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

The extraordinary discounts of 60% for vulnerable consumers and 70% for severely vulnerable consumers have been extended until 30/06/2022.

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:

• Annual income less than or equal to the limits established in accordance with the IPREM (most commonly used index for granting aid and subsidies):
• 1.5 times the IPREM*: If he/she is not part of a cohabitation unit or there are no dependant minors.
• 0.3 times the IPREM for each additional member of legal age.
• 0.5 times the IPREM for each minor in the cohabitation unit.

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

For example, to be entitled to the Social Bonus (vulnerable consumer), for a couple with two children, maximum income was €20,266, and with the new requirements it has now become €22,698.

A "cohabitation unit" is now considered to be that constituted by all the people who reside in the same household and who are related to each other as follows:

• By marriage or as a domestic partnership.
• Related up to the second degree of consanguinity/affinity: Children, spouse, parents, parents-in-law, sons-in-law and daughters-in-law, grandparents, siblings, grandchildren and brothers/sisters-in-law.
• By adoption, and other persons with whom you live by virtue of guardianship for the purpose of adoption or permanent family fostering.
• In no case may the same person be part of two or more cohabitation units.

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

• If any member of the cohabitation unit has a recognised disability equal to or greater than 33%, has been a victim of gender violence or has been a victim of terrorism.
• If a member of the cohabitation unit is in a situation of recognised grade 2 or 3 dependency.
• If it can be accredited that the cohabitation unit consists of a single parent and at least one minor (single-parent families).

For example, to be entitled to the Social Bonus (vulnerable consumer), for a couple with two children, maximum income was €20,266, and with the new requirements it has now become €22,698.

A "cohabitation unit" is now considered to be that constituted by all the people who reside in the same household and who are related to each other as follows:

• By marriage or as a domestic partnership.
• Related up to the second degree of consanguinity/affinity: children, spouse, parents, parents-in-law, sons-in-law and daughters-in-law, grandparents, siblings, grandchildren and brothers/sisters-in-law.
• By adoption, and other persons with whom you live by virtue of guardianship for the purpose of adoption or permanent family fostering.
• In no case may the same person be part of two or more cohabitation units.

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

• If any member of the cohabitation unit has a recognised disability equal to or greater than 33%, has been a victim of gender violence or has been a victim of terrorism.
• If a member of the cohabitation unit is in a situation of recognised grade 2 or 3 dependency.
• If it can be accredited that the cohabitation unit consists 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

Where they meet the requirements, severely vulnerable customers are entitled to a 40% discount on their bill, with limits to annual consumption. They currently benefit from an extraordinary discount of 70% which is valid until 30 June 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 special category includes those who meet these 2 conditions:

• Have been considered severely vulnerable clients (see above).
• Being attended by the social services of a regional or local Administration that finances at least 50% of the amount of your electricity 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 30 June 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

Where to find the documentation

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

Has your Social Bonus expired? Find out what you need to do to renew your Social Bonus.