New way to fund the electricity social bonus

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1. The cost of the social bonus (the discount on electricity bills for vulnerable consumers) will now be paid by the parent companies of groups that sell electricity, or by the companies themselves if they do not belong to a group. Other sector companies used to pay it, but the Supreme Court struck down that system.
2. Each company contributes according to its market share, measured by number of customers. The National Markets and Competition Commission calculates these percentages every year and the Minister approves them.
3. The system is not permanent: the Government must review it at least every four years to adapt it to the situation of the electricity sector.
4. Electricity supplies to severely vulnerable consumers who are at risk of social exclusion and are assisted by social services are declared essential. This protects them: they cannot be cut off for non-payment under the usual rules, and no surcharges apply to them.
5. For certain vulnerable consumers, power can only be cut off for non-payment after four months from the first payment request, instead of two.
6. Until the Government approves the implementing regulation (within three months), provisional sharing percentages listed in the annex apply.

Who it affects

• Vulnerable electricity consumers: They keep receiving the social bonus, and severely vulnerable consumers at risk of social exclusion get extra protection against power cuts.
• Electricity retailers and their parent companies: They must pay the cost of the social bonus based on their number of customers, and can be fined if they fail to pay or provide false data.
• National Markets and Competition Commission (CNMC): It calculates the sharing percentages each year and publishes the information used.
• Government: It must approve within three months a royal decree implementing the law and help set up a registry of supplies for severely vulnerable consumers.

Words worth knowing

Bono social (social bonus)

Discount on electricity bills for consumers with low income or in a vulnerable situation.

Comercializadora de referencia (reference retailer)

Company that sells electricity at a regulated price and applies the social bonus on bills.

Consumidor vulnerable severo (severely vulnerable consumer)

Consumer with very low income who is at risk of social exclusion and is assisted by social services.

Tarifa de último recurso (last resort tariff)

Regulated electricity price used as the reference to calculate the social bonus discount.

Obligación de servicio público (public service obligation)

Duty the law imposes on certain companies for the general interest, such as funding the social bonus.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries