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HomeWorld AffairsPortugal Will Increase Electricity By 0.2% To Domestic Consumers In 2022

Portugal Will Increase Electricity By 0.2% To Domestic Consumers In 2022

Erse, the Portuguese CNMC, has announced its proposal for electricity rates for 2022 and the parameters for the regulatory period from 2022 to 2025 and proposes a slight increase of 0.2% for domestic consumers and SMEs, despite the evolution of their wholesale market is practically the same as the Spanish one.

End-user regulated electricity rates for 2022 in the low-voltage segment, compared to the 2021 average, which includes residential electricity consumers and SMEs, will increase by 0.2% on average.

The increase, as justified by the Portuguese regulator, is based on the reduction of network access rates by 52.2%, mainly supported by the favorable evolution of the differential between stable power rates for the generation of the system special (including renewables and cogeneration) and higher wholesale electricity prices.

The average purchase cost in the wholesale electricity market for the supply of regulated customers is assumed to be 105.5 euros / MWh for 2022, compared to the 49.5 euros / MWh initially assumed in the rates for 2021, which rose 5 euros / MWh in July and September of this year.

The preliminary rate of return for companies will be 4.3% before taxes. The final rate in the period 2022-25 will be set for year t, according to the daily average of the yield on the 10-year Portuguese public debt between October of year t-1 and September of year t – this mechanism provides for a floor and a cap of 4% and 7.3%, respectively.

In accordance with the electricity regulation standards in Portugal, the Tariff Advisory Council, which includes representatives of regulated companies and consumers, will issue its non-binding opinion on November 15. The ERSE will then approve the rates and the final parameters until December 15, 2021.



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