Feb 6, 2025
And now we're in February 2025, and many of us have received our electricity bills for January 2025 and were shocked by the price change.
Let's see why the price of electricity has increased.:
Refund of the general VAT rate:
As of 1 January 2025, the reduced VAT rate on electricity will cease to apply, in accordance with Royal Decree-Law 8/2023 of 27 December. This means that VAT has returned from 10% to a general rate of 21%, leaving behind a temporary reduction introduced in 2023 to cushion high energy prices..
Thus, the overall cost of electricity bills has increased due to the return to the flat tax rate. While this change is independent of individual consumption, it has a direct impact on the final price we pay..
Regulated prices have also undergone significant changes since January 2025.:
Tolls: A reduction of less than 0.5 €/MWh is expected , which implies almost no variation..
System charges: There will be a provisional increase of approximately €6/MWh, affecting both power and energy concepts.
Thus, although the difference in tolls is almost negligible, the increase in charges could translate into slightly higher bills for those with high consumption..
The cost of financing the Bono Social programme, which offers discounts to vulnerable consumers, will also increase.:
The cost will increase from €2.299/CUPS to €3.802/CUPS, an increase of 65%. This adjustment is provisional and could be modified in the coming months..
This increase will be passed on to the bills of all users, as it is passed on directly by the distributors, as specified in the contracts..
Dynamics of the consumer price index for electricity and gas
According to the latest data from the National Statistics Institute, the consumer price index (CPI) for electricity and gas stood at 2.4% until November 2024. This indicator reflects the evolution of energy product prices and serves as a reference for tariff revisions in 2025..
In summary, with all these changes in energy bills in 2025, it is important to stay informed to understand how they will affect your economy and plan strategies to help you optimise your energy consumption..