Setting up electricity in Portugal

Last verified: September 2026.

Who this is for

• Tenants and owners, EU or non-EU, who need an electricity contract in their own name for a home in mainland Portugal.
• Anyone already connected who wants to check their contracted power, tariff, or bill, or switch supplier.
• Lower-income households who want to know whether the social tariff applies to them.

Not for you if: you want the overview of all four utilities (electricity, gas, water, and internet). Read "Setting up utilities in Portugal" instead. If you do not yet have a tax number, read "Getting a NIF (tax number) in Portugal" first.

Updated September 2026. Since 1 January 2025 the 6% VAT rate covers the first 200 kWh a month, not 100 kWh. A new law in force since August 2026 obliges large suppliers to offer fixed-price contracts and lets the social tariff follow you when you switch. ERSE's 2026 regulated prices are included below.

An electricity contract (contrato de eletricidade) is signed with a supplier of your choice, not with the network. You need one as soon as you take over a home: nothing transfers from the previous occupant. With the property's CPE code, your NIF, ID, proof of address, and an IBAN, you can sign online in about 20 minutes. A smart-meter home is usually live within a day or two; a technician visit must be offered within three working days. Switching supplier is free and takes at most three weeks.

How the market works and who does what

Two companies are involved in every home. The comercializador (supplier) is the company you sign with and pay. The operador de rede (network operator) owns the cables and the meter. On the mainland the network operator is E-Redes, and it is the same whoever bills you. You never contract with E-Redes directly. Your supplier sends E-Redes the order to activate, read, or reconnect your meter.

Portugal has two retail markets and you can use either:

• The free market (mercado livre). Around 30 licensed suppliers set their own prices. The largest are EDP Comercial, Galp, Endesa, Iberdrola, Goldenergy, Repsol, and Plenitude, with smaller players such as Luzboa, MEO Energia, and the renewable cooperative Coopérnico. Most homes are here.
• The regulated market (mercado regulado). ERSE, the energy regulator, sets the price once a year. The supplier is the comercializador de último recurso (supplier of last resort), which on the mainland is SU Eletricidade. About 817,000 homes were still on it in late 2025.

The regulated tariff is open to any home with contracted power up to 41.4 kVA. It was due to end in 2025 but has been extended to 31 December 2027. You can move to it from the free market, and back again, at any time. Treat it as a safe benchmark: ERSE's own bulletins show the cheapest free-market offers usually undercut it.

If a free-market supplier fails or your contract ends without a replacement, SU Eletricidade picks you up automatically. You will not lose supply, but you will pay its rate until you choose a new supplier.

What you need before you sign

Gather these once and the contract takes minutes:

• NIF (tax number). No supplier will open a contract without it.
• Identity document. Cartão de Cidadão, residence permit, or passport.
• Proof that you occupy the home. The rental contract or the escritura (deed). Some suppliers do not ask, but have it ready.
• The CPE (Código de Ponto de Entrega). See below.
• A current meter reading. Photograph the meter on the day you get the keys.
• An IBAN for débito direto (direct debit). Most suppliers give a small discount for direct debit and electronic billing. Several online forms accept only Portuguese IBANs.

For a brand-new building, or a home cut off for years, E-Redes may also ask for a certificado de exploração (installation certificate) from a licensed electrician before it will connect. Your supplier will tell you if this applies.

What the CPE is and where to find it

The CPE is the 20-character code that identifies the connection point, not the customer. On the mainland it starts with PT0002. It stays with the property when tenants and owners change, so the new supplier uses it to register your contract against the right meter.

You will find it:

• On any previous electricity bill for the address. Ask the landlord, the seller, or the previous tenant for the last bill.
• On a label on the meter or inside the meter cabinet.
• Through E-Redes. Register at the Balcão Digital (balcaodigital.e-redes.pt) or call customer support on 218 100 100 with the full address.

