VAT charge on Energy bill

phozy888

Hi Guys,

wanted some advice if possible. My electric rates are here : single rate & London

cooperativeenergy.coop/siteassets/tariffsproducts/my-co-op-single-elect-may-19/my_co-op_lite_single_elec_may_19.pdf

The rates state VAT is included however on my bill im charged 5% VAT. Should I be paying this if my rates include VAT already ?

Thanks

D_M_E

Look at the rates on the link then look at the rates on your bill.

They should be different - the rates on the link you posted will be inclusive of VAT and the rates on the bill will be without VAT and will be lower - suppliers (or most of them) add the VAT as a final calculation when the rest of the bill has been done.

wavelets

Yes, unfortunately VAT on domestic fuel supplies is indeed currently 5%

You can thank the Tories for that!

In fact, they introduced it at 8% and were hoping the following year to raise it to the standard vate (currently 20%)

Fortunately the Tories were defeated in this attempt, and almost as soon as Labour got in a couple of years later, they reduced it to the legal minimum of 5% where it has remained ever since.

Once we complete Brexit, we should no longer be constrained by the 5% legal minimum, and so the rate could, in theory, be reduced back to 0% by the government

Perhaps remember this come the next General Election?.

[Deleted User]

Hi,

in your link the single rate & London is 11.56p incl vat.

So, without vat that will be 11.01p, which should be on your bill.

phozy888

The pence per KW on my bill ex vat is more then their listed price in vat, but the daily standing charge looks ok at 26.093 + 5% vat = 27.397

so 1kw price should be 10.98 ex vat

Im just double checking before I call them up

My BIll::

Electric Charges
My Co-op Lite Single Elec May 19
Electricity Unit Charge 1,080 at £0.1184 per kWh £ 127.87
Electricity Standing Charge 110 at £0.26093 per day £ 28.70
Total cost of Electric used: £ 127.87
Total cost of Standing Charge: £ 28.70
Total cost of electricity supplied (excluding VAT) £ 156.57