economy and politics

The price of electricity soars by 84.5% in June, causing VAT to drop to 10%

The price of electricity soars by 84.5% in June, causing VAT to drop to 10%

June 29 () –

The average price of electricity in the Spanish wholesale market during the month of June has exceeded 56 euros per megawatt hour, the second highest month in 2024, which represents an increase of 84.5% compared to May and will cause the VAT on electricity to fall again to 10% from 21% in July.

In accordance with the provisions of the regulations approved by the Government to deal with the increase in raw materials, the VAT to be charged on future invoices will be reduced by more than half as a result of a normalisation of prices in the market and closing the month of June above the 45 euro barrier.

The price of a megawatt hour closed June at around 56.08 euros, according to calculations by Europa Press, which is four times higher than the average of 13.67 euros in April, the cheapest month of 2024 and of the entire historical series dating back to 1998. In May, the average price was 30.39 euros/MWh.

Futures are on the rise and are trading at 76.9 euros/MWh for July and 82 euros for the fourth quarter, although they will fall for 2025, specifically to 69 euros, according to data compiled by OMIP.

REGULATED GAS RATE

Likewise, the rate of last resort (TUR) for individual natural gas without taxes will maintain the same price established in its previous review, the one in force since April 1, while the neighborhood TUR will increase between 0.61% and 0.87%, according to the resolution published in the Official State Gazette (BOE) with the prices for the next quarter.

Specifically, this maintenance of the rate is due to the fact that the variation in the price of the raw material between both dates is less than the 2% established by the regulations.

The new cost of basic gas in this review would be 2.63 euro cents per kilowatt hour (kWh), which represents a slight increase of 0.95% compared to the current rate. According to the Government’s calculations, the total expense of limiting the increase in gas has amounted to 688 million.

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