Temporary VAT Reduction on Electricity Bills
A Government Support Measure for Eligible Electricity Customers
From 1 October 2026 to 31 March 2027, eligible customers will benefit from a temporary reduction in VAT on electricity charges. Customers who are eligible to pay 5% VAT on qualifying electricity supplies will instead pay 0% VAT during the scheme period.
This Government initiative has been introduced to help reduce energy costs over the winter months and provide additional support amid ongoing cost of living pressures.
What's Changing?
The Government has announced that VAT on eligible electricity supplies will be reduced from 5% to 0% for a six-month period.
VAT Rate Changes
| Period | VAT Rate |
|---|---|
| Before 1 October 2026 | 5% |
| 1 October 2026 to 31 March 2027 | 0% |
| From 1 April 2027* | Subject to Government guidance |
*Unless further measures are announced by the Government.
Am I Eligible?
The VAT reduction applies to customers who qualify for the reduced domestic electricity VAT rate.
Eligibility is determined in accordance with Government regulations and HMRC guidance subject to VAT notice 709/19.
How Will the VAT Reduction Be Applied?
If you are eligible, there is no need to apply.
The reduced VAT rate will be applied automatically to qualifying electricity charges from 1 October 2026. Eligible customers will see the change reflected on their electricity bills during the scheme period.
TotalEnergies will apply the VAT reduction in line with the final Government guidance and applicable regulations.
Need Help?
If you have questions about your electricity account, billing arrangements or energy supply, please contact your dedicated Account Manager.
Important Information
The temporary VAT reduction is a Government policy measure. TotalEnergies is responsible for applying the change to eligible electricity supplies in accordance with the official guidance and legislation.
Eligibility is determined by the relevant regulatory requirements. If you are unsure whether your supply qualifies, please review the supporting guidance documentation before contacting us.