The tariff proposal of the Regulatory Entity for Energy Services (ERSE) foresees – in addition to a 1% increase in electricity prices in the regulated market in 2026 – an increase of 93 million euros in the regulated income of E-Redes (a company in the EDP group that operates the electrical distribution networks) to 1224 million next year, in the context of the operation of the electricity distribution network, EDP announced this Thursday.
A estes add up regulated revenue of 47 million euros in 2026 for the supplier of last resort (SU Eletricidade, also from EDP)a company responsible for supplying electricity to consumers in the regulated market.
In a statement sent to the Securities Market Commission (CMVM), EDP highlighted the forecast of “regulated revenue of 1,224 million euros in 2026 (including adjustments from previous years), an increase of 93 million compared to 2025, for the distribution network operation activity, developed by E-Redes, which are assumed as regulatory parameters for 2026-2029”.
The electric points to “a preliminary pay rate of 6,33%, antaxes”above the fee of remuneration of reference of the current period of regulation from 4.70%. By comparison, andm Spain, where EDP also operates in network management, the remuneration model “has a fixed component and a variable component, dependent on consumption”. “The sector has already signaled that these conditions in Spain do not make much sense. We have banks that look at the entire European electricity sector and tell us that the remuneration for distribution networks in Portugal and Spain is among the lowest in Europe. The sector asked the consultancy NERA for a study [National Economic Research Associates] to try to homogenize all taxes in Europe. Spain has a rate of 6.42% and NERA estimates that it would make sense to increase it to 7.8%”said Pedro Vasconcelos, executive director of EDP, in ainterview with Expresso.
For Portugal, the person responsible says he has hope “in a sustainable and bearable remuneration for the tariffs and the national framework”, with the “caability to unlock a huge investment component and associate it directly with networks and indirectly unlock industrialization in Portugal”
“We are at a time when there is good air in the sector, with relatively controlled tariffs and a substantial penetration of renewables. We have a medium-term tariff profile with the exit of guaranteed tariffs for wind and others, and a tariff debt that will end in the coming years. If we manage to give a right signal for more investment in networks, and with that later unlock the demand for more electricity, that will be the key to us stopping see zero or negative prices”, he explained. For 2025 and 2026, the regulator estimates an average rate of evolution of electricity consumption of 1.6%while the average cost of energy acquisition by SU Eletricidade forecast for 2026 is €78.11 per MWh.
In the document sent to CMVM, EDP adds that “during the regulatory period 2026–2029to charge of remuneration may vary between a minimum of 5,50% and maximum 8,50%, the final rate being defined as a function of the daily average of the yields on 10-year Treasury Bonds of the Portuguese Republic.” And he adds: “Andthis preliminary rate for 2026 tem how to presupI see a value of 3,155% for the indexer, with a variation of 1% of Treasury Bond yields implies a variation of 0,3% of the rate remuneration”.
According to EDP, “in 20272028 e 2029the base of operating costs and investments accepted by the E–Networks, must be adjusted annually by an efficiency factor of 0,50%”o which compares to the current 0.75%, states the same statement.
In its tariff proposal for next year, the regulator states that the profits allowed in energy transport and distribution activities electricity increased due to the “strong expected increase in investments in infrastructure network for the new regulatory period 2026-2029″ and also due to the “increase in pay rates of assets, which follows the evolution of financial markets”.
Concerning REN, which operates the electricity transmission networks in Portugal, ERSE’s proposal refers to recoverable income worth more than 375 thousand euros. “The value of the asset remuneration rate to be applied to electrical energy transportation activities and global system management in 2026 tariffs is of 6.12%. A premium of +0.75% is added to the remuneration of assets”, says ERSE, pointing to a minimum of 5.29% for REN’s remuneration rate and a maximum of 8,29%.
ERSE usually delivers its tariff proposal for the following year in mid-October. Next month, it will be evaluated by the ERSE tariff council (a body that includes associations representing consumers and suppliers, among other entities). This council will formulate an opinion by mid-November. And ERSE will publish on December 15th the final version of the tariffs to be in force from January 1st, 2026. This final version may be the same as the current one or be changed depending on the contributions of the tariff council.