The Government Extends Energy Support Measures and Maintains the Prohibition of Supply Cuts

Council of Ministers Extends Key Energy Policies to Protect Vulnerable Groups

The Council of Ministers has announced the extension of several key energy policies to continue protecting the most vulnerable groups. Among the highlighted measures is the extension of the social electricity subsidy until June 30, 2025, and the prohibition of service disconnections for vulnerable consumers until the end of this year.

Extension of the Social Electricity Subsidy

The social electricity subsidy, which offers discounts of 65% for vulnerable consumers, 80% for severely vulnerable consumers, and 40% for low-income working households, will remain in effect until mid-2025. This measure provides significant financial relief to those most in need.

Prohibition of Service Disconnections

The ban on cutting off essential electricity, water, and gas supplies for vulnerable consumers in case of non-payment will continue until the end of this year. This measure ensures the continuity of essential services for disadvantaged households.

Tax Adjustments

The Government has announced tax adjustments that will impact electricity and natural gas bills. The VAT on electricity will remain at 10% if the average daily market price exceeds €45/MWh. Additionally, adjustments have been made to the Special Electricity Tax (IEE) and the Tax on the Value of Electricity Production (IVPEE).

Support for Energy-Intensive Companies

The deadline for energy-intensive companies to demonstrate compliance with the effective payment period for their suppliers has been extended until the end of 2024. This measure provides companies with more time to adapt to difficult financial conditions. Last year, the Ministry of Industry and Tourism allocated €450 million to 445 industrial companies to compensate for the exceptional increase in natural gas prices in 2022.

The Valencian Community, Catalonia, and Madrid were the main recipients of these subsidies, with a particular focus on the chemical, pulp, paper, and cardboard, and ceramics sectors. For homeowner communities that have not yet reviewed their contractual situation, we recommend taking action quickly. It is crucial to review and manage contracts before the deadline to avoid potential increases in gas costs.

_{Review of Current Contracts}

Ensure that all gas contracts are updated and ready for the transition.

Expert Energy Advisory

At RwC Energy Partners, we offer specialized energy consulting to guide our clients through these policies and help them optimize their energy costs. Our team of experts is dedicated to providing the necessary guidance so that each client can fully benefit from government measures and improve their energy efficiency.

Conclusion

These measures are part of a comprehensive strategy to ensure stability and well-being for citizens and industries in a context of energy volatility. At RwC Energy Partners, we are committed to providing the necessary advisory services to help our clients optimize their energy management and take advantage of these policies.

RwC Energy Partners
Efficiency and commitment at your service