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What is the social rate and who can benefit from it?

The social rate is a discount scheme given to consumers to help them pay their electricity bills. It is regulated by the Government and the aim is to protect families in financially vulnerable situations. Do you know if you qualify for the social rate?

In 2009, Spain approved the electricity social rate, a discount regulated by the Government, mainly aimed at protecting financially vulnerable groups.

In reality, it is a 25% or 40% discount on the regulated tariff (VPSC). In numbers, this discount could represent annual savings of more than 200 euros for average consumers.

Despite it being launched over 8 years ago, there are still doubts concerning who can apply for it, particularly since the criteria changes in October 2017.

We will explain all you need to know about the social rate.

 

Who can apply for the ‘bono social’ discounted rate?

Households with a contracted power equivalent to or below 10 Kw can apply for the social rate, provided it is a usual residence and they fall under one of the following categories:

  1. Pensioners: those that receive the minimum pension (through retirement or permanent disability).
  2. Large families: large families with at least three children.
  3. Low-income families: families with an annual income below 11,279 euros (if they do not have children), 15,039 euros (if they have one child) or 18,798 euros (if they have 2 children). These thresholds will be updated on a regular basis.

 

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

Type of family unit

family unit income in the month prior to requesting the subsidised rate

Monthly income

Special circumstances

Monthly income

No dependent minors / Not part of the family unit. 1,5 x IPREM (Public Income Indicator of Multiple Effects) (14 payments) monthly. € 940 2 x IPREM (Public Income Indicator of Multiple Effects) (14 payments) monthly. € 1.253
1 dependent minor. 2 x IPREM (Public Income Indicator of Multiple Effects) (14 payments) monthly.
€ 1.253 2,5 x IPREM (Public Income Indicator of Multiple Effects) (14 payments) monthly. € 1.567
2 dependent minors. 2,5 x IPREM (Public Income Indicator of Multiple Effects) (14 payments) monthly.
€ 1.567 3 x IPREM (Public Income Indicator of Multiple Effects) (14 payments) monthly. € 1.880

*IPREM 14 PAYMENTS (as of 2020) €7,520

 

Since when have these COVID measures been in place?

From 30 September 2020.

People who meet the requirements detailed above and who request the subsidised rate are considered vulnerable and will receive a 25% discount on their electricity bill.

 

Until when do these measures apply?

The subsidised rate discounts under these new circumstances generally end on 30 June 2021. From then on, all those affected may request the subsidised rate, but only according to the usual requirements.

In particular, when a beneficiary ceases to meet the requirements, his or her right to receive the subsidised rate will end. When that happens, you must notify your marketer within a maximum period of one month.

 

How to apply for the ‘bono social’ discounted rate

To request the Social Rebate, contact one of the leading suppliers. They are the only power companies authorised to offer it.

If you think you are in one of the above groups, please read the following information carefully:

How to keep the ‘bono social’ discounted rate

Power companies must check that those applying for the social rate meet the eligibility criteria and that these remain the same at all times. Once it is granted, it is valid for a period of 2 years, after which, proof of compliance with the criteria must be submitted again.

With the change of criteria implemented in October 2017, some people may no longer be entitled to receive the Social Rate and others may be entitled to receive it. Once 6 months have elapsed from October 2017, those that are no longer entitled to receive the social rate shall automatically have the regulated tariff (VPSC) applied.

Furthermore, there is an exception for large families: they must renew the Social Rate when the large family card is going to expire. 

And of course, do not accept any additional discounts or price reduction offers, as you could lose the social rate as a result of changing company.

 

What if I don't qualify?

If you are not eligible for the social rate, Endesa offers other savings opportunities so you can find the best choice to suit your profile.

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