The President of the Republic promulgated this Friday, December 26th, the end of the tax on companies producing electricity and said that he hopes it “even guarantees more favorable treatment for taxpayers”.
“Hoping that this diploma will guarantee more favorable treatment for taxpayers, the President of the Republic promulgated the diploma that extinguishes the competitive balance mechanism, created by Decree-Law no. 74/2013, of June 4, and revokes the respective regulation”, reads the brief message published on the official website of the Presidency of the Republic on the internet.
Last week, the Government approved the elimination of the tax on electricity producing companies related to the competitive balance mechanism, called ‘clawback’, and said that the Energy Services Regulatory Entity (ERSE) had already recommended its extinction.
According to the Minister of Environment and Energy, Maria da Graça Carvalho, the annual fee will no longer be paid this year and considered that its end could help to attract investment and reduce the price of electricity for the final consumer, for the sake of simplifying fees and taxes and reducing contextual costs.
Today, the President of the Republic, Marcelo Rebelo de Sousa, approved the elimination of this fee, adding that he hopes that its end “even guarantees more favorable treatment for taxpayers”.
In mid-December, ERSE announced that the electricity bill for customers in the regulated market will increase, on average, 1% from January 1st.
Thus, from January onwards, considering a power of 3.45 kilovoltamperes (kVA) and a consumption of 1,900 kilowatt-hours (kWh) per year for a couple without children, the total payable will be 36.82 euros, including fees and taxes (except DGEG fee – General Directorate of Energy and Geology).
For a couple with two children, with a power of 6.9 kVA and a consumption of 5,000 kWh/year, the bill will be 95.03 euros (with fees and taxes).
At the end of September 2025, 817,000 customers were in the regulated market.
In the liberalized electricity market, prices vary depending on the company and the contract made with the customer.