Portugal's regulator proposes an increase of 1% in electricity tariffs by 2026

The Portuguese electricity market regulator ERSE proposed a 1% increase in regulated tariffs, which 820,000 households and businesses pay. This will also have an indirect influence on the market prices charged to utilities, said ERSE.

The government has forecasted an inflation rate of around 2% for the next year. This slight increase will be implemented in January 2026. ERSE will confirm the rise by 15 December, after consulting consumers, businesses and other groups.

Tariffs will increase by 2.1% in 2025.

ERSE stated that the lower increase in tariff was based on the expectation utilities would buy smaller amounts of energy from producers who have been assured higher remuneration.

In a press release, ERSE said that the increase was also based on "tariff-containment measures" estimated at around 401 millions euros ($467million).

It said that the containment measures will be funded by revenue from auctions for greenhouse gas emission allowances. Taxation on petroleum products and windfall profits in the energy sector will also be used to fund them.

Around 5% of the total electricity consumed in Portugal is consumed by 820,000 households and small businesses that have tariffs regulated.

Utility companies must also take into account the ERSE rates when calculating the prices they charge their 5.7m customers on the liberalised market.

The prices regulated by ERSE are fixed for the entire year. They can only be adjusted quarterly.

(source: Reuters)