To support households with the cost of living, the Government is removing VAT from electricity bills this winter. Around 29 million households across the UK are expected to benefit from this change.

The new zero VAT rate for domestic electricity will replace the existing reduced VAT rate (5%). Anyone currently benefiting from the reduced rate will benefit from the new zero rate.

Some park home residents purchase their electricity from the park home site owner rather than directly from a licensed energy supplier. Where electricity is not individually metered and charged based on actual consumption, the electricity supply may be treated as part of the pitch fee and can therefore be subject to the same VAT treatment as that charge.

However, park home residents are protected from excessive charges by Ofgem's Maximum Resale Price provisions. These provisions prevent site owners from reselling energy at a higher price than they paid to the licensed supplier. Consumers are also entitled to request a breakdown of the site owner's costs, including electricity and/or gas charges, standing charges and VAT paid.

Consumers who consider they have been overcharged can claim against the reseller through the courts or tribunal services if their dispute cannot be resolved through negotiation. Such consumers can seek advice through this process from consumer protection bodies such as Citizens Advice.

To support households with the cost of living, the Government is removing VAT from electricity bills this winter. Around 29 million households across the UK are expected to benefit from this change.

The new zero VAT rate for domestic electricity will replace the existing reduced VAT rate (5%). Anyone currently benefiting from the reduced rate will benefit from the new zero rate.

Some park home residents purchase their electricity from the park home site owner rather than directly from a licensed energy supplier. Where electricity is not individually metered and charged based on actual consumption, the electricity supply may be treated as part of the pitch fee and can therefore be subject to the same VAT treatment as that charge.

However, park home residents are protected from excessive charges by Ofgem's Maximum Resale Price provisions. These provisions prevent site owners from reselling energy at a higher price than they paid to the licensed supplier. Consumers are also entitled to request a breakdown of the site owner's costs, including electricity and/or gas charges, standing charges and VAT paid.

Consumers who consider they have been overcharged can claim against the reseller through the courts or tribunal services if their dispute cannot be resolved through negotiation. Such consumers can seek advice through this process from consumer protection bodies such as Citizens Advice.

To support households with the cost of living, the Government is removing VAT from electricity bills this winter. Around 29 million households across the UK are expected to benefit from this change.

The new zero VAT rate for domestic electricity will replace the existing reduced VAT rate (5%). Anyone currently benefiting from the reduced rate will benefit from the new zero rate.

Some park home residents purchase their electricity from the park home site owner rather than directly from a licensed energy supplier. Where electricity is not individually metered and charged based on actual consumption, the electricity supply may be treated as part of the pitch fee and can therefore be subject to the same VAT treatment as that charge.

However, park home residents are protected from excessive charges by Ofgem's Maximum Resale Price provisions. These provisions prevent site owners from reselling energy at a higher price than they paid to the licensed supplier. Consumers are also entitled to request a breakdown of the site owner's costs, including electricity and/or gas charges, standing charges and VAT paid.

Consumers who consider they have been overcharged can claim against the reseller through the courts or tribunal services if their dispute cannot be resolved through negotiation. Such consumers can seek advice through this process from consumer protection bodies such as Citizens Advice.

To support households with the cost of living, the Government is removing VAT from electricity bills this winter. Around 29 million households across the UK are expected to benefit from this change.

The new zero VAT rate for domestic electricity will replace the existing reduced VAT rate (5%). Anyone currently benefiting from the reduced rate will benefit from the new zero rate.

Some park home residents purchase their electricity from the park home site owner rather than directly from a licensed energy supplier. Where electricity is not individually metered and charged based on actual consumption, the electricity supply may be treated as part of the pitch fee and can therefore be subject to the same VAT treatment as that charge.

However, park home residents are protected from excessive charges by Ofgem's Maximum Resale Price provisions. These provisions prevent site owners from reselling energy at a higher price than they paid to the licensed supplier. Consumers are also entitled to request a breakdown of the site owner's costs, including electricity and/or gas charges, standing charges and VAT paid.

