Households across Spain are set to see electricity and gas bills rise again from June 1 after the government confirmed VAT on energy supplies will return to the standard 21% rate.

The reduced 10% VAT currently applied to electricity, natural gas, firewood, pellets and briquettes will officially end at the start of next month following a fall in energy prices during April.

The Ministry of Economy said the decision had been triggered by the ‘containment’ of electricity and gas prices in recent weeks.

At the same time, the special electricity tax – temporarily slashed to 0.5% during the energy crisis – will also return to its normal rate of 5%.

In a statement, the ministry said: ‘The fall in electricity and natural gas prices allows the gradual withdrawal of the measures affecting electricity tax and VAT.’

However, not all support measures are disappearing.

The government confirmed that the suspension of the tax on electricity production will remain in place until June 30, alongside subsidies for farmers and transport workers.

Enhanced discounts under Spain’s social electricity tariff will also continue, offering reductions of 42.5% for vulnerable consumers and 57.5% for severely vulnerable households.

Meanwhile, VAT reductions on fuel – including petrol, diesel and biofuels – will remain at 10% until at least June 30 due to continued price pressures linked to the war in Iran.

The reduced hydrocarbon tax rates and partial diesel rebates for professional drivers will also stay in force for now.

According to the Economy Ministry, fuel prices are still being pushed upwards by instability in the Middle East, although officials claim government measures have softened inflation by more than 16 percentage points.

Economy Minister Carlos Cuerpo said the government’s support package had prevented inflation from climbing around one percentage point higher than the current 3.2%.

He added that diesel prices remain below €1.70 per litre compared to almost €2 before the emergency measures were introduced.

Cuerpo also announced he will begin meetings next week to discuss what will happen once the current anti-crisis decree expires after June 30.

The package of emergency measures was originally approved in March as part of Spain’s economic response to the Iran conflict and rising global energy prices.

Electricity and gas bills in Spain to jump from June as VAT rises back to 21%

Households across Spain are set to see electricity and gas bills rise again from June 1 after the government confirmed VAT on energy supplies will return to the standard 21% rate.

The reduced 10% VAT currently applied to electricity, natural gas, firewood, pellets and briquettes will officially end at the start of next month following a fall in energy prices during April.

Spain’s Ministry of Economy said the decision had been triggered by the ‘containment’ of electricity and gas prices in recent weeks.

At the same time, the special electricity tax – temporarily slashed to 0.5% during the energy crisis – will also return to its normal rate of 5%.

In a statement, the ministry said: ‘The fall in electricity and natural gas prices allows the gradual withdrawal of the measures affecting electricity tax and VAT.’

However, not all support measures are disappearing.

The government confirmed that the suspension of the tax on electricity production will remain in place until June 30, alongside subsidies for farmers and transport workers.

Enhanced discounts under Spain’s social electricity tariff will also continue, offering reductions of 42.5% for vulnerable consumers and 57.5% for severely vulnerable households.

Meanwhile, VAT reductions on fuel – including petrol, diesel and biofuels – will remain at 10% until at least June 30 due to continued price pressures linked to the war in Iran.

The reduced hydrocarbon tax rates and partial diesel rebates for professional drivers will also stay in force for now.

According to the Economy Ministry, fuel prices are still being pushed upwards by instability in the Middle East, although officials claim government measures have softened inflation by more than 16 percentage points.

Economy Minister Carlos Cuerpo said the government’s support package had prevented inflation from climbing around one percentage point higher than the current 3.2%.

He added that diesel prices remain below €1.70 per litre compared to almost €2 before the emergency measures were introduced.

Cuerpo also announced he will begin meetings next week to discuss what will happen once the current anti-crisis decree expires after June 30.

The package of emergency measures was originally approved in March as part of Spain’s economic response to the Iran conflict and rising global energy prices.