He Official State Gazette (BOE) has published the Royal Decree Law that extends the social shield for vulnerable peoplethat is, they barely have income to cover minimum needs. In this sense, their electricity, water or gas, the so-called basic supplies, cannot be cut off until December 31, 2025.
At the end of the year the application of the VAT reduced on the electricity bill, so it will return to 21% permanently. The President of the Government, Pedro Sánchez, was in charge of chairing this new meeting between the ministers, making a subsequent assessment in which he spoke about the increase in pensions and other important measures to improve the state of well-being.
The rule will come into force tomorrow, since it was approved in the last Council of Ministers this year and has been published in the BOE a day later. Maintains measures to promote Sustainable mobility, more aid and tax exemption thanks to which energy savings are pursued.
Electric social bonus
The Decree extends the exceptional situation for which the electric social bonus, which is intended for vulnerable consumers and the severely vulnerable, which has been reinforced by continuing the measures that were taken when the war in Ukraine began.
Thus, the discounts that were originally set between 25% and 40% They were increased to 65% and 80% respectively as part of the Government’s response and where the ‘Iberian exception’ was included. This meant a saving of 5,000 million euros on the bill.
In June, the Executive decided to progressively return to normality, and in July of next year it will be completed. Now, there will be new and reinforced discounts, with a reduction of 35% instead of the 25% before the crisis and the severe vulnerable of 50% instead of the previous 40%.
The explanation given by Ministry of Ecological Transition and the Demographic Challenge has been that “this rule gives more room for this progressive adjustment, so that this new and reinforced level of normality will be reached as of January 1, 2026.”
Starting January 1, 2025, vulnerable consumers will have a 50% discount. As of July 1, it will be 42.5% and on January 1, 2026, the reinforced 35% will stabilize. Severely vulnerable consumers will have the 65% discount from January 1, 57.5% from July 1 and the reinforced 50% will stabilize in January 2026.
The VAT on electricity remains at 21% permanently
He VAT on electricity linked to the price of the wholesale market remains at 21% as of January 1, as sources from the Ministry of Finance confirm to Europa Press. In this sense, what was planned will be done with electricity taxes and at the end of the year the reduction declines.
Since those exceptional reductions in VAT on receipts that were carried out in the middle of the crisis, in 2024 the tax has been changing from 21% in general or 10% in the event that the electricity market price exceeds the threshold of 45 euros per megawatt hour (MWh) in the previous month.