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Lusa - Business News - Portugal: Almost half people's electricity bill is taxes and fees




Lisbon,Nov.24,2020(Lusa)- Portugal was the fourth European Union (EU) country in the first half of the year with the highest component of taxes and fees on electricity bills, which represented 46% of the total paid by domestic consumers, the energy regulator (ERSE) reported on Tuesday.

According to an information summary made by ERSE based on data published today by Eurostat on energy prices until June, "the component of fees and taxes, which includes the IEG [Costs of General Economic Interest], in Portugal accounts for 46% of the total price paid by consumers", only exceeded in Denmark (66%), Germany (53%) and Finland (47%).

"The component of fees and taxes is the fourth highest in Europe, mainly due to the so-called IEGs, which are the result of energy policy options and represent 27% of the final price", ERSE said.

According to the regulator, for the remaining EU countries it is not possible to identify these costs in a disaggregated way of the rates and taxes since Eurostat does not publish this information.

Excluding tax rates, and comparing only the energy and network components for the consumer (in the consumption band, between 2,500 and 5,000 kilowatt/hour (kWh) per year, which is the most representative in Portugal), ERSE reports that "Portugal is among the countries where the energy and network component is lower, with prices lower than those of Spain and the EA [Euro area] and the EU".

"In the domestic segment, the energy and network component remains among the lowest in the European Union, corresponding to 54% of the final price", it states.

In the non-domestic segment, the energy and network component represents 70% of the final price (excluding VAT) and the fees and taxes component is the fifth highest in the European Union, mainly due to the IEGEI, which represent 29% of the final price (excluding VAT).

The regulator's analysis also shows that, in the first half of this year, Portugal recorded a fall in electricity prices in the domestic segment compared to the same period in 2019 and an increase in electricity prices in the non-domestic segment.

"For domestic consumers, higher average prices can be observed in Spain, in the Euro Area and in the average of European Union countries (around 12%, 7% and 0.5% higher than in Portugal). For non-domestic consumers only average prices in Spain are slightly lower than in Portugal", he says.

The average price in the DC consumer band (the most representative in Portugal for domestic consumers) fell by 1.4% compared to the same period in 2019, while in the IB band (the most representative for non-domestic consumers) there was an increase of 2%.

"Compared to Spain, the Euro Area and the EU average, Portugal shows a lower average price for both segments", ERSE notes, adding that "this price differential is sharper compared to Euro Area prices, with prices 6% above those of Portugal for domestic consumers and 13.6% above those of Portugal for non-domestic consumers".

PD/ADB // ADB.

Lusa


Agency : LUSA

Date : 2020-11-25 09:49:00







 

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