OCU requires power companies continue to assume the social bond

The Supreme Court is pending to judge and resolve the last appeal by the Spanish electricity companies which seek another deal in the payment of social bond. It is currently assumed by the companies involved simultaneously in the business of generation, distribution and marketing of electricity, so basically rests with 5 large electricity groups (Endesa, Iberdrola, Gas Natural Fenosa, EDP and Viesgo.

OCU requires electricity companies assume the cost of the social bond and believes there are good reasons for this. The model of liberalization of the energy sector in Spain has allowed and continues to allow large energy groups retain the market shares that operators had before liberalization. New operators have had little incentive to boost competition and good news on the rate of switching in Spain and its proper functioning, moving to Europe, they are inflated by the significant transfer of customers who are doing the trading of reference to its subsidiaries in the free market. And most alarming is that in many cases without consumer knowledge that at most considers that it is accepting an offer or even avoiding an additional cost, but not making a change of company. For OCU they are therefore makeup strategies that do not reflect the reality of the Spanish electricity market where there remains a significant concentration and unfortunately consumers in situations of helplessness without too many options.

These practices have allowed large vertically integrated companies have been able to win customers easily and with limited investment have since used the brand awareness. So in view of OCU it is more than reasonable that large vertical integrated companies assume part of the costs of the liberalization process, which among other things, calls for protection vulnerable consumers. The same case is found in the telecommunications market where for many years Telefónica assumed cost of universal service and currently is split between large companies without major incidents.

Moreover for OCU the debate should be to change the current Social Bono to really respond to the objective of protecting the most disadvantaged households in a flexible and simple. Currently the social bond is inconsistent with the situation of many households that are in really precarious situations, and many others that could be benefiting from it, no access by poor disclosure and difficulties accessing it.