Modification or suspension of payment for supplies in commercial establishments

Measures adopted by Royal Decree Law 11/2020 for the self-employed and companies in relation to the electricity and natural gas supplies of their establishments

As a novelty regarding the measures adopted to date by the Government of Spain to alleviate the economic consequences derived from the crisis caused by Covid-19, the RDL 11/2020 has provided for a series of measures aimed at the self-employed and companies affected by it in relation to the electricity and natural gas supplies of their establishments, allowing them to modify or suspend their supply contracts and, even, postpone the payment of the consumptions made during the period of the state of alarm. Specifically, the following measures have been adopted:

Possibility of all companies and the self-employed to suspend and/or modify the electricity and natural gas supply contracts of their commercial establishments

What can be requested?

The temporary suspension or modification of the electricity or natural gas supply contracts of commercial, professional or business establishments.

Who can apply?

The regulation establishes that all the self-employed and companies may request the suspension or modification of their electricity or natural gas supply contracts of which they are holders, and this regardless of the activity to which they are engaged and the impact that the crisis caused by Covid-19 has had on their billing.

With regard to companies, note that the possibility of suspending or modifying their contracts reaches all companies regardless of their size, corporate form, billing, etc.< /p>

When can I apply?

It may be requested during the state of alarm or any of its extensions.

How can I apply?

RDL 11/2020 does not provide for any special procedure, so consumers who want to take advantage of this measure must process it through the usual communication channels with their marketing entity and/or distributor.

Does the request for modification or suspension entail any cost?

As expressly established in RDL 11/2020, marketing entities are obliged to attend to requests for modification or suspension made by consumers without any cost or penalty for the themselves.

Can supply entities refuse to respond to requests for modification and/or suspension made by consumers?

RDL 11/2020 clearly establishes that the entities that sell and/or distribute electricity or natural gas will be obliged to attend to the requests for modification or suspension of the contracts that are sent to them by the consumers.

What will happen to the suspended or modified contracts when the alarm state ends?

For both electricity and natural gas supplies, RDL 11/2020 provides that, once the state of alarm has ended, the self-employed or companies that have requested the suspension or modification of their contract may request its reactivation or a new modification of the supply contract within three months, being able, if they prefer, to keep the suspension or modification adopted during the state of alarm, all at no cost to the applicant.

Ability to suspend payment of bills for electricity, natural gas, and petroleum products

In addition, RDL 11/2020 provides for the possibility of suspending the payment of invoices derived from the consumption of electricity, natural gas, manufactured gases and liquefied petroleum gases by channeling that correspond to billing periods that contain days integrated into the state of alarm.

Who can apply?

All the self-employed and SMEs may request suspension of payment, regardless of the activity they are engaged in and the repercussion that the crisis caused by Covid-19 has had about their billing.

When can I apply?

It can be requested for the entire duration of the state of alarm, including all its extensions.

When will the suspended invoices have to be paid?

When the state of alarm ends, the total amount of the invoices not paid by consumers who have requested the suspension of their payment will be regularized in equal parts in the invoices that are issued and correspond to the billing periods in which the following six months are integrated.

How can I apply?

The request for suspension of payment of bills for supplies must be made, in any case, by telematic means that do not involve physical displacement, and must clearly identify the owner of the supply point and the Universal Supply Point Code (CUPS).

Can I change the supply company if I have requested the suspension of payment of invoices?

RDL 11/2020 provides that the self-employed and SMEs that avail themselves of the billing suspension may not change their electricity or natural gas supplier until they have fully paid the all suspended payments.

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LEGAL ADVICE AGAINST COVID-19

We make available to all our clients a comprehensive legal advice service in the face of the crisis generated by covid-19 for companies, the self-employed, workers and those affected by contagion. For this, we have a team of lawyers specialized in commercial, labor, bankruptcy and compensatory valuation prepared to provide 360º solutions.

José Luis Casajuana Ortiz
Partner of J. L. Casajuana and head of the international area< /a>