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VAT and grid fees by country: what the exchange price does not include
The exchange price is only the price of the electricity. On the bill it is usually a third to a half; the rest is grid, levies and VAT. This article explains what the map shows and what it does not.
What the bill consists of
- Energy – the exchange price (the one on the map) plus the retailer’s margin, usually a few cents per kWh or a fixed monthly fee.
- Grid service – the distribution and transmission operators’ tariff for the wires, transformers and the meter. Part of it is fixed (for the connection capacity), part per kWh; in some countries with day and night rates.
- Levies and taxes – electricity excise duty, renewable-energy support components, system services; different in every country.
- VAT – charged on the whole amount, including the grid and the levies.
So with the same exchange price, bills in Norway and Germany differ twofold – the grid, the levies and the tax differ.
VAT rates on electricity
The rates the map uses for the “with VAT” switch. Several countries apply a reduced rate to household electricity that differs from the standard VAT:
| Country | VAT on electricity | Note |
|---|---|---|
| Finland | 25.5% | standard rate |
| Sweden, Norway, Denmark | 25% | households in northern Norway are exempt |
| Estonia | 24% | standard rate |
| Poland | 23% | |
| Latvia, Lithuania, Netherlands | 21% | |
| France, Austria, Bulgaria | 20% | |
| Germany | 19% | |
| Croatia | 13% | reduced rate for electricity |
| Luxembourg | 8% | reduced rate |
| Belgium | 6% | reduced rate for households |
| Great Britain | 5% | reduced rate for households |
Rates change – if yours is different, or VAT is irrelevant for you as a business, you can edit it next to each country’s table on the map: type your percentage and all prices are recalculated.
How to switch VAT on the map
Open a country; above the table there is a “with VAT” switch. By default prices are without VAT, because that is how the exchange publishes them and how they compare across countries. Next to it you can also switch the unit: €/kWh, ct/kWh or €/MWh.
A negative price does not mean you get paid
On a windy day the exchange price can fall below zero. On an exchange contract you really do receive money for the energy itself in that period, but the grid, the levies and the retailer’s margin remain – the bill is smaller, not negative. For owners of solar panels a negative price is a signal that selling at that moment is not worth it.
Where to find exact figures
Grid tariffs and levies are set in each country by the regulator and the network operators – the exact rates are in your distribution operator’s price list or on your bill. The retailer’s margin is in your contract. The exchange part is on the map, with or without VAT.