Power utility PPC will retroactively implement a VAT reduction for electricity bills, from 13 percent to 6 percent, as of May 1 rather than a May 20 starting date set by related legislation, PPC sources have informed.
PPC’s administration is anticipating an improved collection record for its unpaid receivables as a result of the VAT rate reduction on electricity. The unpaid receivables figure at PPC is currently estimated to be 2.5 billion euros.
Electricity consumers across the board are expected to collectively save approximately 270 million euros as a result of the VAT rate reduction.
As the dominant electricity retailer, PPC, serving roughly 7 million customers, constitutes the biggest chunk of this total amount. Its customers stand to save approximately 210 million euros.
On an individual level, PPC customers can expect to each save over 50 euros per year, according to PPC chief executive Panolis Panagiotakis.
The reduced 6 percent VAT rate applies to all surcharges included in electricity bills except for municipal charges.