The energy crisis has driven a rapid rise in families seeking help to cover electricity and other energy costs. Since the mid-2021 energy shock, a social electricity bill discount program has benefited 1.6 million people, according to the latest government data, and as the crisis persisted, the reach of energy support expanded to more households under the ozar scheme.
By the end of 2023, over 1.599 million households across Spain were receiving assistance to cut electricity bills for vulnerable and seriously ill residents. Those benefiting since the start of the energy crisis show almost 38% growth, with 438,000 more families added since May 2021, according to a combined analysis from the Ministry of Ecological Transition and the National Markets and Competition Commission (CNMC), just before the government introduced its first emergency measures in June of that year to curb energy price rises.
Months of record price increases, amplified by Russia’s invasion of Ukraine, directly impacted Spanish homes, with vulnerable families bearing the brunt. Even as markets cooled somewhat, prices stay well above historical averages and the number of recipients of social bonuses keeps rising. In the second half of 2023 alone, more than 90,000 new families sought help and received it.
Enhanced assistance
The electric social bonus provides discounts ranging from 25% to 40% on electricity bills, based on the degree of vulnerability (vulnerable, severely vulnerable, or at risk of social exclusion). In response to the crisis, the government temporarily increased discounts to up to 65%, and most beneficiaries saw up to 80% of their bill subsidized. The government extended this extraordinary aid at least until June 30.
The electricity voucher also grants access to all beneficiaries. The thermal social bonus helps cover part of the costs for gas, water, and heating through a single annual payment between 40 and 375 euros, depending on climate zone and vulnerability level.
The annual cost of the social electricity bonus is around 800 million euros and is distributed among electricity sector operators according to market share, with the downstream effect passed on to customers. The thermal social bonus, about 260 million euros, is funded from the State budget.
Big families
Nearly three-quarters of the 1.59 million beneficiaries at the end of 2023 were selected based on income-related criteria. About 1.06 million are vulnerable or severely vulnerable households, more than 101,000 are pensioners with minimum pensions, and around 14,200 are households classified as vulnerable or severely vulnerable. A portion of beneficiaries comes from households receiving the minimum living income. One in four recipients of a social bonus comes from large families (three or more children); in most cases this does not hinge on household income. More than 380,500 extended families were benefiting by December 2023, according to government data, though the breakdown by recipient type within this group was not published.
In March, the government announced a reform plan to tighten access for large families to special electricity bill discounts by introducing family income ceilings. The aim was to prioritize aid for households in genuine need. The reform process was described as urgent, but progress stalled amid discussions with large-family associations and the political cycle that followed the March announcement, including elections and government formation delays, which slowed momentum.
Although the reform remained unsettled for nearly a year, the Ecological Transition Ministry stated that work continued, maintaining ongoing dialogue with family associations to reach broad agreement, and no deadline was set for launching the reform. A public hearing process had been considered essential for reform, should it proceed.
Even without legal reform, thousands of large families continued to see increases in eligibility for the social electricity and thermal bonuses, with no income cap. By the end of September, more than 380,500 large families had received help with utility bills, with about 17,600 additional three-or-more-child households added since the reform discussions began publicly, reflecting ongoing demand among larger households.