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Social Rate

Social Rate

 

The Budget Law for 2016 made alterations to the process of attribution of Social Rates for Electricity and Natural Gas, so this will be automatically applied from July 1st 2016:

  1. The Directorate General for Energy and Geology promotes setting the number of end users who benefit from the social rate in terms to be defined by the Government members responsible for finance, social security and energy.
  2. For purposes of the provisions set on the preceding number, the electricity power suppliers should submit to the Directorate General for Energy and Geology, all the needed information in order to identify the holders of electricity supply contracts.
  3. The processing of personal data set on numbers 1 and 2, has no prior opinion from the National Commission for Data Protection.
  4. Potential beneficiaries will be identified and the individual information sent to each one, with a warning stating that if they oppose to the allocation of social rate, they have notify it within 30 days, under penalty of automatic allocation.
  5. Keeping the social rate depends on the confirmation of the financially vulnerable final customer status, stated in Article number 2, by the Directorate General for Energy and Geology, every September.
  6. Without prejudice to what is stated in the preceding paragraphs, the beneficiary, along with social security institutions, relevant authorities and the Tax and Customs Authority; may require a proof of his/her status as beneficiary to submit it to the electricity power and natural gas supplier.
  7. The beneficiary who doesn’t fulfill the requirements needed for the granting of the social tariff, must notify it to the social security relevant institutions, within 30 days
 

How is the Social Tariff applied on the liberalized market?

The application of the Social Rate on the liberalized market involves applying prices to each customer in those markets, social discounts for them to access to essential services supply of electricity and natural gas as published by the ERSE in directives:

  • Electricity power: Directive nº 14/2015
  • Natural gas: Directive nº 10/2016

The new legislation provided in the Budget for 2016 indicates that: “The current social discounts for the access to the essential supply of electricity power and natural gas, were redesigned to define a unique and automatic model and to increase the number of effective beneficiaries, in the terms set out in the Decree Law n.º 138-A/2010 from December 28th, modified by the Decree Law n.º 172/2014 from November and Decree Law n.º101/2011, from September 30th, “with no decrease in the value of the discount to practice in front of the social discounts in force until this date".

 

The discounts to apply to social clients are the following:


Electricity

Hired Power (kVA) Power price (Euros/day) Energy price (Euros/kWh)
  Power Term (€/day) Energy Term (€/kWh) Power Term (€/day) Energy out of empty (kWh) Energy empty (kWh)
3,45 0,1365 0,0287 0,1365 0,0297 0,0292
4,60 0,1820 0,1820
5,75 0,2275 0,2275
6,90 0,2729 0,2729
 

Gas

Escalão Fixed term (Euros/day) Energy price (Euros/kWh)
1 0,0058 0,016824
2 0,0321 0,010913

These discounts will be applied to the rates of every customer with the right to enjoy the social rate and with a hired (non-social) Endesa product.

The ASECE discount is also removed since this is already included in the savings attributed to customers with Social Rate right.

 
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