Portugal to let households move to cheaper regulated gas tariffs

Portugal’s government will allow households and small businesses that buy natural gas in the liberalised market to move to regulated tariffs and avoid huge price increases announced by utility companies, the energy minister said on Thursday.

The measure, which will be in force for 12 months starting Oct. 1, is in response to the increase in the cost of living, Duarte Cordeiro told a news conference. Following a push to liberalise energy markets since 2010, there are 1.4 million customers among Portuguese households and small businesses that have chosen to have their gas bills defined by market prices and are currently barred by law from switching back to a regulated tariff, Cordeiro said, something the government would now revoke.

Government-regulated tariffs are currently lower than those in the free market and will increase by just 3.9% on Oct. 1, while some utilities have already announced price increases of up to 200%, Cordeiro said. He estimated that consumers on regulated tariffs would pay less than half of what they would otherwise.

All low-pressure gas consumers with an annual consumption below 10,000 cubic metres can switch to a regulated tariff. EDP, Portugal’s largest supplier of natural gas to households, with 650,000 customers, said on Wednesday its prices would rise by 170% in October after holding them for months despite a surge in international gas prices.

In terms of household market share, EDP is followed by Galp with 23.3%, and Goldenergy with 12.3%.

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