On January 1, a change will take effect that ends the TUR Vecinal program, the regulated neighborhood tariff. As a result, customers who benefited from this government-backed subsidy will need to transition to the free market option. Regulators have indicated that distributors may share information with beneficiaries under a ministerial order to facilitate this switch. Naturgy, a leading gas supplier in Spain, confirmed to El Periódico de Cataluña that it has begun sending notices to its customers regarding the transition. (Source: Ministry of Ecological Transition).
The measure was introduced during last year’s energy crisis and was set to expire on December 31. The government had not immediately announced whether an extension would be granted. A ministerial order issued by Selectra, a marketing company, indicates that customers with a regulated tariff must obtain a contract with a free-market supplier by October 15, and that, by January 1, 2024, those who fail to switch will see their tariff removed in favor of the standard market rate. (Source: Ministry of Ecological Transition).
Even though the Official State Gazette (BOE) published the text on September 26, the ministry emphasized that TUR is an interim measure and that its continuation beyond year-end had not been confirmed. Researchers from EFE, citing a department led by Teresa Ribera, noted that roughly 6,700 neighborhood communities had previously accepted the ENG Neighborhood gas option. (Source: BOE and Ministry of Ecological Transition).
Until recently, neighborhood entities were allowed to hire one person under the free-market rate only if their scale and demand justified it, generally for large consumers exceeding 50,000 kilowatts per year. This framework kept prices closer to the regulated level and limited competition from the government-backed TUR system. The acronym TUR stands for the Last Resort Rate, a mechanism designed to help a broad range of users, not just households in financial need. (Source: Ministry of Ecological Transition).
The free-rate framework uses a regulated reference price and is reviewed quarterly in line with wholesale gas prices. As international gas costs rose in early 2021, the government capped TUR increases at 15 percent per quarter to shield consumers from sharp spikes. This cap effectively delayed part of the price increase, with the difference between the actual gas rise and the 15 percent limit being borne by consumers at a later time. (Source: Ministry of Ecological Transition).
As the war in Ukraine progressed and gas prices surged, authorities decided to subsidize the gap between actual prices and the 15 percent limit. A special TUR rate was also established for communities in Ukraine to ensure a uniform level of support. Both the individual and neighborhood TUR rates carry deadlines tied to the end of the year, and other measures such as electricity rebates and tariff-related taxes were considered, though their fate remains undecided. (Source: Ministry of Ecological Transition).
The article also notes a one-year moratorium allowing users extra time to meet possession requirements for individual meters, extending the deadline to September 30, 2024, to avoid penalties. This accommodation was intended to ensure continued access to assistance. (Source: Ministry of Ecological Transition).
According to Selectra, the end of TUR could lead to higher invoices for smaller communities that previously benefited from the program. Estimates suggest that the smallest communities, with annual consumption around 150,000 kilowatt-hours, could see bills rise from about 6,600 euros to 13,500 euros. Larger communities, consuming roughly 400,000 kilowatt-hours, might see charges climb from 19,100 euros to 36,300 euros. (Source: Selectra and Ministry of Ecological Transition).
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