“This is the biggest intervention in the energy market in Portugal”. What’s coming?

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O The Minister of Environment and Climate Action, Duarte Cordeiro, explained this Wednesday that the government will inject three billion euros into the energy sector and added that this is the most major intervention ever carried out on national soil. With this package, the government aims to savings of 30% to 31% on electricity and 23% to 42% on gas.

“This is the largest intervention in the energy market in Portugal. We are talking about two billion euros of intervention in the electricity market and a billion euros in the natural gas market aimed at companies, large consumers”, declared Duarte Cordeiro, during a press conference, in the main hall of the Ministry of Environment and Climate Action, explaining that, given the estimated prices for next year, it allows a reduction of 30% to 31% in the electricity bill of companies and from 23% to 42% in the case of natural gas.

This support package “it is justified by the nature of the crisis we are experiencing and by the scale of the increases we are undergoing live”he added.

Duarte Cordeiro began by explaining that these measures are aimed at companies, which means that in total the government will inject Another 3,000 million euros in electricity and gas systems to limit energy prices.

“This intervention is essential for an obvious reason: it is from energy that the impacts of inflation began, which are felt throughout Europe and in Portugal, it is by intervening in the energy market that we can also contain the spread of energy price increases in society“, explained the governor.

Duarte Cordeiro added that “By interfering with gas and electricity, we naturally interfere with bread, milk, in all areas that concern the production of services and products in our society”.

And more: “We have to prepare for higher price scenarios, if not so much the better”.

This injection of 3,000 million euros into electricity and gas systems to limit energy prices was already provided for in the final version of the social dialogue agreement, signed by the social partners.

“In parallel with the regulatory measures, an additional 3 billion euros will be injected into the electricity and gas systems, thus limiting the rise in energy prices”, can we read in the agreement signed between the government, the four employers’ confederations (CIP, CCP, CTP and CAP) and the CGU.

According to the executive, “these measures result in significant reductions in the cost of electricity consumed by economic sectors, including large consumers“.

The savings will be communicated by the Energy Services Regulatory Authority (ERSE) on October 15, with reductions of approximately 40 euros per megawatt hour (MWh) for gas consumed by companies not covered by the regulated tariff (up to 80% of its consumption), “What allows savings of around 20% to 30% compared to the price expected in 2023“, reads the agreement.