Measures against the energy crisis in Spain: how do they benefit me?

Jan 12, 2023 | Current affairs, Featured, Post, Thursday Daily Bulletin, Tradition

This year, 2023, the Government’s agreements adopted last year to reduce electricity bills and guarantee essential supplies to vulnerable groups will remain in force.

Measures against the energy crisis in Spain

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The Council of Ministers agreed on 27 December to extend the measures in place through 2022 to continue to tackle the price increases caused by the war in Ukraine and to protect consumers in vulnerable energy situations, so that they have guaranteed access to electricity, gas and water.

How long does the energy bill reduction last?
The reduced Value Added Tax (VAT) to 5% will last until 31 December 2023 for electricity, gas, biomass for heating and wood for firewood.
The reduction of the special tax on electricity to 0.5% and the suspension of the tax on the value of electricity production, which impact lower electricity bills, will also be maintained until that date.

How do I know if I have the benefit of the VAT reduction on electricity?
It is aimed at holders of electricity supply contracts whose contracted power (fixed power term) is less than or equal to 10 kW, regardless of the voltage level of the supply and the type of contract when the arithmetic average price of the daily market corresponding to the last calendar month prior to the last day of the billing period has exceeded 45 €/MWh.
It is also received by holders of electricity supply contracts who are recipients of the bone social de Electricidad and are recognised as severely vulnerable or severely vulnerable and at risk of social exclusion.

How will the last resort tariff for natural gas be revised?
In order to contain the impact of the price of gas on the final bill of small consumers, in the reviews of the price of the tariff of last resort for natural gas (TUR) in 2023, the 15% limit on the maximum increase in the cost of the raw material in its calculation formula will be maintained.

Can essential supplies be suspended?
Until 31 December 2023, electricity, natural gas and water supplies cannot be suspended for those consumers who are vulnerable, severely vulnerable or at risk of social exclusion.

Vulnerable consumers are considered to be natural persons who own an electricity supply point in their usual dwelling, who subscribe to the voluntary price for the small consumer (PVPC), and who meet the requirements established in articles 3 and 4 of Royal Decree 897/2017, of 6 October, which regulates the figure of the vulnerable consumer, the social bonus and other protection measures for domestic electricity consumers.

To accredit the condition of the vulnerable consumers to the natural gas and water supply companies, it will be sufficient to present the last electricity bill showing the receipt of the electricity social voucher.

How do I apply for the Bono social eléctrico?
Vulnerable consumers can benefit from a discount on their bill called Bono social, which can be requested by telephone, e-mail, ordinary mail or fax from one of the reference suppliers, who are obliged to offer and finance it.

The Bono social is already allowing around 1.2 million households to receive an electricity bill similar to that before the crisis.

What is the percentage of the Bono social eléctrico discounts?
Since last October and throughout the year 2023, the discounts on the social voucher are set at 65% for vulnerable consumers and 80% for severely vulnerable consumers.

How do I apply for the Temporary Energy Justice Voucher?
Also until 31 December 2023, on an exceptional and temporary basis, low-income households particularly affected by the energy crisis will be able to take advantage of the social voucher for electricity. It will involve the application of a 40% discount on the voluntary price for small consumers (PVPC).

Individuals with an income equal to or less than 2 times the Public Multiple Effect Income Indicator (IPREM) for 14 payments and more than 1.5 times the IPREM for 14 payments may apply for this energy justice voucher for their main residence, with the right to contact the PVPC. This is established in article 10 of Royal Decree-Law 18/2022, of 18 October.

In order to accredit compliance with the established requirements and apply for this voucher, the consumer shall send a reference supplier the application form established in Annex I of Order ETU/943/2016, of 6 October, together with the supporting documentation defined in article 2 and, where applicable, in article 3 of the aforementioned order.

The beneficiaries of this temporary voucher may not be beneficiaries of the thermal social voucher.

What is the Bono social térmico?
The beneficiaries of the electricity social voucher can also be beneficiaries of the social voucher for thermal uses created in 2018. This aid, for heating, domestic hot water or cooking, is paid in a single annual payment and its amount depends on the degree of vulnerability and the climate zone in which the habitual dwelling is located.

The minimum amount of support increased in 2022 from EUR 25 to EUR 40 per year and the average support is EUR 375 per year per beneficiary, which will remain the same in 2023.

What is the cap on the price of a butane cylinder?
The price of a cylinder of butane until 30 June 2023 may not exceed 19.55 euros, as the freeze on the price of bottled liquefied petroleum gases approved in June 2022 has been extended.