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Electricity and gas VAT returns to 21% on 1 June: how it could impact your bill
Starting 1 June 2026, your energy bill is changing once again. After several months of reduced tax rates, VAT on electricity and gas will return to 21% and the Special Electricity Tax (IEE) will go back to its usual rate.
The result? An increase that many households will begin to notice in upcoming bills, especially those with both electricity and natural gas supplies.
For an average home, the combined impact could amount to an extra €10 to €20 per month, depending on consumption, the contracted tariff, and each household’s energy habits.
Although the tax change has already been confirmed, there is still time to review your tariff, understand how it will affect your bill, and make a few decisions to help soften the increase.
The end of the tax breaks: what exactly changes from June onwards
The tax breaks on energy were introduced as an extraordinary measure to ease the impact of energy inflation on households and small businesses.
Since March 2026, consumers and businesses have benefited from:
- Electricity VAT dropped from 21% to 10% for eligible cases
- Gas VAT dropped from 21% to 10%
- The Special Electricity Tax dropped from 5.11269632% to 0.5%
- The tax on the value of electricity production was temporarily suspended
However, these measures were tied to changes in energy inflation. Following the latest inflation data, the Government has confirmed that the reduced rates will no longer apply from 1 June 2026.
In practice, this means a gradual return to energy bills with taxes at their usual levels.
You can find more information on how much you save on electricity bills with reduced VAT and review all the tax measures on electricity and gas in force in 2026.
How much your bill could increase: real and easy-to-understand examples
Tax changes can often feel distant… until they show up on your bill.
To better illustrate the impact, here are some example scenarios based on different levels of energy consumption:
|
Estimated consumption before taxes |
Situation |
Special electricity tax |
VAT |
Total bill |
Estimated difference |
|---|---|---|---|---|---|
|
Small household (€40) |
Current status |
0.5% of €40 = €0.20 |
10% of €40.2 = €4.02 |
€44.22. |
- |
|
From June |
5.1% of €40 = €2.04 |
€50.87. |
€50.87. |
+€6.65. |
|
|
Medium household (€70) |
Current status |
0.5% of €70 = €0.35 |
10% of €70.35 = €7.03 |
€77.38. |
- |
|
From June |
5.1% of €70 = €3.57 |
21% of €73.57 = €15.45 |
€89.02. |
€+11.64. |
|
|
Large household or business premises (€120) |
Current status |
0.5% of €120 = €0.60 |
10% of €120.6 = €12.06 |
€132.66. |
- |
|
From June |
5.1% of €120 = €6.12 |
21% of €126.12 = €26.48 |
€152.60. |
€+19.94. |
The higher your consumption, the bigger the impact of the tax change. That is why households with higher energy use will notice a more significant difference starting this summer, especially those with both electricity and gas supplies.
These calculations are indicative and may vary depending on consumption, the contracted tariff, and other regulated items included in the bill.
If you want to better understand where these taxes appear on your bill, you can read on how to find VAT and the Special Electricity Tax (IEE) on your electricity bill.
The change is not only about VAT: the IEE is also going back up
Although VAT is the most visible component, it will not be the only adjustment reflected in your bill.
Starting in June, three major tax changes will take place at the same time:
- Electricity VAT will increase from 10% back to 21%
- Gas VAT will also return to 21%
- The Special Electricity Tax will rise from 0.5% to 5.11%
And here is a key detail that many consumers are not aware of: VAT also applies to other items on your bill, including the IEE itself. That is why the combined effect can be greater than it appears at first.
|
Item |
Current status |
From June 2026 |
|---|---|---|
|
Electricity VAT |
10% |
21% |
|
IEE |
0,5% |
5,11% |
|
Gas VAT |
10% |
21% |
|
Estimated impact on an average household |
- |
An extra €10 to €20 per month |
What happens if your bill includes days before and after 1 June?
This is one of the most frequently asked questions. Even if a portion of the energy you consumed was used before 1 June, the VAT rate applied will depend on the invoice issue date.
In general, if the bill is issued in June, it will usually already include the 21% VAT rate, even if it covers consumption from earlier periods.
In addition, the impact is not the same in all cases:
- If you are on a fixed-rate tariff, the impact of the VAT increase in June is already partially absorbed, as the energy price remains stable throughout the contracted period.
- If you are on the regulated tariff (PVPC), you will immediately feel the impact of the VAT change in June, as the price varies depending on the market.
Why are the energy tax breaks ending now?
Although the measures were initially expected to remain in place until 30 June, the regulation included a key condition: their continuation depended on the evolution of energy CPI.
With energy prices moderating in recent months, the Government has confirmed the end of the tax breaks from 1 June 2026.
In other words:
- If energy inflation had remained high, the measures could have been extended.
- As prices have stabilised, the temporary mechanism approved during the energy crisis is being phased out.
What you can do before 30 June to prepare
Although tax changes are beyond the consumer’s control, there are still several decisions that can help reduce the impact on your next bill.
Review whether your current tariff is still the right one
Energy habits change constantly due to remote work, electric vehicles, new appliances, or simply different household routines.
That is why the weeks leading up to June can be a good time to check:
- Whether your tariff is still competitive.
- Whether you have the right contracted power.
- Whether you are actually taking advantage of cheaper hours.
You can explore available options at Endesa Electricity Tariffs.
If you have an electric car, try to charge it early
If you use an electric vehicle, planning some of your charging sessions before June can help you still benefit from the period with reduced taxation.
This is especially smart if you are planning long road trips or expect to drive more frequently during the summer.
Review your gas tariff before the next winter
Although gas consumption usually drops in summer, this can be a good time to review your conditions and prepare in advance for the colder months, especially if you use gas for heating, cooking, and hot water.
More information on Endesa Gas Tariffs.
Follow efficient consumption habits
Taxes aside, small daily habits continue to make a meaningful difference in energy consumption:
- Adjusting usage schedules.
- Avoiding phantom consumption.
- Checking air conditioning temperature settings.
- Improving the efficiency of some of your appliances.
These small adjustments often have a bigger impact on your monthly bill than expected.
You can also read on how to change your tariff before June with no commitment period or penalties.
FAQ
Will electricity VAT definitely increase on 1 June?
Yes. Following the latest energy CPI data, the Government has confirmed that the temporary tax breaks will expire on 1 June 2026.
How much could my bill increase?
It depends on your consumption and whether you have electricity only or both electricity and gas.
For an average household with both supplies, the combined impact of VAT and the IEE could be approximately an extra €10 to €20 per month.
Does the Social Bonus also end on 30 June?
No. The Social Bonus operates under separate regulations and is not directly linked to the temporary tax measures applied to VAT and the IEE.
You can find updated information about the Endesa Social Bonus here.
Can I change my tariff now so that the new price applies starting June?
Yes. In most cases, switching tariffs is free and there is no commitment period.
If you request the change before the end of May, the new price may apply in your very next billing cycle.
Will the IEE also increase in June?
Yes. The Special Electricity Tax is expected to return to its usual rate of 5.11%, up from the 0.5% rate applied over the past months.
While it may be less visible than VAT, it also directly affects the final bill amount.
Although taxes are only one of the factors influencing the final electricity bill, reviewing your tariff and adjusting your consumption habits can help you better manage the upcoming changes in June. Endesa will continue to provide updates on any regulatory changes affecting electricity and gas bills.
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Comparison of Electricity and Gas Tariffs
You don't need to adapt to Endesa's tariffs because they adapt to you. If you go to our catalogue you can compare the different tariffs for yourself. Or if you prefer, you can answer a few questions and we will take care of comparing all the different electricity and gas tariffs and then make a customised recommendation.
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