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Portugal’s gas and electricity the most expensive in Europe

gasIn terms of purchasing power, Portugal has the most expensive electricity and gas in Europe, according to Eurostat.

Looking at the actual rates paid including tax, Portugal’s households paid prices for electricity that placed the country in seventh place, way above the EU and the Eurozone averages, in a table headed by Denmark and Germany whose consumers are better able to afford the prices charged.

For domestic gas, Portugal paid the second highest actual price in Europe, just behind Sweden and followed by Spain and Italy.

As Portugal’s wage levels are near the bottom of the European league, in purchasing power parity, Eurostat reports that Portugal’s consumers paid the highest gas prices in Europe, with Spain, Greece and Sweden close behind.

The electricity price in Portugal, adjusted for purchasing power, also is the highest in the EU, followed by Germany, Spain and then Romania.

According to Eurostat, the average electricity prices rose 2.4% in the EU last year, while natural gas fell 1.7%.

In Portugal’s case, the energy regulator reported that for 2015 the electricity price went up an average of 3.3%, followed by a rise of 2.5% in 2016.

For natural gas, the regulator in Portugal approved a 2015 decrease of 7.3% and in 2016 the regulator has proposed a further drop of 18.5%. Consumers are still waiting.

The head of Portuguese electricity company EDP, António Mexia, points out that many consumers are on the low ‘social tariff’ and that the tax burden on electricity is high.

In fact, EDP recently has been fined €7.5 million for its lack of effort in transferring its poorest customers onto the ‘social tariff’, while continuing to moan that the government should refund EDP the difference between the social tariff and the full tariff.

Mexia, who earned €2.1 million in 2015, had another go at justifying EDP’s stiff electricity charges; "The problem is not in the price of electricity, the problem is in purchasing power. ... The price for households in Portugal is in line with the European price, especially if we consider that there is a higher tax in Portugal the European average."

Eurostat did confirm that the weight of taxes and fees added to the price of domestic electricity in Portugal is the third highest in the EU at 50%, after Denmark at 69% and Germany at 52% - all of which are above the European average of 33%.

Comments  

+1 #7 YawnPatrol 2018-02-26 15:07
Quoting R eddihough:
Are the people here making comments about portugues corruption incomers from u k and other countries if so sod off back where u came from and stay at home u w....s
Yet another 'go back to where you came from' commentator. How limited - doesn't add much to the party, does it...?
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-1 #6 R eddihough 2018-02-26 14:24
Are the people here making comments about portugues corruption incomers from u k and other countries if so sod off back where u came from and stay at home u w....s
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+3 #5 PG 2017-07-02 13:48
The main problem is lack of competition and the government refusing to do something about the cost of essential services in the country. Portugal has some of the lowest salaries in developed Europe , yet the prices and taxes are high , encouraging people to emmigrate
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+3 #4 J 2017-03-07 18:38
Portugal has renewable energy that could probably drop the prices close to zero for the locals and still make a profit selling to the rest of Europe. But this is Portugal we´re talking about. 500 years living off colonies, 40 off emigrants, forever off lower classes and 30 of the European cash cow. This is the Mexico of Europe, you come here if you have lots of money to spend and bribe, you leave if you were born here and have no pedigree or connections.

The "pequeno cantinho" (little corner) is pretty much an experience in corruption and mismanagement that will forever be a small player on the European stage. Investors only gloss over Portugal because of high skill and low wages, but with the high skill leaving, Portugal will be an old, socialist Cuban-like stagnant country with lots of solar panes and windmills....and still massive taxation.
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+3 #3 alex santos 2016-05-29 11:00
These companies make millions that go to schemes such as the Panama Papers... nobody talks about it though... Thats why unless the corrupted families that run the country stop being in control, there is no future in Portugal. The county is currently barely surviving with the taxes payed by the lower classes. These power families then bribe the government to allow this to go on and on.
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+6 #2 Ed 2016-05-28 08:56
Quoting Chip:
A week ago we were told that Portugal had used renewable energy for 4 days out of 7.
Perhaps there is a connection? Windmills and solar panels don't come cheap.
For the 2015 accounts review, see: http://www.algarvedailynews.com/news/8141-edp-profits-tumble-due-to-poor-home-market-performance and for the board's €15 million cost and Chairmans's €2 million+ pay deal, see: http://www.algarvedailynews.com/news/8274-edp-boss-gets-360-000-bonus-for-leadership-qualities-and-strategic-vision
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0 #1 Chip 2016-05-28 08:00
A week ago we were told that Portugal had used renewable energy for 4 days out of 7.
Perhaps there is a connection? Windmills and solar panels don't come cheap.
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