Business The OCU asks to lower the VAT of electricity...

The OCU asks to lower the VAT of electricity to 10% and a revolution in the bill

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The Organization of consumers and users (OCU) has demanded that the new Government complete the proposal of the National Commission of Markets and Competition (CNMC) to reduce and restructure tolls with a complete review of the other charges in the electrical system. It has also submitted seven proposals to lower the bill, including lowering the VAT that is applied to electricity from 21% (general rate) to 10% (reduced rate).

In a statement, the organization criticizes “the lack of transparency” of the Ministry for Ecological Transition on charges of the electrical system, “more when the CNMC has already submitted its proposal for tolls”, and considers those “delays and lack of information “Of the cabinet directed by Teresa Ribera on the changes in the next electricity tariff” are generating a climate of confusion and uncertainty in the consumer



“Just what is least needed in a sector characterized by its complexity and which is also among the most expensive in the European Union,” he adds.

The sector is still pending the reorganization of tolls
(Agustí Ensesa)


Prices

The organization asks for more information about the new rates

The OCU recalls that the CNMC, in accordance with the new powers attributed to it last year, has already submitted its final proposal on electric tolls, with a cut raised in the remuneration of the transport and distribution activity that would mean a reduction 1.5% on the electricity bill of an average household.

Likewise, the regulator’s proposal includes a new tariff structure with three sections (valley, flat and peak hours), as well as the possibility of contracting two different powers, with a very reduced price for the valley schedule, among other measures. However, OCU believes that this proposal “is difficult to assess” as long as the plans of the Ministry regarding the charges of the electrical system are not known.

Light counters in a building

Light counters in a building
(Llibert Teixidó)





Electricity

Seven measures to reduce the bill

In addition, the association proposes a new battery of seven measures to the new Executive to reduce the electricity bill, which includes considering electricity as a basic, essential service, thus reducing the VAT currently applied from 21% to 10%; Eliminate the Electricity Tax from the invoice, or look for alternatives to reduce extra peninsular electricity generation cost overruns, transferring them, for example, to the General State Budget (PGE).

Among these measures, it is also recommended to transfer the bulk of the charges to the energy term, instead of the power, or ensure that the distribution of the charges of the electrical system are proportional to consumption.



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