Did you know that you can choose the electricity supplier for your home in Portugal? Unlike what happens in most of Brazil, where customers only have one company that serves their homes, in Portuguese territory residents are free to hire the company that will supply energy to their houses or apartments.
By 2025, there are two categories for customers to choose from: the free market and the regulated market, which is expected to close within the next three years. In the so-called free market, companies have the autonomy to determine the price of energy and readjustments whenever they deem necessary. In the regulated market, basically composed of SU Energia and cooperatives in the interior of the country, the rate is fixed for the whole year.
It is common for commercial representatives to go door to door offering plans, since there is high competition in the free market. According to the Energy Services Regulatory Authority (ERSE), currently, 27 companies operate in the free energy market in Portugal. In addition, customers can negotiate prices, an alternative that does not exist in the regulated market.
ERSE has a free simulator for customers to calculate the cost of electricity. The objective is to help consumers choose the option that best suits their pocket and consumption in the place where they live.
It is also necessary to take into account the regions of the country where the companies operate. Larger cities, such as Lisbon and Porto, have more options for companies, since not all suppliers operate in inland regions.
What if a company offers better value than the current one?
Under the law of the country, people can, at any time and free of charge, break the contract and choose another company to supply the energy. There is no need to arrange the change in person, and you can make the change online or over the phone. ERSE states that the procedure is simple and without bureaucracy. The migration process to a new supplier should take, on average, five to seven days.
Discounts for low-income families
The social tariff is a discount mechanism of approximately 33% on the bill intended for low-income families, which is applied regardless of the company that supplies energy. The allowance is granted to families with an annual income of up to 5,808 euros. In the case of residences with people who do not have a salary, 50% of this amount per person is added to the annual income. For example, in a family of three, where one of the members has no income, the maximum annual salary must be €8,712 for the family to be entitled to the discount.
Participants in government social programs, enrolled in unemployment insurance or family allowances, for example, can also receive support. The request must be made directly with the contracted company, upon presentation of documents that prove compliance with the rules.
Agreement to lower energy prices
Since the second half of June, Portugal and Spain have applied a ceiling on the price of gas that produces electricity . The measure, approved by the European Commission, was requested by the Iberian countries to try to stop the increase in tariffs, caused by the impacts of the war in Ukraine.
The Ministry of the Environment estimates that, with the measure, the reduction in the price of energy bills for families is 14%. The application of a ceiling for the service is in effect until May 31, 2023. According to the most recent report released by Eurostat, for the second half of 2021, Portugal has the eighth most expensive energy tariff in the European Union (HUH).
- Log in to post comments