Electricity VAT 2026: how much is it, how is it calculated and how does it affect you?

Read on to resolve all your doubts regarding dates, requirements, and the real savings you will see on your next bill.

Summary of electricity measures: keys to saving

• Reduction of VAT on electricity from 21% to 10% (reduced rate).
• Reduction of the Special Electricity Tax: from 5.1% to 0.5%.
• Suspension of the Electricity Generation Tax.

When does the reduction in VAT on electricity start to apply?

The entry into force of this tax cut will be contingent upon its publication in the Official State Gazette (BOE). The measure is expected to be effective for all electricity bills issued from 21 March 2026 onwards. The next step will be its vote in the Spanish Parliament on 26 March. 

It is important to remember that, as this is a tax that accrues at the time of consumption or the end of the billing period, the savings will be reflected in the billing cycle immediately following the entry into force date.

Savings comparison: how much will you pay now?

The difference between paying 21% VAT versus the reduced rate of 10% and the reduction in the Special Electricity Tax represents significant monthly savings. In the following table, you can see practical examples of how your total expenditure will change:

Do I have to call Endesa to apply the reduction?

No. It is automatically applied by law. At Endesa, we will adapt the billing system and apply the new percentage from the date set by the Government.

What happens if my bill includes days with VAT at 21%?

When there is a change in VAT right in the middle of a billing period, electricity companies cannot apply a single rule to all consumption. The bill must be divided into periods based on when that consumption occurred.

• Split the billing period into two parts: one before the change and another after. Each bracket contains what you consumed at each point in time.
• Apply different conditions to each bracket: the tax in force at that time is applied to each part.
• Pro-rate your fixed costs: according to the days belonging to each bracket.

It may be that your bill does not reflect what we have just told you. This could be because it coincides exactly with the change, in which case each bill will have the corresponding VAT; or because there is no exact reading on that date, and we make an estimate to divide the consumption.

Extra saving tip: fixed price or regulated market?

In addition to the tax cut, the best way to protect yourself against volatility in energy prices is to choose the right contract. If you prefer to avoid surprises on your bill, consider switching to a stable fixed-price tariff.

How does it work? You pay the same price for each kWh consumed 24 hours a day, regardless of whether the market price goes up or down.

By locking in a stable price, you shield yourself against the daily fluctuations of the wholesale market, as the price of your consumption will remain the same for the first year from your sign-up date. It is the ideal option for households that cannot adapt their consumption to off-peak hours (overnight) and are looking for a predictable bill every month to ensure their peace of mind.

Before taking out a stable fixed-price tariff, it is important to check if your contracted capacity is optimal. Adjusting this fixed bracket can mean additional savings of up to €50 a year.