The Portuguese energy services regulator (ERSE) announced Natural gas prices in the regulated market will rise 3.3% from 1 July and then 3.9% in October.
Natural gas prices in the regulated market will rise 3.3% from 1 July and then 3.9% in October compared to the previous month, the Portuguese energy services regulator (ERSE) said in a statement.
Thus, on October 1 there will be an 8.2% increase for the year 2022-2023, compared to the previous year (2021-2022) said ERSE, noting that “taking into account the energy tariff updates throughout 2022, consumers in the regulated market will see an average increase of 3.9% in October 2022 compared to the previous month.
These updates relate to the sales tariffs for the domestic segment (consumption of less than or equal to 10,000 m3/year) which are still on the regulated market.
From July, the bill for a couple without children with an annual consumption of 138 m3 increases by 0.33 euros, while for a couple with two children (annual consumption of 292 m3) the average increase is 0.70 euros. In October, in the first case there is an increase of 0.48 euros and in the second case 0.87 euros on average, compared to September, according to ERSE.
“It should be noted that the regulator’s decision comes in a context of great uncertainty, marked by the shortage of supply compared to demand for raw materials and energy due to the Covid-19 pandemic situation and the war in Ukraine,” it stresses in the statement, explaining that “this situation has aggravated the rise in energy prices in wholesale markets, increasing fears of a scenario of lower economic growth and higher inflation, which significantly affects gas consumption and prices.”
According to ERSE, even so, “the fact that the supply of energy for the regulated market is ensured through long-term contracts, under a ‘take or pay’ regime with Nigeria, mitigates the impact on the sales price to end customers in the regulated market”.
According to the regulator, “the update of the energy tariff by an additional two euros/MWh, effective already from July 1, 2022, stems from monitoring of the average cost of energy in the regulated market, under the terms provided for by regulation,” and “this decision only affects end customers who are still supplied in the regulated market.”
ERSE indicated that “around 227,000 consumers who remain with the last resort suppliers and represent around 2% of national consumption are subject to these variations”.
In turn, “consumers with a social tariff will benefit from a 31.2% discount on the transitory end user tariffs”.
The regulator also explained that “in view of the start of the new gas year 2022-2023, from 1 October 2022 to 30 September 2023, and in accordance with its statutes, ERSE submitted the proposal of natural gas tariffs and prices for the gas year 2022-2023 to the tariff board for an opinion and for consultation with other entities. Following this, and taking into account the opinion issued, ERSE takes its final decision and approves the regulated tariffs and prices, to be in force between 1 October 2022 and 30 September 2023.