Spain caps regulated natural gas price increases at 15%

In Spain, more than half of natural gas customers in the Extremadura region utilize the government-regulated Tarifa de Último Recurso (TUR). As of late 2024, 52.2% of users in the region—totaling 53,573 customers—were enrolled in this scheme, a figure significantly higher than the national average of approximately 39%.

To mitigate the impact of rising energy costs, the Spanish government has implemented a cap on the quarterly price increases for the TUR. While the standard formula suggested a price hike of over 45% for the final quarter of the year, a royal decree has limited the increase to 15%.

This mechanism involves a deferred cost of approximately 200 million euros. The difference between the regulated cap and the actual market cost is advanced by the four authorized last-resort suppliers: TotalEnergies, Naturgy, Iberdrola, and Endesa. These companies will recover the difference, including associated financial costs, through subsequent quarterly revisions starting in January 2027.