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:
- Pensioners: those that receive the minimum pension (through retirement or permanent disability).
- Large families: Large families with at least three children.
- 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