According to an informative summary by the Energy Services Regulatory Authority (ERSE) based on data published today by Eurostat on energy prices since June, “the rates and taxes component, which integrates the CIEG [Costs of General Economic Interest], presents for Portugal a weight of 46 percent of the total price paid by consumers”, being only exceeded in Denmark weight of 66 percent, Germany with 53 percent and Finland with 47 percent. “The rates and taxes component are the fourth highest in Europe, mainly due to the so-called CIEG, which are the result of energy policy options and represent 27 percent of the final price,” ERSE says.
According to the regulator, for the other EU countries it is not possible to identify these costs in a disaggregated form of taxes and fees, since Eurostat does not publish this information. Excluding tax rates, and comparing only the energy components and networks for the consumer (in the DC consumption band, between 2,500 and 5,000 kilowatt hours (kWh) per year, which is the most representative in Portugal), ERSE states that “Portugal is among the countries where the energy and grid component is lower, with prices lower than those of Spain and the EA [Euro Area] and the EU”.
“In the domestic segment, the energy and grid component remain among the lowest in the European Union, accounting for 54 percent of the final price,” he said. In the non-domestic segment, the energy and grid component represent 70 percent of the final price (without VAT) and the rates and taxes component is the fifth highest in the European Union, mainly due to CIEG, which represent 29 percent of the final price (without VAT).
The regulator’s analysis also states that, in the first half of this year, Portugal recorded a fall in electricity prices in the domestic segment, compared to the same half of 2019, and an increase in electricity prices in the non-domestic segment. “For domestic consumers, there are higher average prices in Spain, the Euro area and the average of the Countries of the European Union (about 12 percent, 7 percent and 0.5 percent above those in Portugal). For non-domestic consumers only average prices in Spain are slightly lower than those observed in Portugal”, he says.
The average price in the DC consumption band (the most representative in Portugal for domestic consumers) decreased by 1.4 percent compared to the same half year of 2019, while in the IB band (the most representative for non-domestic consumers) there was an increase of 2 percent. “Compared to Spain, the Euro area and the European Union average, Portugal has a lower average price for both segments,” ERSE notes, adding that “this price differential is more pronounced compared to euro area prices, with prices 6 percent higher than those of Portugal for domestic consumers and 13.6 percent higher than those of Portugal for non-domestic consumers.”