Portugal’s energy regulator has proposed significant changes to electricity tariff timings, aiming to modernize the national grid by aligning prices with evolving consumption patterns and reducing long-term costs for consumers.
The Energy Services Regulatory Authority (ERSE) has opened a public consultation on its plan to adjust hourly periods for electricity tariffs in mainland Portugal. The regulator seeks to adapt the schedules to contemporary consumption and electricity production patterns.
ERSE stated the proposed alterations would ensure more efficient use of power networks. They would also create a better match between tariff periods and the actual usage profile of the electrical system.
Crucially, the proposal does not eliminate multi-hourly tariffs, such as bi-hourly, tri-hourly, or tetra-hourly options. Instead, it aims to update the specific hours assigned to these periods.
For customers with tri-hourly and tetra-hourly contracts, the main change involves shifting peak consumption hours. These hours would primarily occur at the end of the day, eliminating current peak periods in the morning and early afternoon.
Bi-hourly customers would see their “off-peak” period begin later. This would shift the daily cycle start to 9:00 AM and end at 11:00 PM. On weekdays within the weekly cycle, the period would start at 7:30 AM and end at 12:30 AM.
The regulator emphasized that the proposal maintains the existing daily durations for peak, full, normal off-peak, and super off-peak periods. Only the start and end times of each period are being adjusted to better reflect network usage.
These proposed changes are largely enabled by widespread smart meter adoption across Portugal. ERSE noted that 99% of normal low-voltage customers already possess intelligent meters. This ensures the potential for broad application of the new hourly periods.
The proposals also include several simplifications. These include establishing a uniform daily cycle throughout the year, removing differentiation between winter and summer legal times. Additionally, a single weekly cycle will replace the previous optional cycle, which was only applicable to very high, high, and medium voltage customers.
ERSE anticipates that consumers will be the primary beneficiaries of these adjustments. The regulator estimates that, in the long term, the changes will reduce the need for investments in electricity transmission and distribution networks. This, in turn, is expected to lower network costs for all consumers.
The changes are not expected to take effect before January 1, 2027. ERSE also clarified that the proposals are subject to revision based on feedback received during the ongoing public consultation period.