The government will not prevent VAT on electricity bills from increasing to 21% this Friday

The government does not interfere In March, VAT on electricity bills will rise to 21%, that is, starting next Friday. When the reduction was applied first to 5% and then to 10%, the law already stated that the price per megawatt-hour had to be below 45 euros in order to maintain it. And in February, strong growth in renewables will see the month close below that level.

Given this situation, EL MUNDO has already stated today that the executive does not have any plan to avoid the increase, and the Minister of Economy Carlos Bodi confirmed this in a press conference after the meeting of the Council of Ministers. “Measures must continue“,” he noted, to which he added that “this is not only due to the recent evolution of climate conditions, but also to the high penetration of renewable energy sources due to the renewable energy commitments that are being adopted and are already having clear consequences.”

The reason for the aforementioned drop in wholesale market electricity prices is the effect of Storm Lois, which increased wind power generation with a significant presence of solar power. This means that, according to data from the Ibrian Energy Market Operator collected by Europa Press, the average wholesale electricity price in February is €41.25/MWh.