Fixed-Price Power Contracts and Tougher Cut-Off Protections Arrive at the End of August
A decree-law taking effect at the end of August will force Portugal's largest energy suppliers to offer one-year fixed-price contracts and will bar cutting off vulnerable customers during peak summer and winter. A minimum 1.5 kVA supply, automatic social-tariff transfers and tailored payment plans a
From the end of August, the rules governing household electricity and gas contracts in Portugal are set to change — giving consumers access to guaranteed fixed-price deals and shielding the most vulnerable from having their power cut off during the hottest and coldest weeks of the year.
The changes come from a decree-law approved in Council of Ministers on 19 March, signed by President António José Seguro on 5 June and published in the official gazette, the Diário da República, on 29 June. It enters into force at the end of August. The consumer-protection association DECO has issued guidance explaining what households can expect.
Fixed prices, on demand
The headline measure obliges the largest suppliers — those with more than 200,000 customers — to offer contracts with a locked-in price for a minimum term of one year. During that period the supplier cannot unilaterally change the conditions or end the contract early. For households weary of watching their tariff drift upward, it is a chance to buy certainty: a bill that stays the same regardless of what happens on the wholesale market.
Limits on cutting off supply
The bigger shift is in protection for those who fall behind. Economically vulnerable customers will no longer be disconnected for non-payment during peak-consumption periods — the depths of summer and winter, when losing electricity is most dangerous. Before any cut, suppliers must guarantee a minimum supply of 1.5 kVA, enough to keep essential appliances running rather than plunging a home into darkness.
Other safeguards travel with the customer: the social tariff, a discount for low-income households, will transfer automatically when someone switches supplier, and vulnerable clients gain the right to payment plans tailored to their circumstances. Suppliers are also barred from cutting off anyone whose bill is under formal dispute. The energy regulator, ERSE (Entidade Reguladora dos Serviços Energéticos), will set the detailed procedures.
A lever for crises
The decree also hands the government a new tool for emergencies. Whenever an energy crisis is formally declared — at national or EU level — ministers will be able to take exceptional steps to protect households and small and medium-sized businesses, including capping or fixing prices outright. It is a direct response to the price shocks that rippled across Europe in recent years.
For Portugal's residents, including the many foreign nationals who have moved here in the past decade, the practical advice is simple: when the rules take effect at the end of August, it will be worth asking your supplier about a one-year fixed-price option and checking whether you qualify for the social tariff. The protections exist only for those who claim them.
