The Minister of Environment has stated that that there will be no increase in the price of electricity for domestic consumers in the regulated market in 2022 and there will also be a reduction for businesses.

"We are in a position to say that there will be no increase in the price of electricity for domestic consumers in the regulated market for the year 2022 and that there will be a reduction of at least 30 percent in the tariff for access to networks for industrial customers", announced João Pedro Matos Fernandes.

Matos Fernandes listed a set of 'cushions' that benefit all consumers, such as the elimination of the extra cost of Production under the Special Renewable Regime (PRE) and the elimination the extra cost of the Power Purchase Agreement (CAE) of the Pego coal-fired power plant, generating annual savings of €100 million, among others.

"There is no doubt, although the ERSE [energy regulator] will do the maths in the end, domestic consumers will not have any increase next year," said Matos Fernandes.

While this news has been welcomed at a time when energy prices increase across the globe, the PCP party has said that a price freeze is not enough and that the government should go “further” by bringing in price cuts.

Speaking to Lusa news, deputy Duarte Alves said: “We believe that this announcement only confirms the possibility of the Government intervening on energy prices and that it should do so, not only in relation to electricity, but also in relation to gas and fuels”.

But more than avoiding increases, "which already happens on top of increases that have been registered over the past few years and that weigh on consumers", he pointed out, "what is really needed is to lower the price of energy”, adding that the Government must “use the instruments necessary for this objective (…)”.

On 15 October, the ERSE is set to deliver the first electricity tariff review proposal however, according to Matos Fernandes, the Government decided to outline some of the review ahead of schedule as the issues at stake were of “some concern to ordinary citizens and also businessmen”.

Last week, the Energy Services Regulatory Authority (ERSE) announced that the price of electricity will increase again, as of 1 October, by €1.05 per month for most domestic customers in the regulated market.