Spain’s electricity and gas support measures: reaching millions while facing uptake and administration questions

No time to read?
Get a summary

The government rolled out a new form of support nearly a year ago, a program labeled the electricity social bonus. It was introduced as a shield against the energy crisis, offering a temporary 40% cut to electricity bills for households with average income. The aim was not to target only the most vulnerable, but to provide relief across a broad segment of families facing rising energy costs.

The authorities announced that up to 1.5 million households could benefit from this temporary discount. A financing mechanism tied to electricity companies—reflecting market share on customer bills—helped fund the program. Yet the actual uptake fell well short of those expectations.

Official records from the Ministry of Ecological Transition show that, by the end of last July, there were 25,583 households identified as sheltered beneficiaries. Discounts of 40% accounted for less than 2% of the total beneficiaries of the electric social bonus. Since the measure went into effect, the list of beneficiaries for the new aid aimed at vulnerable groups has grown steadily, with some months recording more than 6,600 accepted applications.

The total beneficiary count remains far below the potential projected by officials, who attributed this gap to a relatively small number of declared subscribers. Families were given the opportunity to access measures designed to shield them from price increases, though enrollment remained optional.

Spain surpasses 1.5 million families benefiting from electricity bill relief for the first time

This relief, originally targeted at the “middle class,” was set to extend through year-end unless the Management opted to prolong it. Eligible households must have a contract under a regulated electricity rate and fall within income thresholds. For two adults with two young children, the annual income cap is €27,700; for a single adult, the cap is €16,800.

Record numbers of social bonus recipients

Spain reached a milestone, with about 1.52 million homes receiving some form of social electricity support by the end of last July, reflecting sharp increases during the energy crisis. The government’s anti-crisis measures authorize discounts ranging from 25% to 40% depending on vulnerability levels. In recent months, the majority of beneficiaries saw elevated rebates, with temporary increases to 65% and 80% of the bill for many. Those extraordinary boosts were intended to last through the year, with upcoming months signaling whether the program would be extended. The number of beneficiaries has grown 21% in a single year, adding 267,300 new households since July 2022, and rising 31% since May 2021 as the energy crisis intensified. These figures come from a joint analysis by the Ministry of Ecological Transition and the National Markets and Competition Commission (CNMC), reflecting data gathered before initial emergency measures were introduced in June to curb energy price surges.

Regulated gas rates fall for 2.8 million homes but rise for housing cooperatives

Last year, the government introduced a subsidized gas rate aimed at owners’ associations and housing cooperatives, designed to lower costs for centrally heated buildings. Since the new collective rate, known as the neighborhood TUR, was launched last October with a discount near 50%, about 6,700 communities have benefited, as approved by the Ministry of Ecological Transition. Although the administration projected that up to 1.7 million households could gain from the program, it did not specify the number of eligible communities.

Access to this subsidized regulated rate, which is set to expire at year-end unless extended, requires condominiums to meet certain conditions. In particular, communities must ensure separate meters are installed in each residence to prevent a rise in overall gas consumption compared to the three-year average. These requirements can complicate agreement among neighbors when negotiating a lower tariff.

No time to read?
Get a summary
Previous Article

Granada Summit Reflections: Media Narratives and EU Unity

Next Article

LaLiga 2023-2024: Barcelona stumble, standings tighten, and a close-packed race