U01E - Electricity
Category : Utilities
U01E - Electricity
Electricity supply in Portugal has historically been provided only by Electricidade de Portugal (EDP). Power provided by EDP is 220V AC, 50Hz single-phase or 380V AC, 50Hz three-phase. This is the same as in most of mainland Europe and Africa. It is different from that supplied in USA, UK, Ireland and most of anglophile Africa.
Liberalised market
Since 2000 the electricity and gas markets in Portugal have been liberalised and you can choose any market supplier.
All consumers pay the network access tariff, regardless of whether they are in the regulated market or in the liberalised market. Access tariffs reflect the cost of infrastructures and all services used by all consumers in a collective manner. ERSE, the electricity authority, defines these tariffs.
Consumers, who are still in the regulated market pay the energy tariff and the supply tariff, set by ERSE. In the liberalised market, each supplier defines freely the corresponding value, being in competition with other suppliers.
The government is responsible to define VAT and other taxes, which are the same across the regulated and the liberalised market.
Electricity companies normally provide connections to premises within 1 km of one of their transformers. Owners of houses more than 1 km from a transformer may request quotations for the installation of an additional transformer and a special line.
The charges for low-voltage domestic supplies are made up of three components: the fixed charge, the charge for energy consumed, and VAT (IVA).
The fixed charge depends on the type of supply contracted. For low-income consumers there is a social rate. Most consumers contract the standard rate. Those that have over 60kWh (see below “Saving energy costs”) night consumption may opt for the night rate. More information about this option further on.
Only low voltage contracts are covered, with power up to 6.9 kVA, and only the first 100 kWh spent by these consumers each month are taxed at 6%. This limit increases to 150 kWh in the case of large families - 5 or more members -, as long as the contracted power does not exceed 6.9 kVA. All consumption that exceeds these values maintains the normal VAT rate, 23%. In the Autonomous Regions of the Azores and Madeira the reduced VAT rate is 4% and 5%, respectively and the normal VAT rate is 16% and 22%, respectively.
The application of the 6% VAT rate to the corresponding consumption is automatic, it is enough that the contract meets the defined conditions: contracted power up to 6.9 kVA, contracted power up to 6.9 kVA, regardless of the tariff - simple, bi-hourly or tri-hourly. In the case of large families, they will have already requested this status from the supplier as well, so the 6% tax on the first 150 kWh normally appears on the invoice.
In the case of a family of 3 people, for example, with a power of 3.45 kVA and monthly consumption of 134 kWh, the first 100 kWh will be taxed at 6% instead of 13%, and the remaining 34 kWh will be charged 23%, as before. The savings will be around €13.00 per year or €1.00 per month.
You will also find in your bill an amount for “Taxa audio-visual” this is the substitute for the TV and radio licence that existed in Portugal many years ago and still exists in many countries, but because this is included in your electric bill it is for everyone to pay regardless of the fact if you have a TV or a radio. The only exemptions to this tax are the electricity bills for agricultural and industrial purposes.
Delivery Point Code (CPE)
CPE is a unique code that identifies your home's electrical installation. It consists of 20 digits and starts with the letters “PT”. The CPE is assigned by the distribution network operator and appears in your contract and electricity bill. Regardless of your supplier, the CPE is always the same.
How to request a new domestic supply
You can request a new domestic supply by phone, through the Internet or at the local office of your electricity provider, if there is one near you. These offices normally have a wide range of information brochures, so they are worth a visit.
Before requesting connection, you should make sure that the electrical installation is ready and certified to receive electricity.
If you do not have a connection to the network, the distribution network operator needs to be contacted and asked for a quote for the connection to the network. Your home's electrical installation must be prepared (certified) to receive electricity. Normally the builder or the builder’s electrician provide all this and ensure the connection.
When moving to a property that has already had a power connection, you do not need to remain with the same company as in the previous contract, you can choose any supplier on the Portuguese market.
You will need the following documentation:
- Proof of your identity: Tax Registration Card (NIF), Identity card (Cartão do Cidadão) or Residência, or Passport. Note: you will always need your passport if you hold a Residência Certificate (without picture).
- Proof of legal occupation of the premises, such as land-tax registration (Caderneta Predial), rental agreement, or purchase contract (Escritura de Compra).
- For new premises you will also need to provide the plans provided by a certified electrician as well as his certificate of installation, the occupation approval (Licença de Habitação), a map showing the location of the premises and a summary of the circuits (Ficha Electrotécnica) – ask your builder.
Before choosing a power supplier, you can simulate the level of power you need based on the number of appliances that you use at the same time.
You will also need to decide:
- Which tariff you require (social, standard, or night-rate) and the periodicity of your bills.