Consumers who consider they have been overcharged can claim against the reseller through the courts or tribunal services if their dispute cannot be resolved through negotiation. Such consumers can seek advice through this process from consumer protection bodies such as Citizens Advice.

The scope and content of the Energy Independence Bill will be set out in due course when it is introduced to Parliament.

To support households with the cost of living, the Government is removing VAT from electricity bills this winter. Around 29 million households across the UK are expected to benefit from this change.

The new zero VAT rate for domestic electricity will replace the existing reduced VAT rate (5%). Anyone currently benefiting from the reduced rate will benefit from the new zero rate.

Some park home residents purchase their electricity from the park home site owner rather than directly from a licensed energy supplier. Where electricity is not individually metered and charged based on actual consumption, the electricity supply may be treated as part of the pitch fee and can therefore be subject to the same VAT treatment as that charge.

Data centre demand growth remains uncertain, reflecting factors including new connections, utilisation, efficiency improvements and wider AI adoption. The Department is working with NESO, Ofgem and industry to monitor developments and assess plausible demand scenarios and their implications for the electricity system.

Government is rapidly expanding renewable generation, providing access to increasingly clean power through the electricity network. Economy-wide demand projections will inform decisions on the generation, network and flexibility infrastructure needed to maintain a secure, affordable and decarbonised electricity system. In realising AI’s potential, the Government will also take seriously the potential risks identified by experts of its development.

DESNZ does not hold data on off-grid households. DESNZ works with Ofgem to ensure grid investment supports all communities, including rural and remote areas. Under Ofgem’s price control framework, network companies are investing in new electricity capacity reducing the cost of connections and ensuring access to energy for all communities.

The VAT treatment of electricity connection charges depends on the nature of the supply and the circumstances in which it is made. Where a grid connection forms part of a qualifying domestic supply of electricity, it is subject to the same VAT treatment as that supply.

VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Exceptions to the standard rate have always been limited and balanced against affordability considerations.

The independent energy regulator, Ofgem, is responsible for the connections charging framework and the allocation of charges between developers, network operators, and consumers. Government is not tracking the network reinforcement cost data associated specifically with new data centres.

However, the department recently consulted on measures to manage the volume of data centres connecting to the electricity network, to secure capacity for vital data infrastructure in a way that minimises impacts on the energy system. A response will be published in due course.

To support households with the cost of living, the Government is removing VAT from electricity bills this winter. Around 29 million households across the UK are expected to benefit from this change.

The new zero VAT rate for domestic electricity will replace the existing reduced VAT rate (5%). Anyone currently benefiting from the reduced rate will benefit from the new zero rate.

Some park home residents purchase their electricity from the park home site owner rather than directly from a licensed energy supplier. Where electricity is not individually metered and charged based on actual consumption, the electricity supply may be treated as part of the pitch fee and can therefore be subject to the same VAT treatment as that charge.

The Government’s recent announcement to cut VAT on electricity bills applies and is funded from 1st October 2026 to 31st March 2027.

Tax decisions will be taken at the Budget alongside an Office for Budget Responsibility (OBR) forecast. All decisions will be funded and consistent with the government’s fiscal rules.

The OBR publishes a log of substantive contact made between ministers, special advisers, private office and opposition MPs and the OBR on its website.

My Rt. Hon. Friends the Secretary of State and Mr Chancellor of the Exchequer have written to all energy suppliers on this issue. Officials in DESNZ and HM Treasury are also working with energy suppliers on a robust system that ensures this reduction is fully passed on to consumers.

Suppliers have confirmed they will pass the VAT reduction on electricity on to all of their customers, including those on fixed tariffs, and it remains the Government’s clear expectation that they do so.

The treatment of these specific charges falls under existing VAT mechanisms governed by HMRC rules.