VAT charged on electricity bills.

  sunnypete 10:35 27 Jan 2014

Just had a kind letter from my electricity supplier (we don't have gas) letting me know my expected usage and costs for the next twelve months. As I thought, the figure includes a sum of £62.76 for VAT. Rather makes a nonsense of the PM's promise to reduce bills by up to £50...

  Mr Mistoffelees 11:00 27 Jan 2014

"Rather makes a nonsense of the PM's promise to reduce bills by up to £50."

Scammeron has already done that by quietly letting the promise drop and hoping we won't notice.

  Pine Man 11:42 27 Jan 2014

Sunnypete/Mr Mistofflees

The lack of reduction in fuel bills is nothing whatsoever to do with Cameron.

His government introduced the reduction BUT many providers are NOT passing it on.

  Pine Man 11:43 27 Jan 2014

Here is the link I forgot.

click here

  Woolwell 11:48 27 Jan 2014

The Government (of any colour) cannot reduce the VAT rate of 5% of domestic fuel. That is the minimum rate set by the EU.

  BT 12:09 27 Jan 2014

Good job it is only 5% or that £62.76 would have been £251.04

  fourm member 12:31 27 Jan 2014

Are you saying you never knew before that there is VAT on electricity?

  oresome 13:02 27 Jan 2014

The argument put forward by some suppliers is that those on fixed price tariffs won't benefit from the £50 green subsidy reduction because they were 'protected' from recent increases.

Probably the majority of users now opt for fixed price tariffs to aid budgeting for the contract period.

  spuds 13:13 27 Jan 2014

I am not in the least surprised what happens with our fuel bills nowadays.

What I did find interesting was an article in my local newspaper the other evening. E.oN have been sending out bills to people for gas charges, yet the people involved did not use gas, because the council had stopped people using gas in council housing blocks, due to the risk of explosions etc. Their main supply is electricity only.

Apparently the gas charge was a recently re-introduced standing charge for having the old disconnected meters still on the premises.

Strange how some people pay bills without checking what they are paying for first?.

  sunnypete 13:27 27 Jan 2014

My point is, if the Government really wanted to help with our power bills they would take VAT off electricity and gas...and DON'T tell me EU regulations won't allow this...

  fourm member 13:45 27 Jan 2014

I fail to see what the difference is.

'We're cutting your bill by removing a subsidy.'

'We're cutting your bill by reducing the rate of VAT to have the same effect as removing a subsidy.'

Are you just ranting about VAT in general?

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