- What capacity you will need. This depends on the equipment you will use (see simulation on the link above). For a modern household you will normally need at least 6.9 kVA, but with the full-range of equipment even 10.35 kVA may not be sufficient. The highest normal domestic capacity is 19.8 kVA.
- Whether the installation should be single-phase or three-phase.
- How you are going to pay the bills. You have the option to pay by Direct Debit or receive the bill and pay later.
You need to request the connection and installation of the meter. If power cables are close to the house this normally takes only a few days. Once this is complete the company will draw up a contract and you will be asked to sign the original. A small charge will be added to the first invoice to cover handling and legal costs incurred.
How to change the name on the contract
The procedure is similar but requires fewer documents than the connection of new premises.
Switch supplier
Before you switch supplier, check whether you are within the minimum term of the current contract. A contract can only have a minimum term if an advantage is provided when you signed up. The minimum term is not automatically renewed but if a new offer, including a new advantage, is made at the end of the contract, a new minimum term may be agreed. If you are not within the minimum term, you can switch supplier free of charge whenever you want and how often you want. If you are within the minimum term you may have to pay a penalty.
In order to switch supplier, you do not need to cancel the contract with the current supplier, the new supplier will deal with the cancellation. The switching process is free of cost and must be completed within three weeks of signing the new contract. During the switching process the supply cannot be cut and, within a maximum of six weeks after the change, the previous supplier has to send the last bill.
Some suppliers have offers for the supply of electricity and natural gas in the same contract. Compare the different offers to find out if it is more advantageous for you to contract the two services together or separately.
Methods of payment
You may pay your electricity bill by Direct Debit, bank transfer, Multibanco, cash or cheque.
If you choose to pay by Direct Debit, you should receive the invoice before your account is debited, giving time for you to check the amounts and to contact your provider if a correction is needed. If you wish to pay by Direct Debit contact your local electricity provider’s office or telephone their free-phone number.
To pay by Multibanco, choose the option "Pagamento de Serviços", and enter in the numbers identifying the organisation (Entidade), the invoice reference (Referência), and the amount in Euros (Montante). These numbers are bottom of the invoice.
Some Suppliers Offices and Post Offices will accept payments in cash or cheque. When paying by cheque you should write the location code (número de identificação do local) on the back. This code is given at the top of your invoice.
Estimated bills
It is possible that your electricity provider sends you bills based on estimated consumption. Often estimates are much lower than the real consumption and this can result in a sudden very high bill. To avoid this, you can ask the supplier if you can read the meter yourself and then communicate the real readings to the supplier. Check with your supplier for instructions.
Electricity consumers (domestic customers) who receive an invoice with an estimated value equal to or greater than 25% of their average consumption over the last six months must also receive an indication on the invoice of an automatic plan for payment in installments, which may go up to 12 monthly installments. If the consumer wants, he can immediately pay the entire amount of the invoice that includes the adjustment, just having to communicate it to his supplier.
Saving on energy costs
You can make significant savings by opting for a Bi-Horário (two periods in a day Vazio/Fora Vazio) or Tri-horário (3 periods in a day: Ponta/Cheias/Vazio) meter. The unit cost of energy at economy (Vazio) is a reduced rate in comparison to the standard rate. However, the rental of a night meter is slightly more expensive. You can make an option between a daily cycle or a weekly cycle. The cycles are different on Portugal Mainland, Madeira or Azores.
New providers
You can change your energy provider at any time.
Economically vulnerable clients (eligible to benefit from the social tariff) retain the right to continue to be provided by E-REDES (previously called EDP Universal).
You can use this link for a list of providers in the open market. Please note the majority of these providers do not have offices in the Algarve. This does not mean they are not reliable, but if you prefer to go to an office and speak to someone in person, you should know that with some of the providers this is not possible. To help you choose your electricity provider, ERSE, the energy authority in Portugal has launched a simulator on their website. There is an option to choose English on top of the screen. With this simulator, you can enter the details from your electricity invoice and the prices from all the providers for that exact consumption will be displayed. You will be able to see how much you would pay for a similar invoice from each of the providers.
Complaining about electricity services
When you have a problem, you should contact your power supplier to get an answer.
If the supplier does not reply or you are not satisfied with the reply, you can:
- submit a complaint or request for information to ERSE via the e-complaints book
- submit a complaint in the physical complaints book at your power supplier’s service centres
- send your complaint by letter to the Energy Services Regulatory Authority (ERSE) at Rua Dom Cristóvão da Gama, 1, 3.º - 1400-113 Lisboa.
Following the complaint, ERSE will recommend a solution to resolve the conflict. If the company accepts this solution, the issue is resolved.
If the company does not accept ERSE’s recommendation, the conflict will remain open and you may apply to:
Arbitration Centres are recommended as they provide a quicker, cheaper solution and their decisions are equivalent to those made by a court of law.
See also
How to read a contador
