Lisbon, March 19, 2026 (Lusa) - Portugal's cabinet approved three decrees on Thursday to strengthen energy sovereignty and security, and to protect the most vulnerable consumers in the event of an energy crisis driven by rising oil and gas prices.
The new consumer protection mechanism is triggered if retail energy prices rise by more than 70%, or exceed 2.5 times the average price of the last five years, surpassing €180 per Megawatt-hour (MWh).
If an energy crisis is declared, the government can take measures to support domestic customers and companies by setting energy price limits "below cost price," the minister of cabinet affairs explained.
This difference, to be supported by the state, "will be recovered later," he said.
The energy price cap must also be accompanied by energy efficiency measures. Households must reduce their consumption to 80% of the previous year's level, and companies to 70%.
This mechanism can be used if an energy crisis is declared, "which will happen if prices continue to rise", he said.
In that case, government support cannot be considered European Union (EU) state aid.
Regarding consumer protection, the government will require energy suppliers to offer one-year fixed-price contracts in regions with more than 200,000 inhabitants if prices worsen.
Suppliers will also be required to accept longer payment plans tailored to families' economic situations.
In the event of non-payment, and before supply is interrupted, Minister Leitão Amaro explained that there must be "a guarantee of minimum supply" for families, which will involve reducing consumption power to 1.5 kVA before any disconnection.
The minister added that the government would monitor global price trends to decide which measures to activate to prevent an increase in the cost of living.
"Measures will be adopted according to the evolution and forecast of the specific situation," he said.
He noted that the government has already acted on fuel price increases with the ISP (fuel tax) discount, but that for electricity, "the situation is different" because supply contracts are more stable, as is the case with gas.
To highlight the distinct case of electricity, the minister noted that in the first two months of 2026, nearly 80% of Portugal's consumption came from renewable energy sources rather than fossil fuels.
"We will act responsibly and appropriately at each moment of the cycle," he said, rejecting claims that the government acted late. He said that it had acted in advance, citing the additional ISP discount.
The cabinet also approved an increase in renewable energy production capacity to boost decentralised production and self-consumption, thereby reducing national energy dependence on fossil fuels.
CT/LYT // ADB.
Lusa
