LISBON – Portugal will inject 3 billion euros ($2.91 billion) into its electricity and natural gas systems to reduce energy prices paid by businesses next year through a combination of public spending and regulatory measures, the government announced on Wednesday.
Environment and Energy Minister Duarte Cordeiro told reporters that “this is the biggest intervention ever in the energy markets” in the Iberian country and that it should save around 30% of estimated electricity tariffs for 2023 and between 23% and 42% on gas.
The plan is due to come into force on January 1, but it will involve a direct transfer of €1 billion from this year’s budget and an additional €500 million in other policy measures, while regulatory measures will amount to 1.5 billion euros.
Cordeiro said the measure “has been calibrated to counter a scenario of a significant increase” in electricity and natural gas market tariffs in 2023.
To protect electricity consumers, Spain and Portugal already capped the price of gas used in electricity generation in June, which helped reduce local electricity prices, as did a decision to Lisbon allowing households and small businesses to switch to lower regulated tariffs from the start. of october..
But many companies, such as those in the tile industry and other energy-intensive sectors, are still fully exposed to soaring natural gas prices after Russia invaded Ukraine.
($1 = 1.0303 euros)
