When a new government formation is delayed, officials confirm ongoing support for affordable energy through extended public subsidies. The Deputy Minister of Foreign Affairs Responsible for Energy announced the department’s plan to extend the Turbo Universal Regime (TUR) subsidy on gas tariffs, along with a special tier designed for neighboring communities. These measures are among the next steps scheduled to unfold by December 31, and they have created some confusion among more than 6,000 owner-communities and beneficiary companies who must adjust their rates before that deadline.
Officials stated that TUR will be expanded and adjusted to broaden its reach. In a forum organized by a prominent energy publication, the minister underscored the importance of keeping these protections in place during a period of economic turbulence. The measure carries a budget of several billion euros, with a portion allocated to aid through July 2023, reflecting the government’s intent to cushion households and small businesses from volatile wholesale gas prices.
The regulated and lowest-cost gas tariff has been reviewed on a daily basis and updated quarterly in response to wholesale market dynamics. Since spring 2021, when international gas prices began rising sharply, the government moved to shield the TUR from excessive quarterly increases by placing a cap on price growth. This approach protected consumers, especially those using regulated tariffs, from sudden spikes in energy costs.
To address the resulting debt from the price cap period, a deferred payment approach was adopted: consumers only paid the difference between actual increases and the imposed limit after the fact. A year later, the Ministry of Ecological Transition decided to subsidize debts incurred during that year, including contractual obligations with energy marketers, and to create a special TUR rate for neighboring communities so that all consumers would receive a similar level of assistance. Both elements are set to expire on December 31. The formal announcement will be added to other government highlights, including plans to pursue further ecological transition measures such as VAT relief on electricity and natural gas, a cap on electricity company income, and extensions of social bonuses for energy bills and new term contracts. The current administration is expected to renew these duties in the near term.
Another measure under consideration is the extension of the Iberian mechanism, commonly referred to as the gas price limit. This extension was first requested a year ago and has been revised over time, but its final approval rests with European partners. The aim is to extend the crisis management period beyond December 31 of the current year. Brussels has proposed a three-month extension, yet the final decision will depend on member states within the framework of the agreement. An energy council will be convened within a month to discuss these developments, with the vice president indicating the planned agenda.
In related news, discussions between governing parties have signaled an intention to boost social bonuses and improve aid distribution. The share of beneficiaries is expected to rise from the current level to accommodate more households in need, especially those experiencing energy poverty. When compared with past years, the newly projected beneficiary counts suggest a significant expansion of support programs, highlighting an ongoing commitment to social equity in energy pricing and access.
Experts note that the unfolding policy mix balances immediate relief with longer-term structural reforms. By preserving affordability through TUR and neighboring-community subsidies while pursuing broader ecological measures, the government aims to stabilize household budgets and safeguard vulnerable consumers. Critics, however, point to questions about the sustainability of extended subsidies and the dependence on wholesale market conditions, urging careful calibration to ensure lasting benefits. Proponents argue that targeted subsidies and predictable price supports provide essential cushions against market volatility and help maintain social cohesion in the face of energy price shocks. The debate continues as authorities prepare to finalize decisions ahead of year-end deadlines, with oversight and transparency guiding the final policy package.