The Government Extends Protection Measures for the Vulnerable-Water/Gas/Electricity

The Government extends the #EscudoSocial measures until February 28, 2022:

?The protection measures for vulnerable consumers are maintained to guarantee the supply of water, electricity and natural gas.
?The temporary suspension of eviction procedures and the launching of homes without alternative housing continues.
?The possibility of extraordinary extension in leasing contracts is maintained.
?The measure is extended so that vulnerable tenants request the moratorium or forgiveness of rent when the landlord is a company, public housing entity or large holder.
?The consideration of essential services for the protection and assistance to victims of gender violence will continue to be applied. The reception, information or legal advice services are maintained 24 hours a day for the victims with the support of social assistance. The #CMin approves a package of measures to expand consumer protection against rising energy prices. More transparency is introduced into the market to facilitate decision-making and help the industry close long-term electricity contracts.

➡️The discount on the electricity bill for the social bonus for vulnerable consumers will grow from the current 25% to 60% and from 40% to 70% for the severely vulnerable until March 31, 2022
➡️The budget for the thermal social bonus is doubled in 2021, to 202.5 million

In addition, the Government continues to act to contain the impact of gas prices on international markets on consumers and the Spanish economy. Today an RDL is approved that applies a reduction of the extraordinary temporary benefit of the generation plants.

On the other hand, to promote transparency, the Executive introduces new obligations for energy companies, which allow to know the price formation mechanisms. Thus, companies must submit transparent information on the prices of available offers to the CNMC.

?In the wholesale electricity market, it will be mandatory for producers and traders to inform the CNMC in an updated manner on the configuration of prices.
?The retailer will communicate one month in advance of any modification in the contracts.

We thank the Spanish government for the above information translated from their FB page.

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.