Note to consumer prices of energy - January 2022

By decision of the Ministry of Finance, value added tax on the supply of electricity or gas was waived if the taxable supply took place or the payment for which the tax was required was accepted in the period from 1 November 2021 to 31 December 2021. (see details in Journal of Ministry of Finance No. 34 of 20 October 2021)

According to the methodology for calculating the consumer price index (both HICP and CPI), changes in prices are reflected in the index according to the tariffs valid at the given time, including the currently applicable VAT rate. The distribution of advance payments and surcharges does not matter.

The current VAT waiver for energy for November and December was reflected in the calculation by a corresponding decrease in the price index for November and its regrowth in January 2022. It was based on the HICP methodology, which is also valid for the CPI. Net price growth (without effect of VAT changes) in month-on-month comparison would be 11.7% for housing (ECOICOP 04.5), 14.6% for electricity and 8.5% for natural gas.

Due to the enormous increase in electricity and gas prices, it was necessary in January to take into account a significant part of customers with fixed tariff prices when calculating the overall index. Therefore, the price increase was reflected in the index only in an adequate proportion. In the coming months, the phasing out of existing fixations will be taken into account.