Household electricity prices have been very stable in the last decade: between 0.20 and 0.23 €/kWh.
This trend was in line with the European Union up until 2021 (a range of 0.20 to 0.23 €/kWh). After Russia’s invasion of Ukraine, the European Union saw its prices reaching all-time heights, at 0.29 €/kWh in 2023.
Portugal sustained its electricity prices as it did not depend on Russia for its energy imports and kept increasing renewable generation of electricity (73 percent in 2023). Additionally, the VAT reduction for the first 100 kWh per month consumed, as well as the “Mecanismo Iberico” with caps on gas prices, contributed to sustaining the price level. This resulted in, on average, Portugal’s household electricity prices in 2023 being 25 percent more affordable than the European Union’s.
