The electricity bill is set to increase next year for those in the regulated electricity market. When compared to the liberalized market, which option is more cost-effective?
“The choice will always depend on the consumption profile, the contracted power needed, consumption periods, and the predictability desired. However, there are various differences between the two markets,” explains DECO PROTeste.
Regulated Market
In the regulated market, “electricity prices are set annually by the Energy Services Regulatory Authority“, with a “possibility of quarterly revisions, although it is uncommon”.
“It can be a good option for consumers who value price stability or do not follow price changes in the bill. When adjusted, the tariff is the same for all clients, whether current or new,” explains DECO PROTeste.
The Energy Services Regulatory Authority (ERSE) has proposed a 1% increase in electricity prices for families in the regulated market starting January 1, 2026. Understand what this entails.
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Liberalized Market
Conversely, in the liberalized market, “suppliers set prices and contractual terms freely”, meaning that prices can vary more frequently, featuring competitive offers.
Moreover: “There is the possibility of tariffs with discounts or other associated benefits.”
“Over time, pricing conditions can change. Therefore, it’s advisable to consult the bill to verify if the initial economic benefits persist. All bills indicate how much more or less you would pay if you switched to a regulated market tariff, maintaining the same consumption profile. If you are overpaying, your current tariff might no longer be the best option,” the consumer protection organization further explains.
What is the greatest advantage? According to DECO PROTeste, “it is the ability to switch suppliers at any moment, free of charge“, as “in most cases, no binding contracts are required“.
ERSE Proposes 1% Increase in Regulated Electricity Tariff Starting January
The Energy Services Regulatory Authority (ERSE) has proposed a 1% increase in electricity prices for families in the regulated market from January 1, 2026.
According to the energy sector regulator, the proposed increase translates into an additional 0.20 to 0.37 euros on the monthly bill, including taxes and fees.
“This increase is less than the anticipated variation for the Harmonized Index of Consumer Prices (HICP), representing a real-term reduction,” highlights ERSE.
As of the end of August, the regulated market included over 820,000 domestic customers, as per regulatory data.
In mainland Portugal, tariffs for end customers in the regulated market recorded an average annual variation of 1.7% between 2021 and 2026, according to the regulator.
In the free market, which enrolled 5.7 million clients by the end of August, end customer prices vary between suppliers and depend on the contractual offer selected by the client.
