Endesa promotes the renewal of the Social Bonus to 82% of beneficiaries who have not yet applied

• The Social Bonus of more than 27,000 families is expiring at the end of March and the beneficiaries have not applied for its renewal. The Social Bonus offers a direct discount on the electricity bill of between 25% and 40%.
• Since the end of automatic extensions, in September last year, the number of Endesa customers who can benefit from the bonus has been reduced by 16.7%.
• Endesa notifies its customers between 1 and 3 months in advance of the expiration so that they can handle their renewals, and places at their disposal all the means to do so, without having to even leave their home.
• The company processes a monthly average of 36,600 applications for Social Bonus in Spain, with around 70% favourable resolutions approved by the Ministry of Ecological Transition. This aid intended for pensioners, large families and vulnerable persons.

Eight out of ten families with their Social Bonus expiring this March and who are customers of Endesa have not yet processed their renewal. The company is intensifying communications to beneficiaries and promoting these renewals so that more than 27,000 families can continue to benefit from a 25% to 40% reduction in their electricity bill. They account for 5.9% of the total beneficiaries currently receiving this discount in Spain.

Endesa notifies its customers between 20 and 90 days in advance of the expiration so that they can handle their renewals. At the moment, it is reinforcing its information campaign through direct messaging (via email, SMS and with the electricity bill issued before the end of the deadline), with information in the media and working in conjunction with social services. The aim is to remind and facilitate the renewal of the Social Bonus to customers who must renew it after the two years established by law; and to provide information on how it can be processed to the people who are requesting it for the first time. If they do not renew their Social Bonus on time, the beneficiaries will no longer receive the discount and must request it again.

To this end, Endesa is making available to customers all means necessary, without having to even leave their home. Go to the section on the Social Bonus to find all the information on how to apply.

End of automatic extension

The reduction in renewal applications, and therefore the number of beneficiaries, was first noticed after the end of the Social Bonus' automatic extension last September, which the Government had established as a support measure during the COVID-19 crisis. In fact, at the beginning of February, 378,973 Endesa customers are assigned Social Bonus, compared to more than 450,000 in August last year, i.e. 15.7% less.

The company processes a monthly average of 36,642 applications for Social Bonus in Spain, with around 70% favourable resolutions approved by the Ministry of Ecological Transition. This aid intended for pensioners, large families and vulnerable persons.

Currently, around 8.47% are pensioners, 31.91% are large families, 58.98% are people in vulnerable situations on the basis of income criteria and 0.64% are groups particularly affected by the COVID-19 economic crisis. Of these, 52.12% have a 25% discount on the bill because they have been considered vulnerable by the Ministry of Ecological Transition and the Demographic Challenge, while 47.88% are severely vulnerable and receive 40% support.

Active contracts by group

Reinforcement in face-to-face channels

Endesa has in place a Contingency Plan for Social Bonus customer service in face-to-face channels to foster appointment-making and so that, for example, there is a dedicated queue for Social Bonus to provide all the necessary information and thus facilitate the arrangements relating to renewals or new applications.

When Endesa receives the documentation, a specialised team responds to the applications, confirming whether all the necessary documents have been received. If any documents are missing, the customer is informed and then the file is sent to the Ministry of Ecological Transition and the Demographic Challenge for assignment. Finally, the company informs the customer of the Ministry's decision.

What is the Social Bonus?

The Social Bonus is a discount on the electricity bill regulated by current legislation that aims to protect households considered vulnerable because of their socio-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 electricity Social Bonus have a longer period of time to deal with 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 company marketing it, to be the holder of a contract with the PVPC electricity tariff (with or without off-peak use discount) and a power equal to or less than 10 kW in the habitual residence, in addition to meeting other specific requirements detailed in the attached table.

In September, in the economic context caused by COVID-19, the government expanded the Social Bonus to the unemployed, people under ERTE (temporary redundancy plan) and entrepreneurs who have seen their income reduced, all of whom will be able to access the Social Bonus at a discount of 25% until 30 June 2021. Also, under RD 897/2017, they have the possibility of applying again from 1 July or before that date, if they fail to meet the above requirements.

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, social services must issue a certificate proving these circumstances for submission to the company.