Regulator: Gas prices up 8%

 In Energy, News, Regulators and Supervisors

The Portuguese energy regulator ERSE (Energy Services Regulating Entity) presented provisional natural gas charges and tariffs for the regulated market for the period 1 October 2022 and 30 September 2023 with an increase of over 8% in the price of gas.

The increase suggested by the regulator is not good news for the 230,000 consumers on the regulated market which is likely to decide on an 8.2% increase in the retail price of gas for 2022/2023.
Moreover, the ERSE points out that: “Given the value in force from 1 April 2022, due to the quarterly review that has been taking place, (an increase of €5 per MWh), consumers will see an average increase of 6.5% in October 2022”.
In comparison with April (in which prices had already risen by an average of 3%), a couple without children (1st consumption scale, consumption of 1610 kWh/year) will now pay €0.76 and end up with a monthly bill of €13.16 from October.
A couple with two children (2nd scale of consumption, consumption 3407 kWh/year will increase €1.39 with a monthly bill of €24.80.
This is because of a “context of strong uncertainty, marked by a lack of offer given the demand for raw materials and energy because of the Covid-19 pandemic and the war in Ukraine”, argued the regulator in explaining its new provisional tariffs, the final amounts being published on 1 June and coming into effect in October.
Energy costs in the wholesale markets have skyrocketed in recent months. In March 2022 the ERSE reported that gas had risen by 631% in like-for-like terms according to the TTF in the Netherlands which serves as a benchmark for Europe.