- Electricity prices will rise by 2.1% in January 2025
- The increase will be offset by a 3.6% decrease in network access tariffs and a reduction in VAT on electricity
- The first 200 kWh per month will be taxed at 6% instead of 23%
- About 870,000 households and small businesses in the regulated market will see an average increase of 2.1% in electricity prices
- For a typical family of four, the monthly bill will increase by 1.60 euros
- For a couple without children, the increase will be 64 cents
- A new government measure effective from January 1, 2025, will reduce the VAT on electricity, benefiting families
- Families consuming up to 200 kWh (300 kWh for large families) will benefit from the reduced VAT rate
- Despite the price increase, monthly bills will decrease by 85 to 91 cents due to the VAT reduction
- The average bill for a family of four will be 94.75 euros, and for a couple without children, it will be 36.64 euros in January 2025
- The Minister of Environment and Energy expects overall lower prices next year despite the 2.1% increase
- Network access charges are expected to decrease, potentially by about 9% in medium voltage
- The reduction in VAT on energy was approved by the Assembly of the Republic
- In June 2024, the regulator increased network access tariffs due to lower than expected wholesale electricity prices earlier in the year
- All consumers pay network access tariffs without exception
Source: jornaldenegocios.pt
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
