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What is social rate and how do I apply for it?

Due to the state of alarm declared as a result of the COVID-19 epidemic, the Government has extended application of the discounted rate (bono social) for customers who are currently due to renew. The renewal deadline is automatically extended until 15 September.

For the same reason, self-employed workers who have been forced to stop working or whose turnover has decreased by 75% will be considered vulnerable customers and therefore eligible for the Bono Social. 

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.

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%.

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 and demonstrate that they have had to cease their activity or that their turnover has decreased in accordance with article 28 of Royal Decree-Law 11/2020 of 31 March, will be considered vulnerable until they resume work and for a maximum period of 6 months from the time they obtain the discount or invoice.

 

What are these requirements?

Vulnerable customers

Vulnerable customers (benefiting from a 25% discount on electricity bills) 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 2019: 7,519.59 euros.

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

Customers are classed as severely vulnerable (discount of 40% on electricity bills):

  • 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.

 

Limits on electricity consumption

Discounts of 25% and 40% of total electricity bills are subject to a limit on energy consumption which, when exceeded, the VPSC will be applied:

  • 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
Documentation
Vulnerable / Severely vulnerable consumer
Where can you obtain the documentation
Social Rate Form completed and signed by the entire family unit.
Photocopy of the NIF or NIE of the holder and all members of the family unit (including those above the age of 14 capable of working and those younger than 14 who have one).
In the event the holder forms part of a family unit, the family register or certification of the individual sheet of the Civil Registry for each one of the members of the family unit. In the event of not forming part of a family unit, the individual sheet of the Civil Register or any document issued by the competent authority that accredits the civil status of the applicant.
  • Civil Registry
  • Competent authority
Valid (non expired) City registration, individual or group, of the holder and all members of the family unit.
  • Offices of Citizen Services
  • Town Councils
Photocopy of a valid large family card.
Only applicable to large families.
  • Offices of Citizen Services
  • Family Departments in Regional Social Services Offices
Social Services Certificate from the competent agency of from one designated by the autonomous Community, certifying Special Circumstances:
  • Disability equal to or greater than 33%.
  • Victim of gender violence.
  • Victim of terrorism.
  • Dependency recognized grades II and III.
Only applicable to Special Circumstances.
  • Department of Social Affairs
  • Base Centres of the Social Services Offices

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:

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.

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