The Energy Services Regulatory Authority (ERSE) is proposing a 2.8% increase in the regulated electricity tariff for next year. About 925 thousand customers are at stake, as the vast majority of families and businesses in Portugal have already joined the free market. The 2.8% increase translates, ERSE says, into a 40 cent increase in the monthly bill for a couple without children and 1.04 euros in a family of four. It is recalled that the final tariffs in effect in 2023 will only be known within two months, and in the meantime the tariff board of the regulator will give its opinion on this proposal.
In a statement, ERSE explains that the temporary tariffs will apply to end customers who remain on the regulated market – about 925,000 customers corresponding to only 6.5% of total consumption – “or who, on the free market, have opted for an equivalent rate”. The increase of 2.8% refers to normal low voltage and, emphasizes the regulator, corresponds to the variation from the average price for 2022, “including the updates of energy rates in April and October, as well as the exceptional rate in July 2022. “. This means that “monthly, customers on the regulated market will see an average increase of 1.1% in January 2023 compared to the prices prevailing in December 2022”.
The examples used – a couple without children, with a contracted power of 3.45 kVA and an annual consumption of 1900 kWh, and a couple with two children, 6.9 kVA of electricity and an annual consumption of 5000 kWh – are “the typologies that are representative are for residential customers”. With the new increase, the childless couple pays an average of 38.63 euros per month for electricity and the family of four receives a monthly bill of 96.01 euros.
The regulator reminds that consumers with a social rate receive a 33.8% discount on the established rates.
As for grid access tariffs, a component of the energy bill paid by all consumers, whether they are in the regulated or free market, in 2023 they will experience “significant reductions, with their value turning negative on all voltage levels”. ERSE stresses that the reduction in access charges “is the result of a sharp fall” in the overall tariff for using the system, “justified by the fall” in the cost of general economic interest (CIEG), which translates in a superior advantage, in 2023, for the National Electric System compared to 2022″.
Exchanged for children, ERSE explains that, compared to the average prices observed in the regulated market in 2022, the reduction in the tariff for network access contributes to a decrease of about 35% in the final settlement of industrial companies. consumers and of about 80% in the final bill of household consumers, “relieving the pressure of energy price increases in the wholesale market on the final prices paid by customers, both on the regulated market and on the liberalized market” .
Industrial consumers will benefit from the injection of about two billion euros in network access tariffs to be implemented in 2023, the regulator says, specifying that 494 million will come from revenues derived from the auctions of greenhouse gas emission allowances. and energy products (ISP) and with the proceeds of the extraordinary contribution to the energy sector (CESE). Already 1.5 billion euros will be income as a result of the cost difference with power plants with Power Acquisition Contracts (CAE).
Domestic consumers will benefit from €3.3 billion in revenue from the cost differential of Special Regime Production (PRE), which will be reflected in network access charges next year. Since the difference in production costs under the special scheme depends on the difference between the guaranteed prices for production under the special scheme and the energy prices observed on the wholesale market, this reduction is fundamentally justified by the sharp rise in energy prices on the market The performance of the PPA revenue is linked to the increase in energy prices in the market,” he explains.
ERSE also recalls that the prices that suppliers will charge in the free market in 2023 depend on the grid access rates, but also on the cost of energy purchased by each company. Therefore, it advises consumers to remain “vigilant” and use the available simulators to check the various proposals on the market. “If they find a better offer, they have to change suppliers,” emphasizes the regulator.
In addition, the economic sustainability of the National Electricity System is guaranteed, as a result of which the value of the tariff debt has decreased significantly by 830 million euros to a value of 878.9 million euros at the end of 2023, the regulator added.
Source: DN
