The electricity bill of the Spanish will rise 475 euros between 2021 and 2022

The electric bill has been one of the biggest reasons for concern in recent times. And it is not for less, since Bank of America already estimates that the average Spanish consumer will pay an extra 475 euros for electricity in the period between 2021 and 2022.

Given the escalation in electricity prices, as a result of the high costs of gas and CO2 emission rights in Europe, the Government of Spain has announced a plan that includes a reduction in special taxes from 5% to 0.5 %, a reduction in VAT on electricity from 21% to 10%, the suspension of the 7% tax on electricity generation, among others.

BofA experts calculate that these measures, if extended indefinitely, would mean between 3,000 and 4,000 million euros per year for Spanish domestic consumers, which is equivalent to about 170 euros per household. In other words, it would only compensate for a third of the increase in prices planned for the period for 2021-22.

The energy crisis does not only affect Spain, it is a common problem in Europe. Portugal has also announced bill reduction measures from revenues from CO2 auctions, from existing taxes on public services and the reduction of interruption costs.

However, because 45% of Portuguese energy is sold at fixed rates that are not affected by commodity prices, Bank of America believes that the underlying increase in the Portuguese electricity bill is quite low and the measures would compensate less than half of the price increase, marked at 180 euros.

Rest of Europe

If we look north, France has announced a freeze on gas rates from October 1, 2021 until the end of May 22, by virtue of a tariff deficit mechanism by which the Government will subsidize short-term bills. term and then recover the subsidy from consumers in the coming years. There will be a similar system for electricity, limiting price increases to 4% from February 2022.

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If prolonged indefinitely, it would be the most effective measures of all announced so far, since they would compensate two thirds of the price increase of about 730 euros planned for 2021-22.

In the case of Italy, the aid package would be equivalent to 8,000 and 9,000 million euros per year from VAT cuts and reductions in system costs, financed through CO2 auctions and the transfer of costs to the State budget. In his case, it would compensate a third of the increase in prices, which BofA establishes around 940 euros for the future.

In general, analysts estimate that the measures of the governments of the six main Western European countries (Spain, Portugal, France, Italy, the United Kingdom and Germany) will only cover a quarter of the energy expenditure of households.

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