News for natural gas consumers

The current situation of rising energy prices triggered by a number of conflicts around the world is the main reason for the publication of Royal Decree Law 18/2022. This legal text of includes several new features designed to limit the impact of energy prices on consumers and reduce gas consumption. But in addition to far-reaching measures such as extending the Social Bonus or making homeowners' associations with gas boilers eligible for the Last Resort Tariff (LRT), some improvements have been introduced for gas consumers. We'll tell you what they are and how they affect you.

Contract in writing

The new law confirms that free-market contracts must be concluded in hard copy format, i.e. in writing, and signed by the consumer and the energy supply company.

The contract must include all the details of the service: supply conditions, safety, continuity and quality of service, financial result of not complying with the quality of supply, supply measurement and billing, grounds for termination, and arbitration mechanisms established, as applicable, by Royal Decree Law 18/2022.

Term of the contract

Under the new law, once it enters into force, the maximum duration of a free-market contract shall be one year. However, it may be extended tacitly for a further period of one year. Consumers may cancel these extensions by giving 15 days' notice, without any penalty being imposed by the energy supply company.

Penalties established in advance

If the cancellation is due to the consumer's desire to switch from the free market to the LRT (regulated market) after the contract has been extended, the maximum possible penalty may not exceed 5% of the expected charge for the variable energy component, calculated by multiplying the contractual price at the time of cancellation by the volume of energy that is still pending supply.

New grounds for terminating the contract

Until now, some consumers did not have the right to benefit from the regulated market (LRT), so their gas supply contracts were always within the free market. However, Royal Decree-Law 18/2022 provides certain consumers - homeowners' associations in buildings with a communal gas boiler - to benefit from a LRT if they so wish (link to post: new measures for community gas boilers).

Consumers who wish to terminate their current contracts with their free-market energy supply companies must request an official contract cancellation or change of supplier certificate. The old contract will terminate as soon as the new supply contract is activated.

Additional services

Any additional services provided by gas supply companies (technical services, maintenance, repairs, inspections, etc.), which are usually contracted together with the gas supply service, shall be terminated once the contract expires. Only if the consumer explicitly expresses his or her desire to continue to receive these additional services shall the marketing company continue to provide and charge for them.

Some tips for choosing your gas tariff

1. Calculate what you need: find out your annual and monthly consumption figures. Using natural gas only for hot water is not the same as using it for cooking and heating as well. Also important is the size of your home, the number of people living there, how much time you spend in it, the climate of the area where you live, etc.
2. Take energy efficiency measures: these range from insulating your home properly to keeping temperatures within recommended levels (19°C in the winter, 27°C in the summer, as specified by Plan +SE published in October 2022 by the Ministry of Ecological Transition). It also involves switching to more efficient systems (such as, for example, from traditional to condensing boilers) and ensuring your systems are properly maintained. This allows you to adjust your consumption, reducing the volume of gas you use every day, and thus your bills.
3. Assess and compare tariffs: compare prices, service, duration of the contract, penalties, limits to the application of prices by volume or time bands and benefits of the different tariffs, whether in the free market or regulated market. Remember that the free-market tariffs are provided by gas supply companies, while the LRT tariffs are offered by the Last Resort Suppliers (LRS).

Remember that LRT tariffs have no minimum contractual term, so you can terminate your contract at any time if you want to benefit from a free-market rate. Another aspect that you should not lose sight of is the possibility of benefiting from the Social Bonus: to do so you must be paying a LRT tariff.

Endesa will be happy to advise you on the free-market tariffs that best suit your needs, so you won't have anything to worry about this winter.