Electric bill
Electric bill
How to understand the receipts and how to pay less?
The electricity bill justifies the amount that the customer must pay for the supply of electricity to the marketer. Next, we will see the different elements that compose it and how to save on the electricity bill.
How to understand the electricity bill?
Understanding the electricity bill is essential to monitor our consumption and detect possible billing irregularities.
Knowing what each item we pay refers to on the electricity bill can help consumers reduce their energy costs and save a few euros a month on their bills.
Those in charge of sending the invoices to their customers month by month or bimonthly are the marketers.
What do we pay on the electricity bill?
The electricity bill, regardless of the electricity company, is made up of the following elements. Some of them are defined by the marketer itself and others are set by the Government, and are the following:
Power term.
Energy term or consumption term.
Equipment rental.
Tax on electricity.
VAT.
How to calculate the electricity bill?
To calculate the electricity bill you have to add all the concepts that we have mentioned in the previous point. Below we explain how to calculate the final price of each concept and the total cost of your electricity bill.
Power term
The power term is the amount that the user has to pay for the power they have contracted. It is calculated by multiplying the power term by the amount of contracted kW and the days that make up the billing period. It is a fixed amount, that is, it is always paid, even if no consumption is made.
How is the power term calculated?
Power term: Price of the kW * kW contracted * billing days
Example: € 0.1233 * 3.45 * 60 = € 25.52 (without VAT)
Energy or consumption term
The term energy refers to the energy consumed by a customer during a specified billing period. It is a variable concept and is calculated by multiplying the price of energy by the amount of kWh consumed.
The term of energy or consumption and the term of power include access tolls, an amount set annually by the Ministry and that consumers have to pay to cover expenses and maintenance of electrical infrastructures.
How is the energy term calculated?
Consumption term: Price of kWh * kWh consumed
Example: € 0.1349 / kWh * 583 = € 79.65 (without VAT)
Equipment rental
This concept is charged to all those clients who do not own their electricity meter. The marketer has the obligation to collect this concept because the meter is owned by the distributor.
How much does it cost to rent an accountant?
The price established by the Government for the rental of digital meters ranges between € 0.81 and € 1.36 per month.
Tax on electricity
It is a separate tax from VAT and must be paid by all consumers, regardless of whether or not they consume electricity. It is regulated by the Government and represents 5.113% of the sum of the consumption term and the power term.
How is the electricity tax calculated on the electricity bill?
Tax on electricity: (Power term + Energy term) * 0.05113
Example: (25.52 + 79.65) * 0.05113 = € 5.38
VAT on the electricity bill
To calculate the Value Added Tax (VAT), you just have to add the four concepts mentioned above and multiply them by 0.21.
How is the VAT calculated on the electricity bill?
VAT: (Power term + Energy term + Meter rental + Electricity tax) * 0.21
Example: (25.52 + 79.65 + 0.81 + 5.38) * 0.21 = € 23.38
Total amount of the electricity bill
The total amount of the electricity bill, after having added all the previous items, is as follows:
Total electricity bill
Power term: € 25.52
Energy term: € 79.65
Meter rental: € 0.81
Tax on electricity: € 5.38
VAT: € 23.38
Total: € 134.74
How to save on the electricity bill?
There are small everyday gestures with which consumers can save on their electricity bill.
- Switch to led bulbs.
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