Electricity prices to fall for the first time in 18 years

Paul Rees 13 October 2017

edp The Energy Services Regulatory Authority has proposed a reduction in electricity prices starting on January 1st, 2018.

The 0.2% reduction will be the first time prices have gone down in 18 years but the impact will be almost unnoticeable for domestic consumers - for example, an invoice of €45.70 will drop by just nine cents.

This reduction will have an effect which is “not very noticeable for consumers,” admits the ERSE.

The formal regulatory gobbledygook reads, "The variation between 2017 and 2018 of the tariffs for the sale to final customers in Low Voltage Normal (BTN) of the final providers proposed to the Tariff Board is a reduction of 0.2%."

We must travel back in time to the year 2000 to find a price drop for electricity in Portugal so this news is welcome but not earth-shattering.

In a statement topday, the Secretary of State for Energy, Jorge Seguro Sanches, pointed out that "this is the second consecutive time that national consumers will benefit from this legislative package in order to control electricity costs."

Sanches highlighted "the set of legislative measures approved by the Government to enhance the transparency, rigour and competitiveness of electricity prices," referring to an end to the EDP scam of charging its customers for the annual ‘Extraordinary Contribution from the Energy Sector,’ which has cost consumers an extra €500 million in the past ten years.

"This rate change for 2018 results from the combination of several factors with impacts in opposite directions," notes the ERSE, pointing to "debt service, fuel cost evolution, transfers from the Systemic Sustainability Fund of the Energy Sector, the review the level of efficiency required by regulation and cost-effective legislative measures."

The discount for poorer customers on the social tariff will stay at 33.8% and "will have a reduction in the monthly electricity bill in the amount of 5 cents on an average monthly invoice of €20.40," the ERSE concludes. Happy days indeed...

Comments

+2 #7 chez 2017-10-17 11:56

Free electricity for over the over 70's?

+4 #6 Darren 2017-10-15 07:58

Ricardo 2 misses the point entirely that Portugal is still one of the poorest, least advantaged countries in the EU. Him / her (?) leaving out that it is still on Grade 1 maximum Structural Funds although less now other member states have joined. So, with the EU funding any substantial Grid improvements, the actual cost to the Portuguese is minimal compared to stronger, healthier, more competitive economies. Which would all have stiff competition to EDP and their Directors bonuses. Bring on the internal market competition in Portugal - as the EU was always intended to be ! Only 30 years late!

+3 #5 Richard 2 2017-10-14 19:30

I think you all are too hard on edp. My experience is that they do a good job in providing reliable service whilst endeavouring to maximize the use of renewable resources. Part of higher unit costs can be attributed to economy of scale; or lack thereof. Certain infrastructure costs will be the same providing for 10 million users or 60 million.

+5 #4 TT 2017-10-14 15:37

Call me sceptical, but I very much doubt we will see any real reduction on our bills, EDP will not see their shareholders' nor directors' bonuses hit. They will simply add the minuscule reduction amount on to something else, probably with interest whilst thumbing their noses at us and ERSE.
EDP never do what they are told to do by ERSE, another toothless watchdog.

+5 #3 Margaridaana 2017-10-14 09:48

Not exactly something to write home about is it?

+3 #2 TerryP 2017-10-14 09:07

I am thankful for even the tiniest mercy

+4 #1 mj1 2017-10-14 07:51

And how about a cut in the iva rate!!

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