Reduction in Electricity Costs for Some and Why Titles Can Be Misleading

El Supremo Anula el Bono Social y Obliga a Indemnizar a las Eléctricas

(The Supreme Court Has Annulled the Subsidised Rate for Electricity ‘Bono Social’ and that the Government Must indemnify the Electricity Companies)

Whilst in the main British Expats are still smarting from the removal of the Winter Fuel Allowance, to read the heading in a respected national newspapers it appeared that they had been delivered another blow with the removal of the electricity supply subsidy up till now available for residents on low pensions, large or vulnerable families and the unemployed who had to right to apply for what is known as the ‘Bono Social Eléctrico’.

Two recent sentences from the Supreme Court has declared the subvention for those on low incomes as discriminatory against the electricity companies stating that the companies should not have to suffer the losses.

The two judgements have declared inapplicable the regimen of the financing of the bono social established in 2013 and the principal articles in the reform of of 2014 in the cases brought by EON Spain and Endesa.

The court acknowledges the right of the electricity companies to receive an indemnity for the amounts in concept of the bono social from the date of application until the date of the sentence thought to reach a figure of 500,000.000 euros.

The Supreme Court finds that the financing of the bono social is contrary to the requirement in the 2009 Directive of the European Parliament of 13 July 2009 that states ” obligations shall be clearly defined, non-discriminatory and demonstrable and shall guarantee access on equal terms to domestic consumers ”

What all the above basically means is that the government are responsible for assuring that the companies are not at a loss for providing the subvention and regulate the model of financing. The bono social is still available and again, I suggest that all those who are entitled to the reductions of up to 50% of their electricity costs, should make an application.

Update October 2017, new regulations published with regards to Bono Social, info on our website updated as well.

Bono Social and How to Apply

Please note: The information provided is based upon our understanding of current legislation. It is not legal advice but is provided freely to enable you to be properly informed. We recommend that if you are considering taking action, you should seek professional advice.