# Electricity in Portugal (Extinction of Tariffs)



## Ronnie_Yook

Hello, does any person in the Forum know what the recent "Extinction of Tariffs" notification means?

Our letter from EDP seems to state that we can change provider of electricity or a new tariff will be allocated to us.

What other provider option is there in Portugal? 

We received the letter from EDP in May 2012, but I note that this came into effect in January 2012.

Thanks in advance
Ronnie


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## canoeman

Basically Electricity supply has been deregulated as per UK, so there should be alternative suppliers popping up, although no sign of any yet.
As I understand it prices are currently set for 5 years with staged increases by the Energy Governing body, this is also due to phase out, although the bit I read says if you stay with EDP then you kept present tariff, ours are set till Dec 2012.
Phasing for customers using less than 10.35 kVA. is free market tariffs from January 2013 completed by 2015 so a bit of time for these alternative suppliers to enter market.


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## Ronnie_Yook

Hi Canoeman, many thanks for your reply.


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## anapedrosa

The Algarve news had a story on this - 

Energias De Portugal (EDP) to be wound up 

and later another story on GALP 
Galp to undercut EDP's electricity prices

I hope that posting these links is ok:confused2:


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## Ronnie_Yook

Thank you anapedrosa for this info, very much appreciated.


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## canoeman

Don't get too excited about Galp there targeting dual fuel customers i.e electricity and *natural *gas, something 98% of Portugal doesn't have
So far they seem to be the only alternative supplier who's gone public with any information.


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## anapedrosa

canoeman said:


> Don't get too excited about Galp there targeting dual fuel customers i.e electricity and *natural *gas, something 98% of Portugal doesn't have
> So far they seem to be the only alternative supplier who's gone public with any information.


My sense is that at this point it's a good idea to avoid locking into long term contracts with any provider. To keep the flexibility to shop around if other providers enter the market.

The article notes that there is a deadline for changing suppliers from EDP, I am wondering what the implications are if no action is taken. Does this mean an open contract. This will be a time to read the fine print on contracts. My son learned that with deregulation of gas, signing on to a five year contract seemed a good deal when prices were high (in Canada), 3 years later the prices had tumbled and he was locked in. Locking customers is a solid income stream for utilities. It took years for our regulatory system to catch up with regulating providers in an open market. Buyer beware - even with the old providers.


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## canoeman

Currently EDP are responsible for the National Grid and business and domestic electricity supply.

So with deregulation they will now be an EDP? company for National Grid and then other companies for supply of business and domestic supply, problem for us consumers at the moment there aren't any alternatives to EDP *yet* except I think Lisboa, EDP (Commercial)/Continente launched a discount scheme this year so think this is the start of hopefully some better deals, problem as I see with Portugal is that de-regulation doesn't seem to mean a great deal take PT as an example, if you look at the alternatives they all offer similar services at same prices, which is not exactly competition


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## anapedrosa

Galp appears to be using electricity as a way to sell more gas (perhaps this will be a way for them to increase their market coverage). Continent as a way to build customer loyalty. Not exactly competition, I agree.


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## canoeman

Yes but Galp is only interested in *Natural *gas customers and although on a new build is compulsory to have piping and meter boxes installed the majority of Portugal doesn't have Natural gas or is ever likely to get it.


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## anapedrosa

canoeman said:


> Yes but Galp is only interested in *Natural *gas customers and although on a new build is compulsory to have piping and meter boxes installed the majority of Portugal doesn't have Natural gas or is ever likely to get it.


I was under the impression that Portugal doesn't have its own source of natural gas transports primarily with trucks rather than piping. That would make it expensive.


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## canoeman

Your right it doesn't have any natural resources, major suppliers are Algeria, Nigeria and Spain. 
Currently only 1,200 odd kms of piping, so we have a nice external box for supply but we'll never ever see it connected, the national grid for 2010 don't think it's changed much

http://www.ren.pt/vEN/NaturalGas/Documents/2010 Natural Gas Transportation Grid.jpg


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## siobhanwf

anapedrosa said:


> The Algarve news had a story on this -
> 
> Energias De Portugal (EDP) to be wound up
> 
> and later another story on GALP
> Galp to undercut EDP's electricity prices
> 
> I hope that posting these links is ok:confused2:


You aren`t selling anything so NO problem


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## Ingles

canoeman said:


> Currently EDP are responsible for the National Grid and business and domestic electricity supply.
> 
> So with deregulation they will now be an EDP? company for National Grid and then other companies for supply of business and domestic supply, problem for us consumers at the moment there aren't any alternatives to EDP *yet* except I think Lisboa, EDP (Commercial)/Continente launched a discount scheme this year so think this is the start of hopefully some better deals, problem as I see with Portugal is that de-regulation doesn't seem to mean a great deal take PT as an example, if you look at the alternatives they all offer similar services at same prices, which is not exactly competition


EDP are responsiable for supply of Electricity 
REN are responsiable for National Grid
In our Electricity bill is a charge from REN passed on for the use of the National Grid

This link is in English

electricidade_value-chain


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## canoeman

Thanks i'd forgotten REN are responsible for Electricity as well as gas grids


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