Royal Decree-Law 7/2026: New tax measures to mitigate the impact of the energy crisis stemming from the conflict in the Middle East

Impact of RDL 7/2026 on Energy Taxation: What Changes in Your Electricity and Gas Bill

The recent approval of Royal Decree-Law 7/2026, within the framework of the Comprehensive Response Plan to the Middle East Crisis, introduces a series of temporary fiscal measures aimed at reducing energy costs for households, businesses, and self-employed workers. 

These measures have a direct impact on electricity and gas bills, significantly lowering the tax burden over the coming months. Below, we analyze in detail what changes, who is affected, and how this translates into real savings

Reduction of VAT on Electricity and Gas

One of the main measures is the reduction of VAT from 21% to 10% on electricity and gas supplies.This reduction applies to all contracts with a contracted power of 10 kW or less, which includes the vast majority of households and small businesses. Validity: until June 30, 2026.

^{What does this mean?}

A direct reduction in the total bill amount, since VAT is applied to the entire set of billed items.

Reduction of the Electricity Tax (IEE)

The Electricity Tax is exceptionally reduced to 0.5%, one of the lowest levels allowed under European regulations.

• Validity: until June 30, 2026.

• Impact: Although less visible to consumers, this reduction helps lower the base cost of electricity.

Reduction of the Hydrocarbons Tax (IEH)

For gas, a reduction in the Hydrocarbons Tax is established to €0.00108/kWh, in line with minimum legal thresholds.

• Validity: until June 30, 2026.

• Impact: This measure reduces the cost of natural gas, especially relevant for heating and business consumption.

Automatic Application: No Paperwork Required

One of the major advantages of this fiscal package is that it is applied automatically. This means:

• No need to apply for any aid

• Applies to both new and existing contracts

• Savings are directly reflected in the bill

_{Who Benefits from These Measures?}

These measures apply to:

• Residential customers

• Self-employed workers

• Companies

• Homeowners’ associations

The RDL 7/2026 represents a significant reduction in energy taxation, particularly for households and small consumers. The decrease in VAT and special taxes allows for immediate savings without administrative procedures, although for a limited period.

For consumers, this is a good time to review contracts and optimize energy consumption in order to make the most of these measures.

Source: RwC Energy Partners Team