How can fighting the energy crisis benefit your company?

In October 2022, the Spanish Government declared a new package of measures to cushion the rise in electricity and gas prices. This 2023, these measures are still in place to continue to combat the energy, gas and water crisis. The aim is to ensure that people have access to these services without destroying their budget. Wondering how the energy crisis will be tackled? Stay until the end!

Measures proposed by the International Energy Agency to counter the energy crisis

Due to the energy emergency in Europe, as a consequence of the war between Ukraine and Russia, European governments were forced to take action to fight it, reduce fossil fuel consumption and redistribute it fairly. European governments were forced to take action to fight it, reduce fossil energy consumption and redistribute it fairly. 

For this reason, the International Energy Agency proposed these 4 measures: 

Saving energy for large consumers

It is a measure designed to prevent overconsumption by large industries and by utility buildings and shopping malls.

• Industries: it is expected to limit the demand for the operation of the most consuming and non-essential industries. In addition to managing demand by distributing energy use throughout the day and night. Decarbonization of essential industry will also be implemented.
• Public and commercial buildings: demand will be limited by reducing the operation of the most non-essential consuming buildings. Demand will be managed by adjusting indoor temperature. Less heating in winter and less cooling in summer. Finally, essential buildings will be decarbonized.

Saving energy in transportation

To save energy, European governments agreed to implement the following changes:

• Introduce affordable climate ticketing for public transportation.
• Prohibit unnecessary short-haul flights and promote rail alternatives.
• Prohibit excessive use of private jets.
• Promote more efficient driving.

Help heat homes and produce renewable energy.

This is another measure proposed by the International Energy Agency for households to reduce energy consumption and some indications were:

• Prohibit the sale of new boilers.
• Prohibit energy companies from disconnecting homes and establish payment alternatives.
• Introduce the plan to replace boilers with heat pumps or aerothermics.
• Train more installers in energy efficiency.
• Promote materials industries that help reduce energy consumption.

Taxing polluters

• Limit subsidies that maintain fossil fuel consumption.
• Requiring fossil fuel companies to be taxed at 100%.
• The collection of the windfall profits tax must be fairly remunerated.

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What measures will Spain implement to combat the economic crisis?

In the case of the Spanish Government, the measures taken in previous years will be maintained. The aim is to protect people and small and large companies from the consequences of the energy crisis in Europe.

Do you want to know what these measures are? Check them out here!

• Reduction of the electric bill.
• VAT rebate on electricity bills.
• The social bonus for electricity.
• The Tariff of Last Resort Neighborhood (TUR).
• Thermal social voucher.
• Temporary energy justice voucher.

How long will the reduction in electricity bills be maintained?

With the goal of facing the energy crisis that the country is suffering, the government decided to maintain the measures proposed in the past 2022. 

One of these measures is the reduction in the electricity bill, where the Value Added Tax (VAT) is reduced to 5% until December 31, 2023. This will apply to the gas bill, biomass for heating and wood for firewood. 

In addition, the reduction of the excise tax on electricity to 0.5% and the cancellation of the tax on the value of electricity production are maintained until the same date.

Who can benefit from the VAT rebate on electricity bills?

In order to enjoy this special benefit that responds to the energy crisis, it is necessary to comply with some special characteristics. We will tell you about them!

Who will not be able to suspend essential supplies if they wish to do so?

Until December 31, 2023, people who are considered vulnerable, severely vulnerable or at risk of social exclusion will not be able to suspend the supply of electricity, natural gas and water.

They are considered vulnerable persons, the natural persons who are holders of an electricity supply point and who avail themselves of the voluntary price for the small consumer. In addition, they also comply with the requirements established in article 3 and 4 of Royal Decree 897/2017, of October 6.

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Who can benefit from the Bono Social Eléctrico and how can they apply for it?

This bonus, called social bonus, has been designed as a support for consumers recognized as vulnerable or severely vulnerable. This will enable them to benefit from and cope with the energy crisis that the country is suffering as a result of the war in Ukraine and the pandemic.

This consists of a 65% to 80% discount on the electricity bill. It can be requested by telephone, e-mail, ordinary mail or fax from the reference marketers obliged to offer and finance it. At present, 1.2 million households receive the benefit of this bonus.

What is the Tariff of Last Resort (TUR)?

The Tariffs of Last Resort (TUR) are a measure created with the intention of facing the energy crisis in Spain and regulating the price of gas in community boilers. In this way, it will be possible to avoid debts in the communities and there will be an increase in non-payments and supply cuts.

In order for communities to benefit from the new TUR, they will be required to install individual heating meters by September 30, 2023. Meanwhile, companies that take advantage of this new measure will have to pass on the savings obtained in the cost of natural gas purchases in full.

What does the Bono Social Térmico consist of? 

The social bonus for thermal uses originated in 2018 and will be maintained also in this 2023. This is an aid to reduce costs in heating, domestic hot water or cooking.

It is paid in a single annual payment and is counted depending on the level of vulnerability of the person and the climate zone in which the home is located. The average annual aid applied is 375 euros per beneficiary per year and the minimum annual payment for this year is around 40 euros.

Let’s talk about the Temporary Energy Justice Bond.

This measure will also be extended until December 31 of this year. It seeks to ensure that low-income households are not so affected by the energy crisis. Therefore, it implies a 40% discount on the voluntary price for the small consumer (PVPC).

Individuals may apply for this bond, for their primary residence, if they meet the following requirements:

It is important to remember that people who have this benefit will not be able to apply for the bono social térmico.

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If you are interested in learning more about the new measures against the energy crisis in Spain, I invite you to contact our professionals. They will provide you with the advice and guidance you need to make use of the benefits that these new measures bring to you. 

Contact us through our email tasconsultoria@tas-sl.es and request your free advice. Do not miss the opportunity to enjoy these new benefits.