The Portuguese government is set to permit small businesses and households that purchase natural gas in the liberalised market to shift to regulated tariffs and sidestep massive price hikes by utility companies.

The measure, announced by the energy minister Duarte Cordeiro on Thursday, will be in effect for 12 months beginning on 1st October, in response to the rising cost of living, Reuters news agency reports.

Following a drive to liberalise energy costs since 2010, there are currently 1.4 million households and small businesses in Portugal with gas bills determined by market prices, that cannot legally switch to a regulated tariff, the energy minister stated, a move now being overturned by the government.

As it stands, government-regulated tariffs are lower than free market tariffs, and are set to rise by just 3.9% on 1st October. However, certain utilities have already announced price hikes of as much as 200%, Cordeiro added.
He forecasts consumers on regulated tariffs would pay under half of what they would otherwise pay. 

In addition, low-pressure gas consumers who have a yearly consumption under 10,000 cubic metres, are permitted to move to a regulated tariff.

The country’s largest natural gas supplier to households, EDP, announced this week prices would increase by 170% in October, after being on hold for months, despite the soaring global gas prices.

In regard to household market share, EDP is trailed by Galp which holds 23.3% of the Portuguese market, followed by Goldenergy with a 12.3% share, the Reuters report goes on to say.