The government measures aimed at curbing energy price hikes managed to slow the rise briefly, according to a study from the Basque Centre for Climate Change (BC3). The findings show that efforts to fight inflation helped consumers save about 350 euros on electricity, gas, and fuel bills, bringing the total relief to around 2,942 euros. Without the measures, the rise in bills in 2022 would have outpaced 2021 by roughly 44 percent, reaching 3,292 euros in total.
Key policies included a reduction in VAT on electricity and gas, cutting the electricity generation tax, and suspending certain levies that burden power producers. The package also rolled back some incentives linked to nuclear and hydroelectric power as gas prices surged, set an upper limit on gas usage in electricity production, and adjusted charges for renewable energies. Other measures included improvements to the regulated gas price cap, known as TUR, a 20 cent discount on gasoline and diesel, limits on butane bottle price increases, and targeted social electricity benefits.
The BC3 analysis highlights that the financial relief was not evenly distributed. Households with lower incomes benefited more proportionally, reducing their energy expenditures by a larger share. On average, energy bills fell by about 2.5 percent for low-income households and roughly 0.8 percent for higher-income households. In absolute terms, the savings rise with household wealth: the poorest saved about 314 euros while the wealthiest saved around 488 euros. The response from consumers with higher incomes is tied to the broader structure of the measures, which were often broad in scope and thus conferred larger absolute savings to those with more consumption or greater energy needs.
In contrast, many households that are less affected have tended to be older individuals living alone or people who are not part of the labor force and often face limited income growth amid rising prices. Those in rural or small-town settings were also among the most exposed to fuel price volatility, due in part to less access to alternative energy sources and the greater distance to supplier networks. The situation exemplifies how regional and demographic factors shape the impact of price controls and energy subsidies.
For electricity bills, the typical household consumes about 2,674 kilowatt-hours annually with a 4.1 kilowatt power capacity. Under the policy mix, overall spending rose by 15 percent, totaling roughly 947 euros. Without government intervention, the increase would have been around 35 percent, about 1,110 euros. The effect differed by market segment. Consumers on the regulated market with a Voluntary Price for Small Consumers (PVPC) saw a 35 percent increase, averaging 975.94 euros, compared with 1,341.15 euros without measures. Those on the free market experienced a smaller rise of 15 percent, averaging 803.67 euros, versus 91.43 euros without intervention. The regulated tariff remains closely tied to wholesale electricity prices and the evolution of daily market conditions, which have fluctuated in recent months.
On the gas side, the average bill was 1,039.58 euros in the free market, up 34.37 percent from 2021, while the TUR-regulated market showed an average of 697.34 euros, a decrease of 17.43 percent from last year. Had the government not frozen price increases, the cost to households would have been nearly double the actual amount. Vulnerable groups who receive the thermal social bonus could deduct between 50 and 498 euros in the first category or between 80 and 797 euros in the second, depending on the household’s climate zone and eligibility. The report notes that a large share of buyers who receive social bonds are not truly eligible, and it recommends streamlining access to these bonds, including automatic eligibility for groups such as recipients of the Minimum Vital Income, to better shield vulnerable households from future price shocks. Access criteria for social bonuses should also be more strongly tied to income levels to ensure proper targeting and distribution.
Fuel costs present another layer of impact. Gasoline rose by 32 percent, bringing the average household bill to roughly 725 euros in the absence of measures. Without intervention, gasoline costs would have climbed to about 792 euros. Diesel increased by 48 percent, pushing the average to 837 euros, a rise that would have reached approximately 913 euros without government action. These shifts underscore how price protections can soften the burden on families as energy prices evolve in response to broader market dynamics and geopolitical factors.