Two types of tax are applied to your electricity bill. The first is VAT, which is 21% if you’re in mainland Spain or the Balearic Islands, 7% you’re in the Canary Islands (IGIC), and 1% if you’re in Ceuta or Melilla (IPSI). In addition, there’s the special electricity tax, which is 5.113% the power and consumption charge total. You’ll have to pay this whether or not you use any electricity. There is also a 7% tax on electricity production, which is passed on to the centers that produce the energy. However, this tax has currently been suspended by the government to mitigate against effects of the increase in electricity costs. It is not clear to what extent this tax affects customers.