What should be taken into account before contracting a new gas tariff

Gas market

In Spain there are two gas markets, in which different types of tariffs are available:

• Deregulated market: where deregulated market retailers offer their tariffs to customers. These tariffs invoice consumption in a number of ways (there are fixed tariffs, flat-rate tariffs, hourly tariffs, etc.) and they may include benefits such as promotions and discounts.
• Regulated market: last Resort Retailers are responsible for offering the Voluntary Price to the Small Consumer tariff (PVPC in Spanish), also called the Last Resort Tariff (LRT). In this case, the Government is responsible for setting the price of gas through auctions, which can be consulted on the MIBGAS platform. Prices remain in force for three months. At the end of this period the Government reviews the prices depending on whether the price of gas falls or rises. This is why prices may change. The duration of the contract is one year.

To contract the regulated gas tariff (LRT) you need to contact any of the last resort retailers. The last resort retailer for the Endesa group is Endesa Energía XXI.

Always remember that, if you want to apply for the Thermal Social Bonus, an aid programme to compensate for payments to be made by the most vulnerable consumers for heating, hot water and cooking, a series of requirements need to be met, as well as:

• Having a contract for the PVPC tariff included in the electricity supply contract.
• Having a contract for the PVPC tariff, also called LRT, included in the gas supply contract.

If the PVPC tariff is applicable to both supplies and a request is made for the electricity Social Bonus, providing the corresponding requirements are met, the Thermal Social Bonus will be applied automatically.

What are the requirements for contracting gas?

Before selecting the tariff and the retailer, you will need the following documentation to be able to contract gas. It will be the retailer you select who contacts the distributor for the area in order to activate supply. The following documentation is required:

• Personal details of the contract holder: name, surname(s), ID.
• Details of the bank account for direct debits of invoices.
• Full address for the supply point.
• CUPS for gas supply to the property: this is the Universal Supply Point Code (CUPS in Spanish). This is a unique code for a gas network supply point and this is how it is identified. It is not associated with any person, owner or holder of the supply contract. It never changes once the supply point has been registered.
• Copy of the deed of ownership of the property or a current rental contract
• First occupancy licence: this is the urban planning licence for first occupation and operation that certifies that a new house conforms to the approved technical project and the conditions for which the urban planning licence was granted. It is not required if the property already has or has had a gas contract previously.
• Individual Reception Installation (IRI in Spanish) Certificate: this is the mandatory inspection of the gas installation, which is undertaken periodically, specifically, every 5 years. The IRI should be in order and currently in force.
• Thermal Installation Certificate (RITE in Spanish): this document is signed by the installer, who verifies that the installation complies with the corresponding regulations.

1. Estimate the gas consumption for your home

Once you understand how the gas market works, it is time to analyse your consumption to find out which tariff best suits your daily requirements.

Take a look at the gas you consume: do you have an electric or gas water heater? Do you have individual gas heating? Do you have a gas or electric cooker? Do you have central heating or hot water? How many people live in the house? What is your daily routine? What do you use the house for: Is it where you live or is it a second home? Is your house well insulated? What are its main features? Which way does it face, what floor is it on, what is the climate in the area where the house is located? The answers to these questions are the key to understanding how your consumption works and are crucial when choosing the tariff that best suits your needs.

2. Choose the tariff that suits you best

Now you know what you consume, it is time to choose the tariff that best suits your circumstances. Here are some suggestions:

• Fixed tariff: It offers you a fixed price per kWh. It offers you the peace of mind knowing that consumption will cost the same at any time of the day. Endesa, for example, offers you the One Gas Tariff.
• Combined tariff: Includes the supply of electricity and gas in the same bill to simplify the process. Endesa's Única Tariff: you will pay a fixed amount on your bill during your annual contract, no matter what time you consume energy.

You should also take into account other services relating to your gas supply: boiler inspection or gas inspection.

Understand the different tariffs according to your supply

In the deregulated market, there are 4 types of tariffs depending on consumption:

RL1: for consumption of less than 5,000 kWh/year, homes with a gas water heater and/or a gas cooker

RL2: for consumption between 5,001 kWh/year and 15,000 kWh/year, homes with gas heating.

RL3: for consumption between 15,001 kWh/year and 50,000 kWh/year, homes with high consumption and small businesses.

RL4: for consumption between 50,001 kWh/year and 300,000 kWh/year, communities of owners and companies.

In the regulated market, there are 3 types of tariffs depending on consumption:

LRT.1: for  consumption less than or equal to 5,000 kWh/year.

LRT.2: for  consumption exceeding 5,000 kWh/year and less than or equal to 15,000 kWh/year.

LRT.3: for  consumption exceeding 15,000 kWh/year and less than or equal to 50,000 kWh/year.

1. What factors affect the price?

There are four factors that affect your gas bill:

A) Fixed term: this is the part of the gas bill that must always be paid for having access to the supply point, regardless of your consumption. The amount depends on the gas tariff you have contracted.

B) Variable term: corresponds to what you consume.

C) Meter rental: the distributor is paid for the rental of the metering equipment.

D) Taxes: VAT (5%) and the Special Tax on Hydrocarbons, which is levied at €0.00234 per kWh.

2. Read your contract carefully

When the time comes to sign your contract, take as much time as you need to read it and understand the commitments involved. Please remember that some contracts include minimum duration clauses. In others, the price per kWh invoiced increases once a certain consumption is exceeded. These details should not be overlooked.

3. All about Endesa's gas tariffs

Endesa offers you gas tariffs that adapt to your way of life and your requirements. Take a look, we will be happy to advise you and help you choose the right tariff.