Suspension of the Principles for Setting Secondary Regulation Band Prices and Public Consultation on the distribution of financing costs for the social electricity tariff in 2025 and adjustments for 2024 and 2025
Meet The Law - Energy & Climate Change
1. Suspension of the Principles for the Formation of the Secondary Regulation Band Price – Order No. 12889/2025
On 3 November, Order No. 12889/2025 was published, suspending the validity of Article 3 of Order No. 4694/2014 of 1 April, which establishes the principles for the formation of the secondary regulation band price.
Order No. 4694/2014, aiming to respond to a significant rise in prices in the system services market, detected by the Energy Services Regulatory Authority (ERSE), namely in the secondary regulation band (BRS) market, established the general guidelines for the procedures to be followed in calculating the reviewability, in relation to the participation in that market of power plants with costs for maintaining contractual balance, and also established the principles for setting the price of the secondary regulation band.
With the evolution of the system services market towards a harmonised European model, namely due to the replacement of the BRS by the automatic Frequency Restoration Reserve (aFRR), contracted and settled on the single platform Platform for the International Coordination of Automated Frequency Restoration and Stable System Operation (PICASSO), Article 3 of Order No. 4694/2014, which sets limits on BRS prices, is no longer appropriate.
Order No. 12889/2025 therefore suspends the validity of Article 3 of Order No. 4694/2014 and establishes a period of monitoring of market behaviour, with a view to its effective repeal when the connection to the PICASSO platform is implemented. In the event of market distortions, the member of the Government responsible for energy may determine, with immediate effect, the end of the suspension of Article 3 of Order No. 4694/2014.
The order came into force on the day following its publication and can be consulted here.
2. Public consultation on the proposed allocation of the costs of the social electricity tariff in 2026 and adjustments for 2024 and 2025 – Notice No. 27672/2025/2
On 6 November, Notice No. 27672/2025/2 was published in the Portuguese Official Gazette, concerning ERSE's public consultation on the proposed distribution of funding for social electricity tariffs in 2026 and adjustments for 2024 and 2025.
Decree-Law 15/2022 of 14 January establishes in Article 199-D. No. 4 that the calculation of the settlement of the social tariff for each year, payable by the owners of electricity production centres, marketers and other market agents in accordance with consumption, including the value of adjustments and corrections relating to previous years, shall be submitted by ERSE to public consultation.
Therefore, in compliance with this rule, ERSE today launched a public consultation on the proposed distribution of costs for the social electricity tariff in 2026 and adjustments for 2024 and 2025.
The public consultation ends on 5 December and can be consulted here.
