How does the rise in gas prices affect your bill?

What is happening to gas prices?

The different geopolitical tensions affect the European gas market, thus limiting supply and causing significant price increases over the last few years.

These price increases are driven by the supply-demand response of the international gas market. The gas supply has been considerably reduced as a result of the armed conflict  in Ukraine, but demand is still booming as a result, among other things, of the demand for more gas from emerging countries that previously required smaller quantities of gas.

This series of reasons have led to prices reaching all-time highs.

What measures has the government implemented?

1. VAT reduction on gas bills from 21% to 10%: this measure was effective 1 January 2024 until 31 March 2024.
2. The maximum increase in the cost of raw materials stipulated at 15% in Royal Decree-Law 17/2021 is extended until 30 June 2024.

How can the impact on your bill be mitigated?

Depending on the size of your home and your energy consumption, there are a number of alternatives to mitigate the impact of these increases:

• There are options to consume all your energy as electricity.
• There are also alternatives to the deregulated market, including the regulated "Last Resort Tariff" (LRT) for gas.

Can I contract the regulated gas tariff (LRT)?

Those who consume up to 50.00 kWh per year of natural gas can benefit from regulated gas tariffs (LRT).

These tariffs are regulated by the State, they vary quarterly, and there are two terms:

• Fixed term: A fixed amount depending on the tariff contracted (LRT 1, LRT 2 or LRT 3).
• Variable term: The result of multiplying the gas consumed by the energy term (expressed in euros per kWh) corresponding to the tariff contracted.

How to contract the regulated gas tariff (LRT).

To contract the regulated gas tariff (LRT) you need to contact any of the last resort retailers. They all appear in the following table.