Portugal increases support to help with rising energy bills

The Portuguese government will next year increase the amount of financial aid available to help families and companies cope with rising gas and electricity prices, it said on Wednesday. Economy Minister Antonio Costa Silva said the government would add 500 million euros ($533 million) to its existing support package, bringing the total amount available to 3.5 billion euros.

The Portuguese government will next year increase the amount of financial aid available to help families and companies cope with rising gas and electricity prices, it said on Wednesday.

Economy Minister Antonio Costa Silva said the government would add 500 million euros ($533 million) to its existing support package, bringing the total amount available to 3.5 billion euros. Costa Silva said 1 billion euros would go to companies that consume more than 10,000 cubic meters of natural gas per year, which would help them save around 42 euros per megawatt-hour (MWh). The remaining 2.5 billion euros will help companies and families pay their electricity bills.

The platform managing the Iberian market, Mibgas, on Wednesday set a price of 119.99 euros per MWh for the day-ahead contract, about twice the price at the beginning of the year. Costa Silva told a news conference with the additional 500 million euros, the final bill of industrial electricity consumers would be reduced by around 35%, and the bills of domestic consumers by 80% in 2023.

"This is a very significant (support) package," he said. "Our main goal is to protect families and businesses from the effects of this brutal energy crisis." Environment Minister Duarte Cordeiro said of the 15 dams banned from producing electricity in September due to a severe drought, 14 had returned to operation thanks to recent heavy rains, helping to reduce the use of gas power stations.

European countries are struggling to manage surging gas and power prices after Russia's invasion of Ukraine. Prime Minister Antonio Costa said on Tuesday that Portugal and Spain should start negotiations with the EU to allow them to extend beyond May a cap on the benchmark price of gas used by power plants to generate electricity. ($1 = 0.9379 euros)

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