Ah, Portugal! Land of pastel de nata, sunny beaches, and… confusing utility costs? If you’re moving here, get ready for a new world of utility charges, electricity rates, and providers. But don’t fear! Setting up your utilities in Portugal may take a bit of navigating and research, but enjoying this sunny location is worth the effort.  

The Main Electricity Providers in Portugal

EDP (Energias de Portugal) is the major electric company here, but let’s just say they don’t win any popularity contests with expats. Online forums are buzzing with complaints about everything from sky-high rates and erroneous billing to scathing reviews of their customer service. 

We’ve been using EDP since we arrived in September 2021 and set up the utilities for our rental home in Lisbon. Our landlady, Isabel, is one of the nicest people I’ve ever met, and she helped us a ton when we arrived. Not only did she help us get Portuguese cell phones set up, but she also helped with our Wi-Fi, changed the water/trash bill to our bank account (but still in her name), and took us to an EDP location to set up our electric bill.  

I had no idea until recently that EDP is not the only option for electricity.  While our experience hasn’t been stellar, it hasn’t been horrible. I like that they offer customer service with English reps (especially when we moved and I didn’t speak Portuguese yet!), and they have an appliance program I’ve utilized for our dryer twice already. However, we’ve also gotten surprise bills in the hundreds of dollars, and I don’t understand the logic behind them.

Everywhere I have lived in the USA, only one company has the right to provide electricity in an area. Not so in Portugal.

Here’s the zap of good news – EDP isn’t your only option! Did you know Portugal has a deregulated energy market? That’s right! You can shop around and choose between multiple electricity providers to score a better deal.

The Power Is Yours When Choosing Your Energy Provider in Portugal

Besides EDP, some other big providers to scope out include:

• Goldenergy: Solid ratings from expats for pricing and service. Reviews indicate that it offers a discounted rate for the first few months, providing sometimes a more affordable option compared to others, along with excellent customer service. They also operate in the major cities: Lisbon, Porto, and Algarve.
• Endesa: A Spanish company with residential packages in Portugal.
• Iberdrola: Another Spanish provider.
• Local municipal providers: These are available in some regions.

In reality, scoping these out when you first arrive in Portugal can be challenging if you are not already fluent in the language.  I appreciate that EDP has an English option when I call customer service and typically has an English-speaking representative (although not always).

If you can get someone to help you, such as your landlord, a friend or even a company like Moviinn, you can work to get the best rate for you.

Understanding Your Usage On Your Portuguese Utility Bill

Before comparing providers, you’ll want to understand your projected usage. This will allow you to compare apples-to-apples pricing. Most providers estimate usage based on:

• Home size (square meters): Larger homes typically use more electricity.  If you are scoping out rental homes on a site like Idealista, you should know what square meters you might move into.
• Number of occupants: More people means more electricity consumption.
• Types of appliances (AC, electric heat, etc.): High-energy appliances increase usage.  We both work from home and have two teenagers who do school online.  We have LOTS of devices in our home using electricity.
• Energy efficiency ratings of appliances: More efficient appliances use less energy.  You may need to buy appliances for your new home and can try to buy more energy-efficient appliances to help with this.
• Usage habits (AC settings, loads of laundry, etc.): Daily habits can significantly impact usage. In general, the Portuguese hate to waste electricity. They constantly shut off lights and turn off or unplug appliances. This stems mainly from the cost of electricity, which is expensive compared to average income. Also, Europe has a much higher sensitivity to global awareness.

Be prepared to provide specifics about your home and family size. It’s better to err on the higher end for estimates, as underestimating could lead to surprise peak usage charges. Most providers offer live support on their websites, allowing you to get an average quote online.

Decoding Your Electricity Bill in Portugal

Are you having difficulty understanding your electricity bill? Electricity bills can be confusing due to complex jargon and numerous numbers. Throw in trying to decode the bill in a new language, and it can be quite hard!

Breaking down the key components of your bill can help you understand it better and save a few euros in the process.

Key Components of Your Portuguese Electricity Bill

• Meter Number: This unique identifier pinpoints the equipment installed at your residence.
• Meter Point Reference Number (CPE): This code locates your consumption site, furnished by E-REDES, the Electricity Distributor, and your Energy Supplier. It is a key piece of information to have on hand when contacting E-REDES.
• Contracted Power: This figure denotes the power delivered to your residence. The required power hinges on various factors, such as your household’s electrical equipment. If you surpass your contracted power threshold, your supply might be disrupted. Typically, customers select a power level, ensuring uninterrupted supply. The supply’s quality hinges on your country’s electrical distribution regulated by E-REDES Distribution of Energy.
• Single-phase vs. Three-phase Systems: Single-phase systems consist of a single alternating current channeling the total power, which is common in households. Three-phase systems divide power into three distinct currents, each carrying a lesser power term, used in larger installations.
• Time-of-Day Rates: Terms like “Vazio” (Empty), “Ponta” (Peak), and “Cheia” (Full) indicate different rates based on the time of day, with off-peak hours (typically nights and weekends) offering cheaper rates.

