so over a year it might be worth switching again. However Iberdrola have been a lot better at issuing the bills on time than my previous supplier, Naturgy, was and I am always reading horror stories about the problems people have trying to get bils out of Energia XXI (Endesa) so maybe better the devil you know.

1sexsmith

Yes I agree. I thought the Iberdrola estable plan fixed mine but as you say it is only fixed until the next revision. Still it doesn't really matter who you use- after the usual offer to attract you expires you get the same conditions as everyone else and as Iberdrola is the big one they are easier to deal with than some of the others.

DLC

From experience Endesa has some IT problem with its billing, once you miss a bill you could go for six months without anything then six bills are generated one day after the other. And you have to be on top of them reminding them from time to time.

snikpoh

I've just been told by my company (Gana Energia) that the prices are coming down substantially on 1st April. This will far outweigh the increase in IVA

Lynn R

Thanks for that, I guess it is logical that prices (for new contracts presumably, and existing customers would have to switch suppliers to take advantage of the lower prices if they were paying a fixed rate) would come down if the wholesale price of electricity has dropped so much. I will hold fire on making a decision on whether to switch and see what happens. Are Gana Energia a good company to deal with?

snikpoh

I am an existing customer not on a fixed deal

1sexsmith

Just got my March bill and it's 64 € for 180 kWh. I live in around 50m flat and have no electric heating just water heater. Normally since the pandemic etc I was around 37€ a month. I guess the new amount is that IVA is now back to a whopping 21 %
​​​​