Endesa estimates that 142,000 Spanish families will benefit this year from the automatic renewal of the social bonus

• All those clients for whom support expired at the end of the year (82% of the total number of beneficiaries who need to it in 2022) will not need to complete any procedures in order to continue receiving the Social Bonus providing they continue to meet the criteria for assignment defined by the Government 
• The extraordinary discounts on the invoice have been extended until 30 June so vulnerable consumers will continue to get a 60% discount and severely vulnerable customers 70%
  
• The modification of requirements means they now cover a broader area and this should enable more people to access the discounts. Endesa's clients currently include 415,000 Spanish families who qualified for the social bonus at the end of the first quarter
  
• This assistance is intended for pensioners, officially designated large families, people in vulnerable situations and those affected by the economic crisis resulting from COVID-19 and beneficiaries of the minimum vital income are now included 
  

Madrid, 20 April 2022 - Nearly 142,000 Spanish families, clients of Endesa, who would have to renew the social bonus before the end of the year, will not have to complete any procedures. This is one of the practical applications included in the new Royal Decree Law 6/2022 that modifies key aspects of the Social Bonus, an assistance measure whose objective is to protect those households considered vulnerable due to their social-economic status. 

Until the end of March, all those beneficiaries of this discount, with the exception of officially-declared large families, who just needed a valid card, had to process a renewal application every 2 years to verify that they continued to meet the criteria for assignment defined by the Government in order to maintain the discount on their electricity bill. Now, renewal will be automatic provided the same requirements are still met. This means that all those who would have been obliged to renew it by the end of the year, about 82% of the total beneficiaries whose cards expired in 2022 due to income criteria, will now not have to complete any procedures, since Endesa will help the verification to be made directly with the Ministry of Ecological Transition, which is the entity which decides whether aid can continue to be received. 

The measure means that all those consumers who are assigned the Social Bonus from 31 March will be entitled to automatic extensions every two years indefinitely. Two months before expiry, a specialised team will verify whether the requirements are still met and then inform the client for his/her peace of mind. 

Furthermore, those who had been assigned the aid before the new regulations came into force will have an automatic extension for two years from the time their card expires. Two months before it expires, Endesa will notify them so that they will be able to submit the application and provide the new support documentation in accordance with the new requirements. From that moment on, renewals will also become automatic every two years, provided that the conditions are met.

The entry into force of the new Social Bonus also establishes changes in the requirements, which should enable more people to access the aid. According to an estimate made by Endesa, this could mean an increase in beneficiaries of up to 50% based on the calculation provided by the Government, which estimates that in Spain it could be extended to 600,000 more beneficiaries. 

Endesa currently has more than 415,000 clients who benefit from the Social Bonus. Of these, about 210,500 are vulnerable families who get a 60% reduction on their bill for electricity consumption, whilst a further 204,600 are severely vulnerable and get a discount of 70%. These discounts will be valid until 30 June 2022. After that date, the discounts will again be 25% for vulnerable customers and 40% for the severely vulnerable, as established by the regulations. 

With regard to typology, about 61% were people who were vulnerable in accordance with income criteria, 31% were officially-declared large families, 7% were pensioners, and 1% corresponded to groups especially affected by the economic crisis resulting from COVID-19 who were able to benefit from this assistance which will remain in force until 30 June.

Of the total number of clients, 51% were considered vulnerable by the Ministry and 49% were considered severely vulnerable. 

The new RDL modifies the income criteria and establishes new, broader IPREM multipliers. For example, with the above criteria, the income threshold to be entitled to the aid (vulnerable consumer) of a couple with two children was €20,266. With the new requirements, this would now be €22,698.

Those who receive the Minimum Vital Income may benefit directly providing they give proof of this condition when processing their application for the Social Bonus. Finally, the concept of family unit is replaced by that of cohabitation unit (people residing in the same household and who are united by a bond as a de facto couple, second degree consanguinity, affinity, adoption, etc.).

How to process the Social Bonus

Users who wish to request the Social Bonus for the first time can do so through the channels enabled for this purpose: The APP (EnergíaXXI Social Bonus), e-mail (bonosocial@energiaxxi.com), the telephone channel (800 760 333), the website https://www.energiaxxi.com/bono-social and by post. Those who prefer may also process it in person at Endesa's Service Points and Commercial Offices.

When Endesa receives the documentation, a specialised team responds to the applications and confirming whether all the necessary documents have been received. If anything is missing, Endesa will inform the client so this can be corrected and when the documentation is complete, an application will be sent to the Ministry of Ecological Transition and Demographic Challenge for verification. Finally, the Company informs the customer of the Ministry's decision.

On the https://www.energiaxxi.com/bono-social website you will find all the information about this discount, the requirements and the documentation that needs to be provided to be able to request it. 

What is the Social Bonus?

The Social Bonus is a discount on the electricity invoice regulated by current legislation that aims to protect households considered to be vulnerable because of their social-economic conditions. Although it is processed by the listed company marketing it, the Spanish Government assigns the bonus, once it verifies compliance with the criteria. The discount on the customers' bill is economically assumed by the company marketing the bonus. This helps the most disadvantaged groups to pay their bills. In addition, beneficiaries of the Social Bonus for electricity have a longer period of time to pay unpaid bills than other consumers (a period of 4 months from the first notification of non-payment, compared to the general period of 2 months).

To qualify for the Social Bonus it is essential to be a customer of a listed supplier (Energía XXI for example), to be the holder of a contract with a PVPC electricity tariff and a power equal to or less than 10 kW in the habitual residence, as well as meeting other specific requirements that can be consulted on the https://www.energiaxxi.com/bono-social website

Continuity of supply

The regulations also protect vulnerable households that, despite being eligible for the Social Bonus, cannot pay the bill. The Electricity Sector Act stipulates that service cannot be interrupted in a home where there is at least one child under the age of 16 in the household, or where the contract holder or one of the members of his or her household is a person with a disability equal to or greater than 33% or with a degree of dependency II or III. In these cases, customers should contact social services to issue the corresponding document accrediting the situation and then present it to their reference retailer. 

Vulnerable customers at risk of social exclusion, that is those customers considered to be severely vulnerable and who are cared for by their social services, will not need to pay an invoice, provided the social services give proof that at least 50% of the invoice will be paid to reference retailer within 5 months of the invoice being issued. The retailer will assume responsibility for the remaining 50%.

Finally, a recent regulation established the Minimum Vital Supply, a measure designed for beneficiaries of the Social Bonus who incur in non-payment. They will have an additional 6 months to make payment for their bill. During these 6 months, the supply may not be cut off, but, if they have a contracted power of more than 3.5 kilowatts, their power will be reduced to 3.5 kilowatts. This measure cannot be requested, but the consumer will receive notification from the supplier of the date from which the minimum vital supply will be applied.

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. 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-distribución, and corporate social responsibility (CSR). The Endesa Foundation is also active in CSR. Our workforce numbers around 9,260 employees. Endesa is a division of Enel, Europe’s largest electricity group.