ERSE proposes a decrease of 0.4% as of January in the regulated market, which is equivalent to 18 cents per month.
The electricity bill is one of the most costly charges for households in Portugal, but the good news is that the amount to be paid will fall for the third consecutive year. The Energy Services Regulatory Entity (ERSE) has already advanced with its proposal for electricity tariffs in 2020, predicting a 0.4% cut in prices to be applied in the regulated market from January.
It should be noted that the announced reduction of 0.4% will still have to be validated until December 15th, coming into force on January 1st, 2020, explains the Portuguese online journal ECO, which prepared a guide with questions and answers on the subject, which we have summarised below.
According to ERSE, "the tariff proposal consolidates the movement initiated in the 2016 tariffs of reduction of the tariff debt, with this reduction in the 2020 tariffs of around 460 million euros, around 14% of the value of the tariff debt of 2019, now standing below the value of 2012".
Who will benefit from this measure? According to the publication, the downward revision of the electricity tariff applies only to consumers who are in the regulated electricity market, and the latest data point to the existence of 1.06 million customers in this market (17% of the total). It will be, for these customers, the third consecutive year of invoice relief, after 18 years followed by increases.
This 0.4% reduction in the value of electricity will represent a monthly saving of 18 cents, taking into account an average monthly bill of 43.90 euros.
In the case of customers with social tariffs, on an average invoice of 27 euros, the cut will be of 11 cents per month, a value that already includes the application of a monthly social discount of 13.81 euros.
Those who are in the liberalised electricity market in Portugal, about 5.5 million customers, are not covered by this price cut, which applies only to customers who are in the regulated market. However, this does not mean that the operators in this segment will not in any way reflect this price evolution in their invoices, states the publication, pointing out that this has been the recent trend.