Big energy players are preparing a major shift in customer pricing, moving many households toward regulated electricity costs. They’re obligated to offer differently regulated rates for natural gas, and recent moves have sparked a surge of inquiries from customers about TUR options. This shift signals a potential decline in the take-up of regulated rates, as the market leans toward free-market pricing in the years ahead.
That shift is being driven by a government package worth millions aimed at lowering regulated rate costs, announced last week and officially approved this week. This anti-crisis shield is part of a broader energy security plan demanded by Brussels from member states to counter the energy crunch. It aims to cap annual increases in the regulated gas rate for about 1.5 million customers through 2023, and for roughly 1.7 million homes with central heating in new neighborhood communities where discounted rates apply.
The National Markets and Competition Commission (CNMC) confirmed the shock in the gas market. The commission’s head, Cani Fernández, noted a sharp move by customers from the free market to regulated gas, while denying significant bottlenecks. “We have observed that marketers of last resort are responding quickly to requests as the pool of regulated gas remains tight,” Fernández stated. (citation: CNMC report)
The government will continue to support price stability in power markets through 2023 to slow electricity price rises
Among the few firms still offering regulated gas rates — which law requires them to market as a public service — Endesa, Iberdrola, and Total Energies have seen a clear uptick in inquiries about TUR benefits, both in offices and by phone. Some customers reported long queues and wait times while trying to reach their marketers, even as these groups emphasized timely responses. (citation: official statements)
Naturgy, the largest gas company in the market by customer base, has recently enabled contracting at regulated rates via its website, a feature that had not been active due to limited demand. Many firms acknowledge enhancing their emergency marketing channels to handle anticipated surges in consumer information requests.
Overall, the number of customers paying market-determined, free gas prices remains higher than those on regulated rates. Regulated prices are set quarterly by the government, tied to international hydrocarbon price trends, and subject to a ceiling on increases since last year.
Recent CNMC data show about 7.9 million gas customers in Spain, with roughly 20% on regulated rates, a total of around 1.5 million users. This level held steady despite the price-cut period. A regulatory note stated that the price gap between TUR and the free market did not change TUR customer numbers in the fourth quarter of 2021. (citation: CNMC report)
million-dollar aid package
As part of the contingency energy measures, the government introduced a new regulated gas rate designed to help neighborhoods with central heating. While not all households have exceeded maximum consumption, the plan aims to cut their bills by about 50%. General Government Budgets will cover the other half of the current charges for these 1.7 million homes. (citation: royal decree overview)
Alongside this, the government will extend the cap on increases to the regulated gas rate through 2023. To prevent bills from ballooning amid volatile gas prices, the plan initially limited price changes to about 5% after two quarterly reviews; this cap is now extended to end-2023, with the deficit borne by the state budget. (citation: government decree)
The executive pledges full public budgeting support to close the financial gap created by the new aid measures in the gas system. A royal decree approved by the Cabinet allocates an exceptional 3,000 million loan to cover these costs, with a commitment to increase this item as needed to finish 2023. (citation: royal decree)
Related posts:
Large energy groups surge into regulated gas tariffs as state aid boosts customer shifts Tariffs and the surge in regulated gas rates Subsidized gas rates reshape the market: TUR reforms and consumer impact Government support reshapes regulated gas tariffs and household bills state aid reshapes gas tariffs and consumer switching CNMC Action and Market Shifts in Regulated Gas Tariffs Across the U.S. and Canada Context Gas Price Reforms and Regulated Tariffs: Industry Trends and CNMC Scrutiny Regulated Gas Tariffs and Subsidies: Household Impacts and Market Shifts Gas Pricing and Market Structure in Spain: What Consumers Need to Know CNMC Opens Probe Into Regulated Gas Tariffs Amid Government Relief Push Electricity Market Shifts: Tariffs, Subsidies, and Consumer Awareness in Europe Energy costs shift: how households in North America respond to price changes