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Government reduces VAT for pellets, briquettes and firewood to 5 percent until December 31, 2022

The Council of Ministers, at the request of the Ministry for the Ecological Transition and the Demographic Challenge, the Ministry of Finance and Public Administration, and the Ministry of Economic Affairs and Digital Transformation, has approved a Royal Decree-Law 17/2022, of September 20, with several measures in the energy field, such as the VAT reduction from 21% to 5% in supplies of natural gas, pellets, briquettes and firewood, with savings for consumers of some 210 million euros; the possibility that cogeneration temporarily abandon its regulated remuneration regime, so that the Iberian Mechanism is applied to it; or the creation of a new active demand response service that will increase the flexibility and security of the electricity system.

Source: expobiomasa.com

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