Fixed Costs and Fees on Your Portuguese Utility Bill

• Contracted Power Fee: Determined by your supplier, this incurs a daily fee based on the contracted power, billed monthly.
• Audiovisual Contribution: A fixed monthly charge of €2.85 plus 6% IVA, funding public broadcasting. Eligible customers meeting the criteria for reduced contributions incur a cost of €1 plus 6% IVA.
• DGEG Fee: Levied by the Direção Geral de Energia e Geologia, this Exploration Fee for the use and exploration of electrical installations is currently set at €0.07.
• Special Electricity Consumption Tax (IEC): An extra charge of €0.001 per kWh.

Rates Rundown On Your Portuguese Bill

Let’s get to those burning electricity cost questions. What can you expect to pay each month? Well, it’s never one-size-shocks-all. Major factors impact your bill:

• Home size: Bigger place = more electricity needed.
• Age of home and insulation quality: Older homes are often less efficient.
• Energy efficiency of appliances: Efficient appliances lower usage.
• Your family’s habits: AC settings, heating use, and appliance usage play a big role.

Real Expat Examples

• For a newer, well-insulated 2-bed apartment in the Algarve region with AC/heat, bills can be €250-300+ per month.
• An older 3-bed home in cooler Porto with no AC? You could see bills around €100-150.
• A larger 4-bed villa in central Portugal with a pool and older appliances? Prepare for €400+.
• Our home, with 6 bedrooms and many appliances, including a clothes dryer we use daily, runs between €300-700/mo.

Contract Considerations for Portuguese Utilities

Once you’ve narrowed down providers based on rates, there are a few more factors to consider:

• Flat rate vs. variable pricing: Variable could mean lower bills in mild seasons.
• Introductory promotions: Are there discounts for enrollments?
• Bundling options: Many offer packaged discounts for combining electricity with internet/TV.
• Contract terms: Look for short commitments to allow for re-shopping rates annually.
• Renewable energy options: Some providers allow opting for renewable sources for a fee.
• Referral bonuses: Available for existing customers.

Top Tips for Managing Your Portuguese Utilities 

• Compare providers annually: Rates can fluctuate each year.
• Upgrade to A+++ efficient appliances: This can curb costs.
• Manage AC use: During sweltering summers, aim for 25-27°C to keep bills lower.
• Winter savings: Check if you qualify for heating bill discounts/assistance programs.
• Annual payments: If you can swing it, many providers offer a discount for paying annually.
• Gas: As far as I know, there is no gas connection to the city.  Everyone who uses gas receives gas canisters that need to be replaced when supply runs out.  We use gas for our stovetop, dryer and water heater.  For a large container, we spend around 90€ and it lasts us 1-2 months. For a couple of adults this large tank could easily last six months or more.
• Smart meter: Install one to track your real-time usage better.

Essential Guide To Setting up Electricity in Portugal

This guide will walk you through the process step-by-step, from choosing providers to gathering the necessary documents.

Finding Your Provider

Your first step is selecting an electricity provider. In Portugal, options abound, from major players like EDP to Iberdrola to Endesa. 

Once you’ve made your choice, prepare to share personal details such as your name, address, and identification number. Details about your property, including its address and type, are also required. Note that some providers may require a Portuguese bank account, so consider opening one before setting up your electricity service.  Note that your NIF, or Portuguese financial identifier number, will be used to manage your account.

Document Requirements

Once you’ve settled on a provider, gather the required documents to initiate your service:

• Identification: A copy of your passport or ID card.
• Proof of Address: Documentation such as a rental contract or property deed.
• Tax Identification Number (NIF): Essential for service setup; obtain from the Portuguese tax office (Finanças) if you don’t already have one.
• Bank Account Details: Needed if your provider mandates a Portuguese bank account.
• Meter Reading: Provide a meter reading if the property already has an electricity meter installed.

After submitting these documents, your chosen provider will set up your service and dispatch a technician to install the electricity meter at your property. The technician will also provide instructions on meter readings and share contact information for further inquiries.

Paying Your Portuguese Utility Bills

In Portugal, electricity payments are typically processed monthly via direct debit or at local payment locations. You can pay your utility bills at a multibanco (certain ATMs) using a reference and entity number.  Your provider will furnish details on payment methods and due dates for each billing cycle.

Navigating Portugal’s electricity landscape requires foresight and understanding. By choosing the right provider, mastering your usage patterns, and optimizing efficiency, you’ll manage your bills effectively and enjoy an uninterrupted power supply tailored to your needs. 

Additional Reading

Furnishing Your Family Home in Portugal – Where To Buy

Moving Your Family to Portugal from the United States: What to Know

How To Obtain A Portuguese D7 Visa For Your Family: Everything You Need To Know