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Council signs agreement protecting low-income households from electricity cuts

signatura conveni endesaEarlier today, the CiF office of the presidential cabinet signed an agreement with the Endesa company to facilitate utility payments for low-income individuals at risk of power cuts. The agreement was signed by CiF president Jaume Ferrer and Endesa’s director general in the Balearics, Ernesto Bonnín.

Under the terms of the agreement, Endesa will facilitate payment in cases where Formentera residents run the risk of losing electricity service. According to social welfare councillor Vanessa Parellada, the new process will involve the Formentera Council contacting Endesa to let them know if a financially-struggling customer is registered with CiF social services and if that customer has recently received a favourable report from the department.

As per agreement terms, Endesa and the CiF will base repayment requirements for the unpaid bills on assessments concerning the struggling individual that have been overseen by the Council.

The Council, said Parellada, will intercede in those cases that non-payment of a utility bill threatens to translate into a service interruption for resource-strapped families. “We will assess households on a case-by-case basis to determine how to proceed, whether that means reducing or forgiving the sum owed. In the absence of other options the administration will consider paying the bill itself,” she said.

The new deal comes under a framework agreement signed 11 July last between the utilities provider and the FELIB, the organisation that represents municipalities in their dealings with Endesa.

The Endesa-FELIB framework agreement is part of Directive 2009/72/CE (13 July 2009), which establishes common rules for the internal market in electricity. The directive requires Member States of the European Community to adopt measures to guarantee electricity service to financially-struggling individuals.