The Portuguese Ministry of the Environment and Climate Action has unveiled a €3bn package to lower energy bills of companies in 2023. The plan, which is due to come into force on 1 January 2023, would save around 30% of the estimated electricity tariffs and between 23% and 42% for the gas tariffs via a mix of state spending and regulatory measures.
Electricity rates are forecasted to double under the government's most unfavourable scenario to an average of €258/MWh in 2023, while gas prices could more than triple from the current €53.3/MWh. Consequently, companies’ electricity cost would rise from €1.7bn in 2022 to €6.5bn in 2023, and gas bills from €749m to €2.7-4.9bn in 2023.
The package will require a direct transfer of €1bn from the 2022-2023 budget, while a further €500m will come from other policy measures and the remaining €1.5bn from yet unspecified regulatory measures.
In May 2022, Portugal and Spain set a gas price cap for natural gas used to generate electricity in gas-fired, dual-fuel-fired and cogeneration power plants until May 2023. The cap was set at €40/MWh for the first six months, before rising by €5/month to €70/month at the end of 2022.
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