Large energy companies are seeing a notable influx of customers moving to regulated gas rates, driven by government-supported initiatives aimed at lowering bills. Facing requirements to offer regulated tariffs, known as tariffs of last resort (TUR), the major gas firms are grappling with a flood of demand to switch into regulated offerings. This marks a clear reversal from recent years when regulated tariffs shrank, and free-market plans dominated customer choices. Source: El Periódico de España.
In recent months, the wave of state aid has helped energy groups add tens of thousands of new customers to TUR-marketed gas plans. Internal company data accessed by the Prensa Ibérica group indicate that more than 442,000 new customers joined regulated gas tariff programs. The shift underscores the impact of public support on customer behavior and market structure. Source: El Periódico de España.
The main player in the Spanish gas market, the retailer of last resort, now reports a customer portfolio around 190,000 in the final stretch of the year. Iberdrola nearly tripled its household registrations at regulated rates, rising from about 111,000 late in the third quarter to approximately 300,000 by year’s end. Endesa also expanded its TUR registrations, adding around 63,000 new customers during October and November, with December data still pending. The broader energy market has not released total figures related to contract development. Source: El Periódico de España.
By year-end, nearly two million homes had contracted gas under regulated tariffs, a figure more than 30% higher than the capacity observed when the government first activated the aid plan last October. Meanwhile, customers in the free gas market—the prices of which are set by companies—remain more numerous, with close to six million clients continuing to choose that option. The pace of migration toward TURs reflects policy measures aimed at stabilizing the gas bill amidst price volatility. Source: El Periódico de España.
SUPPORTED RATIOS FOR 3,000 M
Last October, the government rolled out a substantial package meant to reduce the price of regulated gas tariffs. Direct subsidies began to lower bills for TUR customers, while a crisis-prevention shield of 3,000 million was integrated into the More Energy Security Plan. This contingency framework, aligned with Brussels’ expectations for member states, seeks to limit lawful increases on regulated tariffs through 2023 and contemplates a discounted rate for about 1.7 million homes with central heating in urban neighborhoods. Source: El Periódico de España.
The Ministry of Ecological Transition, led by Teresa Ribera, sought exceptional funding of 3,000 million to cover the deficit generated by these measures. The plan aims to sustain the regulated tariff system through the year, anticipating a potential impact from the surge in customers moving to TURs. Source: El Periódico de España.
CNMC INSIGHT
The National Markets and Competition Commission (CNMC) has launched an inquiry into whether large gas companies are intentionally slowing the bulk transfer of customers toward TURs. An information file was opened, with periodic and ongoing data requests directed at the major groups Naturgy, Endesa, Iberdrola, and TotalEnergies. The focus centers on the technical and personnel resources used to manage rate-change requests, in response to complaints about waiting times, insufficient information, and drafting hurdles. Source: El Periódico de España.
As requests to switch rates surge, CNMC expanded the investigation to consider possible fraudulent behavior linked to customer transfers. The agency is also examining related issues when energy companies modify services for customers, such as maintenance or emergency work, in the context of switching marketers. Source: El Periódico de España.
The government has issued a macro-decree on anti-crisis energy measures, forcing companies to discontinue additional services when a customer unsubscribes from gas supply to join another marketer. CNMC is auditing compliance to this rule, amid suspicions that the policy is not always followed. Large energy firms have strengthened customer-service channels to handle the spike in inquiries from customers seeking to move from the free market to TURs. Naturgy, for example, activated an automated migration process to TURs via its website and launched information campaigns to reassure customers that regulated rates remain among the cheapest options in the market. Source: El Periódico de España.
SECTOR COMPLAINTS
Industry players warn about the consequences of measures designed to shrink one tariff type. Gas companies part of the Ecological Transition aid plan focus on regulated rates, which some say risks market stability. Marketers offering free-market rates are urging the government to help all customers, not just those on TURs. Source: El Periódico de España.
Sedigas has urged authorities to allow any marketer to offer regulated gas rates or apply similar subsidies to free-market rates, bringing together marketers with transport and distribution networks and industry suppliers. The government’s response has been cautious, with no action yet. Sedigas also welcomed a VAT reduction on gas bills from 21% to 5% through at least the end of 2023 and urged further tax relief on items like the Special Hydrocarbons Tax to ease consumer costs. Source: El Periódico de España.
The Association of Independent Energy Marketers (ACIE) advocates measures to shield vulnerable consumers from crisis impacts, including social-energy assistance. They call for policies that extend benefits beyond the regulated-rate segment to all customers, and some industry voices have proposed reducing regulated costs by trimming tolls and charges on the gas bill. Source: El Periódico de España.
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