The Spanish government approves price caps in emergency situations

Coinciding with the crisis in the rail sector, where the prices of alternative transport such as air travel have come under scrutiny, the Spanish government has approved a royal decree-law that will allow the executive branch to "cap prices of services or products in an emergency situation that exceptionally alters supply and demand," as explained by the Ministry of Consumer Affairs. The regulation, which will require the approval of Congress, contemplates "incorporating a maximum price limit in emergency situations on an extraordinary basis." A situation will be considered an emergency when declared by civil protection authorities or so determined by the Council of Ministers, as reported by the Ministry of Consumer Affairs in a statement. The Council of Ministers will also be responsible for limiting the validity of the price cap. Furthermore, consumers will have to be informed about the maximum and minimum prices prior to the emergency and will be able to demand the automatic refund of any amounts that have exceeded the cap.

Another measure affecting consumers, approved by the Council of Ministers this Tuesday, concerns calls spam. The Spanish government is taking another step to crack down on calls from electricity companies. The Council of Ministers approved a royal decree on Tuesday that prohibits, in all respects, telephone calls for advertising or selling any product unless a household has previously requested it or the consumer is the one calling the company to request information. The prohibition modifies the General Regulations for the Supply, Marketing, and Aggregation of Electricity—a change that does not require congressional approval—and "strengthens and complements" the current telecommunications and customer service legislation, recently approved by Congress, which already targets these types of calls. "With the new decree, commercial calls for the sale of electricity are generally prohibited unless there is an express and unequivocal request from the consumer," stated the Third Vice President and Minister for Ecological Transition, Sara Aagesen, at a press conference on Tuesday. The minister also explained that electrical products being marketed will have to be fully explained to consumers before they decide whether to subscribe to the scheme. The decree also limits penalties related to long-term customer contracts; creates a specific role for the protection of electricity consumers; and prohibits cutting off electricity supply to consumers who are dependent on electricity for medical reasons, among other measures.

"Electricity regulations will be the most protective and offer the greatest guarantees to consumers, complementing other legislation," stated the Ministry for Ecological Transition. The Spanish government has long sought to limit these commercial calls, and last December Congress approved the Customer Service Law, which already addresses these types of calls. One of the new developments this Tuesday is that non-compliance with the decree by some electricity retailers—those with the largest market share—could result in a fine linked to the sanctions regime of the 2013 Electricity Sector Law. In this regard, the penalty can range from €60. Failure to comply with a consumer protection measure can constitute a serious offense. The National Commission on Markets and Competition (CNMC) will be responsible for resolving these situations, and therefore initiating a fine.