Portuguese gov’t announces measure to cap gas price

The Portuguese Council of Ministers announced on Friday a measure to halve the price of gas used for electricity production for both domestic and industrial consumers, who have been severely affected by this year’s electricity price inflation.

The mechanism adopted by Portugal after negotiation with the European Union establishes that, for the next 12 months, gas will cost an average of 48.8 euros/megawatt-hour (MWh) — almost half the current price.

Minister for the Environment and Climate Action Duarte Cordeiro explained at a press conference that this is an “unprecedented measure” with the aim of “limiting the scale of prices, protecting those who are most exposed and socializing the costs and benefits.”

“We will obtain a very significant reduction in the price of electricity, thus generating savings for families and companies,” he said. (1 euro = 1.04 U.S. dollars)