Social Bonus: what is it and how to request it?

A new Royal Decree will introduce changes in the electricity Social Bonus. For those who are already beneficiaries there will be an increase in the discount percentage and the period of validity of the aid will also be extended as part of the new conditions to be able to request it.

What is the Social Rate?

The Social Rate is a discount established by the Government on the VPSC tariff, aimed at protecting households classed as vulnerable.

Since Royal Decree 897/2017 came into force in October 2017, the requirements for benefiting from the Social Rate have changed.

Who can benefit from the new Social Rate?

In order to benefit from the Social Rate, you must have the VPSC electricity tariff (with or without time restriction) and a contracted power equivalent to or below 10 kW in your usual residence.

In addition, you will need to fulfil certain requirements in order to be classed as a vulnerable customer, severely vulnerable or severely vulnerable customer at risk of social exclusion.

What are these requirements?

Vulnerable customers

They will have a 25% discount on their bill. With the approval of the new RDL 23/2021 on 26 October this discount will be increased to 60% until 30 April 2022.

They are considered to be anyone holding a VPSC contract that fulfil any of the following requirements.

Their total annual income is less than or equivalent to the following limits:

• If you are not part of a family unit or there are no underage children in it: 1.5 times the IPREM* (Multiplier for the Public Income Index).
• If there is a minor in the family unit: 2 times the IPREM*.
• If there are two underage children in the family unit: 2.5 times the IPREM*.

*Annual IPREM 14 payments valid for 2021: €8.106,28.

All of these thresholds will be increased by 0.5 times the IPREM if any of these circumstances are met:

• If a member of the family unit has a recognized disability equal to or greater than 33%, is the victim of gender-based violence, or a victim of terrorism.
• If a member of the family unit is in a situation of recognized dependency -of grade 2 or 3.
• If it is confirmed that the family unit is composed of a single parent and, at least, one minor (single parent families).

Pensioners: if the applicant (or in the case of a family unit, all members of the same) who have income, receive the minimum pension (for retirement or permanent disability) and do not receive any other income whose annual aggregate amount exceeds €500.

Large families: all without exception.

Severely vulnerable customers

They will have a 40% discount on their bill. With the approval of the new RDL 23/2021 on 26 October this discount will be increased to 70% until 30 April 2022.

• Because of their income: those who meet the requirements to be considered vulnerable customers and also have income levels below 50% of the limits established for vulnerable customers.
• Pensioners: all the members of a family unit are pensioners within the Social Security System, receiving a minimum pension (through retirement or permanent disability) and their annual income is less than or equivalent to 1 times the IPREM.
• Large families: with an income equal to an amount below 2 times the IPREM.

Severely vulnerable customers at risk of social exclusion

This category includes severely vulnerable customers receiving assistance from social services from a regional or local Administration that finances at least 50% of the sum of their bill.

New rate subsidy due to COVID-19

Due to COVID-19, there is a legislative expansion that can be taken advantage of by certain people affected by the coronavirus.

Therefore, the following people can also request the subsidised rate:

• Unemployed people.
• People affected by a temporary workforce restructuring plan (ERTE).
• If you are a business person who has had their working day reduced due to care or other similar commitments that involve a substantial loss of income.

What are the requirements for this new subsidised rate?

You have to meet certain income requirements. In the month prior to submitting the application, the income of the household members must be within the following thresholds:

INCOME THRESHOLDS FOR COVID-19 SUBSIDISED RATE

*IPREM 14 PAYMENTS (as of 2022) €8.106,28

Since when have these COVID measures been in place?

From 28 Octobre 2021.

Those who meet the requirements detailed above and apply for the Social Bonus will be considered vulnerable and will get a 60% discount on their electricity bill.

Until when do these measures apply?

For general purposes, the Social Bonus discounts applicable under these new conditions will end on 28 February 2022.

Customers who have been classified as vulnerable consumers in accordance with RDL 21/2021 of 26 October and continue to meet the requirements established will continue to be considered as such without the need for re-accreditation unless the circumstances referred to cease to exist after that date.

When a beneficiary no longer meets the requirements, the right to receive the Social Bonus will end and this should be notified to the retailer within a maximum period of 1 month.

In any case, the condition of vulnerable consumer and the right to receive the social bonus according to these modalities for Covid-19 (unemployment, furlough, etc.), will be cease to be applicable on 28 February 2022. From then on, all those affected may request the Social Bonus but only in accordance with the standard requirements.

Limits on electricity consumption

Social Bonus discounts on the total bill are subject to a restriction on electricity consumption. Once this limit has been exceeded, energy will be invoiced in accordance with the prices in the regulated tariff (PVPC), without discount:

• Pensioners: 1.932 kWh of electricity consumed per year.
• Large families: 4.140 kWh per year.
• Consumers without children: 1.380 kWh per year.
• Consumers with one child: 1.932 kWh per year.
• Consumers with two children: 2.346 kWh per year.

It is free to apply

Fraudulent websites have been detected that attempt to charge you to apply for the Social Rate. We remind you that applying for the Social Rate is an absolutely free process. You do not agree to pay to open the application and you do not provide your card number.

What documentation do you need to request the Social Rate

What documentation do I need to have

How to apply for the Social Rate

The social rebate is part of the regulated energy market. As such, regulated market traders (leading suppliers) are the only power companies authorised to offer the social rebate.

Endesa is a free-market company. In order to apply for the social rebate, you must contact one of the regulated market traders. They will handle procedures and inform you whether your application has been accepted or rejected:

• List of leading suppliers

As a result of the COVID-19 outbreak, self-employed workers who have been forced to stop working or whose turnover has decreased by 75%, as well as anyone affected by an ERTE [Temporary Redundancy Plan] or other regulatory measures taken as a result of the state of alarm, will be eligible for the Bono Social [income-based discount off electricity bill]

They will be considered to be vulnerable customers if their annual income is less than or equal to:

• 2.5 times the IPREM (€18,798.90) if not part of a family unit.
• 3 times the IPREM (€22,558.70) if there is a minor in the family unit.
• 3.5 times the IPREM (€26,318.70) if there are two minors in the family unit.

Customers that meet these requirements will be considered vulnerable until they resume work and for a maximum period of 6 months from 2 April 2020.