The Zero Environmental Association defended on Friday as essential the reduction of VAT in home electricity to 6%, to circumvent the “unacceptable distortion” that makes electricity cost twice the natural gas.
Analyzing the regulated prices of the electricity and gas bill (Natural Piped and Butane, in Bottle) the association reveals, in a statement, that there is an “unacceptable distortion in comparative costs to the detriment of electricity, which contradicts decarbonization objectives, because gas is 100% fossil and electricity is 70% renewable”.
It concludes Zero that the fact that electricity is much more expensive than fossil gas in the residential sector “is an obstacle for decarbonization.”
He adds: “In order to encourage the generalization of electricity use in replacing fossil gas in household homes in Portugal, Zero proposes that VAT to apply to all installments of electricity billing to electricity contracts up to 6.9 kVA (kilovolmpere) from contracted power to 23% to 6%”.
The comparison made by the association took into account the most common hired powers in electricity in the domestic sector (up to 6.90 kVA) and the first level of gas consumption (70% of contracts), as well as other specificities, such as the social tariff.
Analyzing the data, zero says that the price of electricity (0.1658 €/kWh) costs more than double the fossil natural gas (0.0785 €/kWh), the difference being even greater in the case of social fare beneficiaries, with the electricity costing almost three times more. Even in the case of gas in cage, the differential remains, with the electricity costing about 1.5 times more.
In the analysis, zero also compares the so-called kWh (kilowatt-hour) which is effectively used (useful kWh) by the equipment (the gas stove that has an efficiency of 50% and the 90% induction plate) to say that the electricity to heat water is more expensive than gas (except on heat pump).
“When we compare daily charges, the disadvantage of electricity is even more substantial: 4.1 times,” according to the statement, in which the state is attributed to the main reasons for distortion.
The state, with the support of the European Union, made large investments in gas networks, “indirectly subsidizing the consumption of pipeed fossil gas”, and in the case of the electricity network this does not exist, being the invoice, by community imperative, overloaded with investments in the necessary maintenance and reinforcement of the network, justifies zero.
In the statement, the association also considers the E -lar government program to replace electricity gas appliances as “a step in the right direction of the reduction of greenhouse gas emissions.”
Also by doing the bills, Zero says that the E -lar program allows at least seven years of savings in the global energy invoice and adds that, in order to have a greater advantage of the program, it is necessary to quickly end the price difference between gas and electricity, “an expected result if there are green fiscal policies reflecting climate goals.”
In order to make electricity more accessible, it is necessary, it argues that the regulatory entity of energy services () review the methodology for calculating electricity and fossil gas prices in regulated components.
And it asks the government and parliament to show in the next year’s state budget that will adopt measures that eliminate all direct and indirect subsidies to the consumption of fossil gas, and make a progressive increase in the value of Petrolyfed Products (ISP).
Fossil gas cannot continue to be about twice as cheaper than electricity and with daily charges that may be four times smaller, alerts to zero.
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