> The Energy Services Regulatory Authority (ERSE) proposed for 2022 an update of electricity tariffs that should allow more than 900,000 families in the regulated market a 3.4% relief as of January, compared to current prices and in until December.
>This decline will come after two quarterly upward updates: around 3% in July and another 3% now in October.
>ERSE’s proposal also envisages a sharp reduction in grid access tariffs, which are applicable to all electricity consumers, including the more than 5 million families in the liberalized market.
>It turns out to be an outcome in line with that estimated by the Government, which in recent weeks had been convinced that customers in the regulated market would have price stability in 2022, with the industry being the only focus of concern. But even there, the tariffs now proposed by ERSE could provide relevant help.
>In the case of industrial customers, the reduction in access tariffs exceeds 90%, a cut that should make it possible to mitigate a large part of the worsening of the energy component of their bills.
>In normal low voltage (the segment that concerns domestic consumers) access tariffs will decrease by 52% in January. It will be from these tariffs, combining them with the cost at which they purchase electricity for delivery to their customers, that energy traders in the free market will redesign their tariffs to take effect from January.
>It is therefore impossible to say, for the time being, whether the 5 million customers with contracts in the free market (more than 96% of which are supplied by five companies, EDP Comercial, Endesa, Iberdrola, Galp and Goldenergy) will be able to count on more invoices. high, lowest or equal in January.
>HOW WAS IT POSSIBLE NOT TO INCREASE THE BILL… WITH RECORD PRICES?
>ERSE’s tariff stability proposal takes place in the midst of one of the most turbulent moments in the history of the Iberian electricity market, with daily prices well above traditional price levels, mainly because of the high cost of natural gas, putting pressure on operating costs of combined cycle plants.
>But with electricity futures for 2022 at 137 euros per megawatt hour (MWh), nearly triple the reference cost considered by ERSE in its 2021 tariff proposal, how is it possible that regulated household tariffs will not increase in January?
>The truth is that a good part of the cost structure of the national electricity system is fixed (regulated revenues from transport and distribution and the guaranteed remuneration of special regime generation, such as wind and cogeneration, for example), so the fluctuation of Wholesale prices influence only a part of the invoice.
>In addition, the surge in the wholesale price of electricity that is taking place has placed the market price of energy at a level above the remuneration guaranteed to the special regime.
>This means that next year the special regime producers (mostly wind) will no longer generate an extra cost (which burdens network access tariffs, especially those paid by families), to generate a gain for the electricity system .
>EXTRAORDINARY FACTORS ALSO HELP
>But it is not only the dampening effect of the production of the special regime that plays in favor of Portuguese consumers in 2022 in this combination of high wholesale prices. The truth is that there are also other factors that allow ERSE not to add to the bills.
>As the Environment Minister, João Pedro Matos Fernandes, had publicly pointed out, next year there will be an annual charge of around 100 million euros with the Energy Acquisition Contract (CAE) of the Pego coal plant, as well as the 100 million euros a year cost of the interruptibility regime.
>In addition, there is a greater transfer to the electricity system of revenues from auctions of CO2 emission licenses, which go from 150 to 270 million euros.
>And there is also a transfer of management balances from various entities in favor of access tariffs, for the benefit of industrial consumers, in the amount of 135 million euros
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> The Energy Services Regulatory Authority (ERSE) proposed for 2022 an update of electricity tariffs that should allow more than 900,000 families in the regulated market a 3.4% relief as of January, compared to current prices and in until December.
>This decline will come after two quarterly upward updates: around 3% in July and another 3% now in October.
>ERSE’s proposal also envisages a sharp reduction in grid access tariffs, which are applicable to all electricity consumers, including the more than 5 million families in the liberalized market.
>It turns out to be an outcome in line with that estimated by the Government, which in recent weeks had been convinced that customers in the regulated market would have price stability in 2022, with the industry being the only focus of concern. But even there, the tariffs now proposed by ERSE could provide relevant help.
>In the case of industrial customers, the reduction in access tariffs exceeds 90%, a cut that should make it possible to mitigate a large part of the worsening of the energy component of their bills.
>In normal low voltage (the segment that concerns domestic consumers) access tariffs will decrease by 52% in January. It will be from these tariffs, combining them with the cost at which they purchase electricity for delivery to their customers, that energy traders in the free market will redesign their tariffs to take effect from January.
>It is therefore impossible to say, for the time being, whether the 5 million customers with contracts in the free market (more than 96% of which are supplied by five companies, EDP Comercial, Endesa, Iberdrola, Galp and Goldenergy) will be able to count on more invoices. high, lowest or equal in January.
>HOW WAS IT POSSIBLE NOT TO INCREASE THE BILL… WITH RECORD PRICES?
>ERSE’s tariff stability proposal takes place in the midst of one of the most turbulent moments in the history of the Iberian electricity market, with daily prices well above traditional price levels, mainly because of the high cost of natural gas, putting pressure on operating costs of combined cycle plants.
>But with electricity futures for 2022 at 137 euros per megawatt hour (MWh), nearly triple the reference cost considered by ERSE in its 2021 tariff proposal, how is it possible that regulated household tariffs will not increase in January?
>The truth is that a good part of the cost structure of the national electricity system is fixed (regulated revenues from transport and distribution and the guaranteed remuneration of special regime generation, such as wind and cogeneration, for example), so the fluctuation of Wholesale prices influence only a part of the invoice.
>In addition, the surge in the wholesale price of electricity that is taking place has placed the market price of energy at a level above the remuneration guaranteed to the special regime.
>This means that next year the special regime producers (mostly wind) will no longer generate an extra cost (which burdens network access tariffs, especially those paid by families), to generate a gain for the electricity system .
>EXTRAORDINARY FACTORS ALSO HELP
>But it is not only the dampening effect of the production of the special regime that plays in favor of Portuguese consumers in 2022 in this combination of high wholesale prices. The truth is that there are also other factors that allow ERSE not to add to the bills.
>As the Environment Minister, João Pedro Matos Fernandes, had publicly pointed out, next year there will be an annual charge of around 100 million euros with the Energy Acquisition Contract (CAE) of the Pego coal plant, as well as the 100 million euros a year cost of the interruptibility regime.
>In addition, there is a greater transfer to the electricity system of revenues from auctions of CO2 emission licenses, which go from 150 to 270 million euros.
>And there is also a transfer of management balances from various entities in favor of access tariffs, for the benefit of industrial consumers, in the amount of 135 million euros