Spanish Prime Minister Pedro Sanchez has announced that the reduction in the VAT rate on electricity supplies to 10% will be extended to 30 June 2022, after which the rate will revert to 21%. The government is also extending the suspension of the 7% tax on the value of electricity generation and the reduction of the special electricity tax from 5.11% to 0.5%. The reductions were first provided in 2021 and subsequently extended to 30 April 2022 in response to rising electricity costs.