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Those irritating phone calls from energy companies trying to flog you a new electricity deal are about to become a thing of the past in Spain, with firms facing fines of up to €6 million if they don't stop pestering customers.

 

The Council of Ministers approved a new decree on Tuesday February 10 that bans commercial calls for the sale of electricity unless consumers have specifically asked to be contacted. It’s all part of a wider crackdown on dodgy sales practices and aims to rebalance the scales between customers and electricity companies.

 

Sara Aagesen, Minister for Ecological Transition, said the new legislation aims to modernise the electricity system and protect consumers, especially the most vulnerable.

 

"This is a regulation that aims to guarantee fair and transparent access to electricity in a market that we know often generates distrust among consumers, perhaps amplified by the complexity of matters related to the electricity sector," she said.

 

Under the new rules, any violation of consumer protection measures will be considered a serious offence punishable by fines ranging from €600,001 to €6 million.

 

The regulation also establishes a specific prefix for commercial calls so consumers can instantly recognise when an energy company is ringing.

 

The decree also makes it much easier and cheaper to change electricity suppliers. Both households and small and medium-sized businesses with contracted power of less than 15 kilowatts can now terminate their contracts at any time without penalty, except during the first year of a fixed-price contract in the free market. Even then, the penalty can only be a maximum of 5% of the energy pending billing for that year.

 

Vulnerable consumers switching to take advantage of the Voluntary Price for Small Consumers won't face any penalties at all, not even for additional services contracted along with the electricity supply.

 

When a price change occurs because of a modification to contract conditions or a new contract, companies must provide consumers with a separate document in advance that clearly explains the effects of the change on their final bill, including a comparative table of prices before and after.

 

If a consumer with a social bonus wants to switch to the free market, the new supplier must not only present an annual estimate of the price difference but also obtain their express consent and inform the CNMC monthly of these switches by vulnerable consumers so they can be verified.

 

Aagesen said the government hopes the new rules will put an end to shady sales tactics and stop companies pushing confusing deals that don't benefit customers.

 

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