Government support aimed at lowering regulated gas bills reshaped the market, triggering a wave of customers shifting to subsidized rates within months. With quarterly price revisions now in place, the latest updates show an average discount of 2.89 percent starting July 1, applying to millions of homes and extending to a shared reduction of up to 5.7 percent for centrally heated neighborhood communities as the next quarter unfolds.
The Official State Gazette reports the Ministry of Ecological Transition’s decision, detailing new values in the TUR (tarifa de último recurso) calculation. The changes come after a government budget plan addressed by the State General Budget and extraordinary measures taken to cushion Ukrainian conflict impacts since October 2022, addressing debt accumulated within the energy sector.
Government messaging insists that price containment plans have been in motion since 2021, with TUR households saving roughly 60 to 180 euros depending on consumption, and small and medium enterprises saving more than 460 euros. TUR applies to any consumer connected to natural gas networks who consumes less than 50,000 kWh per year. The price is reviewed quarterly by the government, and the current framework offers a 40 percent cushion against maximum allowed increases, thanks to its built‑in safeguards.
Discounts based on consumption
Executive calculations show that for individual customers TUR delivers an average annual discount of 2.89 percent this July 1, with results varying by customer type and usage. A TUR 1 consumer (kitchen and sanitary hot water) can expect about a 2.32 percent drop in an annual bill including taxes. TUR 2 users (kitchen, domestic hot water, and heating) face a 2.79 percent reduction, while TUR 3 (SME) customers see about a 3.01 percent cut. Neighborhood TUR, reserved for centrally heated communities, ranges from roughly 4 percent to 5.7 percent depending on consumption.
The initial million‑euro aid plan announced in October has accelerated changes in contracts toward regulated rates. In six months, more than a million customers shifted to regulated gas tariffs. From around 1.58 million TUR users in September to 2.66 million by the end of March. Neighborhood TUR applications have reached about 5,500 residential communities since its October launch, though actual uptake remains lower than early expectations.
TURs are reviewed quarterly on January 1, April 1, July 1, and October 1. If the raw material cost moves up or down by more than 2 percent from the prior quarter, that change is factored into the calculation formula. The government previously capped increases at a maximum of 15 percent of raw material cost from the early energy crisis measures, and officials have indicated that the cap will continue through the end of the year.
To support the transition, the government has a public fund of 3,000 million euros, with room to expand if needed, designed to bridge any gaps in gas system accounts created by rate increase limits for individual TUR customers and the neighborhood TUR. According to the ministry, 631 million euros has already been disbursed to the four major gas groups required to offer the regulated rate—Naturgy, Iberdrola, Endesa, and TotalEnergies—to help close the gap and offset anti‑crisis costs.
Aid disrupts the market
The government’s help to curb natural gas bills has triggered a commercial shock. Subsidies, which reduce invoices for regulated tariffs by about 40 percent, have sparked a notable migration of customers toward regulated rates. The four major energy groups with regulated tariffs added more than one million new customers to their last‑resort distributors within six months.
Even with this large transfer, the free market still accounts for a sizable share. About 5.6 million users remain on the liberalized market, meaning roughly 30 percent of consumers enjoy protections against sharp increases, according to the national price comparison authority. The authority notes that, in many cases, regulated tariffs remain cheaper than all free‑market options.
Market watchers in Canada and the United States see a similar pattern where government interventions aim to stabilize energy costs for households and small businesses. While each country designs its rate protections differently, the overarching goal remains: shield consumers from volatile energy prices while ensuring a balanced, competitive market. The dynamic underscores how policy decisions can quickly reshape customer behavior and supplier strategies, even when broader geopolitical events create ongoing uncertainty in energy markets.
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