Not knowing what the ratio is
Government support to millions of households aimed at lowering gas bills shook the energy market. The subsidies cut purchases by customers on regulated gas rates by about 40% and have sparked a historic rebound, with nearly a million customers switching their contracts in recent months. Yet, those on regulated rates remain a minority, accounting for less than a third of all customers.
Major energy companies responded by offering regulated tariffs, the so-called tariffs of last resort, known as TUR. These offers are filling a real demand surge to enter the regulated sector, where prices are set by the government and currently feature substantial discounts after years of a shrinking customer base in the free market, where prices are set by the companies themselves.
The four big groups with regulated tariffs—Naturgy, Endesa, Iberdrola and TotalEnergies—added almost 900,000 new customers to last resort retailers in just six months. Of the 1.58 million TUR customers recorded last September, the total rose to 2.5 million by February, according to data from the Ministry for Ecological Transition.
Despite the massive churn, free-market gas tariffs remain far more popular, albeit often more expensive and prone to sharp hikes during winter. At present, about 5.7 million users stay with the free market. In other words, roughly 30% of all users have a rate shielded against steep increases, a protection confirmed by the National Markets and Competition Commission’s price comparator, which shows TUR rates to be cheaper than any free-market option.
Subsidized gas rates
Last October, the government announced a multibillion-euro package as part of the Greater Energy Security Plan to tackle the energy crisis. The plan includes a cap on increases for regulated gas rate customers and the creation of a new discounted rate for centrally heated homes by late 2023 and in nearby communities.
Government calculations indicate that the cap on rate increases, along with a value-added tax reduction on natural gas for small consumers, could cut TUR invoices by about 41% for those using under 5,000 kWh per year and by around 37% for TUR 2 users consuming between 5,000 and 15,000 kWh. The contingency measures also introduced a new regulated gas rate for residents with central heating, designed to lower household bills by roughly half for eligible homes. Latest figures from the ministry show that 5,000 neighborhood communities have benefited from the new rate.
500M to close the hole
To support roughly 2.5 million customers, the government is funding a substantial public contribution that helps balance the gas system’s finances. Independent estimates across the energy sector place the subsidy outlay at just over €500 million from October through March. The Ecological Transition Ministry has access to a 3 billion euro loan to cover this cost for the year, with assurances that all necessary public funds will be allocated to cover the program.
The ministry continues to emphasize that these measures are designed to stabilize prices for regulated gas customers, while acknowledging the broader market dynamics. Analysts note that households often lack clear information about available options, which helps explain why many stay with more expensive, fluctuating rates instead of switching to cheaper regulated plans. This information gap has been repeatedly highlighted in government and regulator reports, particularly during the recent energy crunch.
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