This text explains how Spain plans to limit the price of natural gas for neighborhood communities that use common boilers, based on statements from the Third Vice President and Minister of Ecological Transition, Theresa Ribera. The government aims to ensure that users with shared heating systems receive similar protection to other consumers for a period of one year, aligning them with the regulated gas tariff (TUR).
Spain has about 1.6 million households that rely on centralized heating systems, often managed by community associations. These large consumers typically do not qualify for the TUR domestic tariff due to their size and energy needs, which exceed 50,000 kilowatts per year. To date, tariffs for these users have moved in parallel. The energy crisis pushed gas prices up in the international market, and the government introduced in September a mechanism to cap TUR growth by limiting the increase in the raw material price to 15% and updating this cap every three months. This adjustment has widened the cost gap between the two tariff groups.
There is concern about a potential pricing gap between households with individual boilers and those with central heating that benefit from TUR. Paul Abascal, chair of the General Assembly of Property Managers Associations, argues that the disparity is significant. Madrid’s Property Managers College notes that some domestic customers paying TUR can see prices around 59 euros per megawatt hour, while similar users with central heating may face around 160 euros per megawatt hour, according to Paul Ruiz. Calculations from the association indicate that a household paying about 600 euros for a gas bill in autumn and winter 2020-2021 could face roughly 3,000 euros in the current year, nearly five times higher.
Ribera emphasized that entering winter with such discrepancies is unacceptable, warning of serious risks of energy poverty and unsustainability. She described the current trajectory as untenable and pointed to emergency measures in the United States as a reference. On September 20, the government reduced the VAT on gas bills from 21% to 5%, a change that also applies to common boilers.
The cabinet planned an emergency action plan to be addressed this Tuesday, according to ministry sources. This plan would serve as the starting point for a Contingency Plan for the Spanish Gas System, designed to handle potential gas supply problems and possible disruptions in Russian supplies, while adapting to the present exceptional circumstances. Various sources indicate the document will feature two main scenarios: one encouraging voluntary reductions in gas consumption and another proposing a 6.4% compulsory discount on consumption, instead of the 7% initially proposed by the government, which would apply if approved by the European Union and Brussels in July. Importantly, there would be no compulsory obligations for domestic users or industry, but rather consumption recommendations.
The measures focus on efficiency and savings, including reforms to the electricity bill and actions to bolster the security of supply through energy exchange connections between Cartagena and Barcelona. The plan also calls for expanding existing gas pipelines with Italy and France and accelerating the deployment of renewable energy, including biogas, to speed up capacity expansion. A live document will outline the normative measures already approved by the Council of Ministers, such as creating a deduction mechanism for large consumers and other steps that may take more time to implement.
Cited authorities emphasize that the emphasis remains on protecting households from excessive heating costs while maintaining energy security. The plan envisions a combination of tariff alignment, consumption savings, and strategic infrastructure projects to stabilize prices and prevent spikes that would threaten household budgets during colder months. The overall objective is to reduce the burden on vulnerable households and ensure a reliable energy supply under strained market conditions, with ongoing assessments and adjustments as the situation evolves. Source attribution: Ministry of Ecological Transition and related energy agencies.