Vattenfall customers pay an average of twenty per month more expensive despite lower VAT | living

Vattenfall customers pay an average of twenty per month more expensive despite lower VAT |  living

After July 1, customers of energy supplier Vattenfall on a variable contract will pay an average of €20 per month more expensive for electricity and gas. They won’t notice anything from the temporarily reduced value-added tax on energy that takes effect on the same date.

Prices in the energy markets have risen sharply in recent months, and these higher costs are partly borne by the company. Earlier this week, rival Essent announced that it would increase variable prices for gas and light by an average of around €50.

“While we find it troubling that we also have to implement an increase, the expectation is that our rate will remain well below the market average and current supply of new energy contracts. Our variable-price customers are benefiting from the fact that Vattenfall has smartly purchased energy from For them,” the power company said.

On July 1, the value-added tax on energy will be reduced from 21 to 9 percent. The measure to ease the pain of the energy crisis will continue until January 1, 2023. Depending on consumption, this will save a few tens to hundreds of euros. Vattenfall previously predicted that the VAT reduction would at most lead to a less sharp rate increase.

Cheaper

For customers with a fixed-price contract, nothing will change, except that the value-added tax will be reduced as a result of government interventions to ease the pain of rising energy prices. So it’s a little cheaper, until its perpetual contract expires as well.

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The amount people will actually pay after July 1 ultimately depends on the type of home. Customers will be notified of this in the coming weeks. Vattenfall assumes 1,200 cubic meters of gas and 2,250 kWh of electricity for average household consumption.

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