- These are households with very high consumption that use gas for heating and domestic hot water.
- The company has released communications to help customers in this situation so that they can make the best decision to reduce their bill
- Also, all customer service channels are prepared to help interested customers to switch to the LTR.
With the aim of helping households mitigate the impact of the rise in gas prices, Endesa has conducted a study of its portfolio of customers in the deregulated market to detect any families that could be more exposed to a sharp increase in their bill due to the current context: the war in Ukraine and the rebound in energy commodity prices – particularly gas – has led a 163% increase in the price of this fuel in Europe in 2022 versus 2021.
According to data from the company itself, there are around 250,000 residential customers in its portfolio, in the deregulated market, who would be most exposed to pronounced increases in their bills. Consequently, it is advisable for them to switch to the Last Resort Tariff (LRT) to lower their energy bill, since the LRT price is currently lower than the market thanks to the temporary and exceptional subsidy from the government's budget. This profile of customers registers high or more seasonal consumption, with heating in winter and higher use of domestic hot water.
That is why Endesa has decided to go a step further and proactively communicate to these customers – through various channels such as SMS, invoice or email – that they currently have a better savings alternative for their gas contract (the LRT) so that they may pay less. Additionally, the company has a wide network of channels where any customer can be informed and advised on the tariff that will bring the greatest savings for their gas bill. The energy company has prepared and reinforced its face-to-face channels (commercial offices and service points), as well as telephone and online services, to facilitate contracts in the regulated market to all interested consumers.
In the words of Maite González, Director of Residential and Business at Endesa, "our objective, with each customer, is to advise them so that they can make the best possible decision based on their consumption. In some cases, it may be that the best option for them is to switch to the LRT, or in others, for example, to start thinking about changing their source to heat the home, where we will assist them in electrifying and reducing their carbon footprint". Maite González points out: "Be that as it may, Endesa will continue to stand by its residential gas customers, helping and advising them so that they make the best possible decision for their pockets, in the short and long term".
Gas market
In Spain there are two gas markets, in which different types of tariffs are available:
- Deregulated market: where deregulated market retailers, such as Endesa, present customers with their tariffs (fixed, flat, with free monthly kWh, etc.), which stand out for offering solutions that save money and hassle; and they may add promotions or discounts.
Currently, and despite the fact that the rise in the wholesale market has forced prices to rise, Endesa has tried to contain the increases in an unprecedented context.
- Regulated market: the last resort retailers offer the Last Resort Tariff (LRT). In this case, the government sets the formula for updating the price of gas that currently depends on the quarterly performance of the international oil and gas markets.
Given the uptick in gas prices in wholesale markets, the government acted on the LRT to limit by 15% the update of the cost of the raw material with which it calculates the tariff. By limiting this cost, which is updated quarterly, the LRT's price variations are also limited quarterly.
In order subscribe a regulated gas tariff (LRT), customers need to contact any of the last resort retailers. The last resort retailer for the Endesa group is Endesa Energía XXI.
About Endesa
Endesa is the largest electricity company in Spain and the second largest in Portugal. The company is also the second largest gas operator in the Spanish market. Endesa operates an end-to-end generation, distribution and marketing business. Through Endesa X it also offers value-added services aimed at the electrification of energy usage in homes, companies, industries and Public Administrations. It has also created a new line of business. Endesa X Way is fully dedicated to electric mobility. Endesa is firmly committed to the United Nations SDGs and strongly supports the development of renewable energies through Enel Green Power España, the digitalisation of grids through e-distribution, and corporate social responsibility (CSR). The Endesa Foundation is also active in CSR-related matters. Our workforce numbers around 9,260 employees. Endesa is a division of Enel, the largest electricity group in Europe.