If the property has never been connected, there is no CPE yet. You or your builder file a connection request (pedido de ligação) with E-Redes, which surveys the site and quotes for the works. That can take weeks and cost anywhere from a few hundred to several thousand euros, depending on the distance to the network. Once the connection exists and the CPE is issued, you sign with any supplier as normal.

Choosing your contracted power

Every contract states a potência contratada (contracted power) in kVA. It caps how much you can draw at once. Exceed it and the main breaker trips until you switch something off. It also sets the fixed daily charge on your bill, so the higher the level, the more you pay every day whether or not you use it.

The standard levels for homes are 1.15, 2.3, 3.45, 4.6, 5.75, 6.9, 10.35, 13.8, 17.25, and 20.7 kVA. As a guide:

Two points before you pick. Stay at 6.9 kVA or below if you can: both the social tariff and the reduced VAT tranche stop above that level. And do not simply copy the previous occupant's level. A common mistake is inheriting 6.9 kVA in a small flat that runs happily on 3.45 kVA. On the regulated tariff that costs about €64 a year more, before VAT, for nothing.

You can change the level at any time through your supplier. With a smart meter it is done remotely within days; an older installation may need a technician.

Choosing a tariff: single, two-rate, or three-rate

The second choice is the opção horária (time option), which decides whether the price per kWh changes with the hour.

• Tarifa simples (single rate). One price all day. The safe default if you cannot shift when you use power.
• Tarifa bi-horária (two-rate). A cheaper rate in the horas de vazio (off-peak hours) and a dearer one the rest of the time. It pays off if you can run the washing machine, dishwasher, water heater, or car charger in the off-peak window.
• Tarifa tri-horária (three-rate). Off-peak, mid (cheias), and peak (ponta) rates. Only worth it for larger homes that move most of their load into the off-peak hours.

Two-rate and three-rate contracts come in two cycles. The ciclo diário (daily cycle) has the same off-peak window every day: 22:00 to 08:00. The ciclo semanal (weekly cycle) has a shorter weekday window, 00:00 to 07:00, but counts most of Saturday and all of Sunday as off-peak. Households that do their heavy loads at the weekend usually do better on the weekly cycle.

On the regulated tariff, the off-peak rate is about 45% cheaper than the peak rate, but the peak rate is 20% dearer than the single rate. At those prices, two-rate only wins if more than about 37% of your consumption falls in the off-peak window. Your supplier's app, or the E-Redes Balcão Digital, shows your hourly consumption if you have a smart meter, so you can check before changing.

You can change the time option through your supplier without a meter visit if you have a smart meter, and ERSE has removed the old 12-month wait between changes. Note that ERSE is redrawing the off-peak and peak hours to match solar production. The new hours will not apply before 1 January 2027, and we will update this guide when they are set.

Fixed or indexed price

On the free market you also choose between a fixed price, locked for the contract term, and an indexed price, which follows the Iberian wholesale market (MIBEL) month by month. Indexed contracts are cheaper when wholesale prices are low and painful when they spike. Since August 2026 every supplier with more than 200,000 customers must offer at least one fixed-price, fixed-term contract of a year or more, so a price-certainty option always exists at the big retailers.

What it costs: the 2026 regulated prices

ERSE's regulated tariff for 2026 rose by 1.0% on average for homes. These are the mainland prices before VAT, and they are the benchmark to compare any free-market offer against:

ERSE's worked examples for January 2026 give €36.82 a month for a couple on 3.45 kVA using 1,900 kWh a year, and €95.03 for a family on 6.9 kVA using 5,000 kWh a year, both including taxes. Free-market offers sit a few cents per kWh either side of the regulated energy price. Typical consumption is 1,500 to 2,500 kWh a year for a one- or two-person flat and 4,000 to 6,000 kWh for a family home with electric cooking and hot water.

A large share of every kWh is the tarifa de acesso às redes (network access tariff), which ERSE sets each year (up 3.5% for homes in 2026) and which is identical on every supplier's bill. Suppliers only compete on the remainder, which is why a headline "10% off" is smaller than it sounds.

How to compare offers

Use ERSE's own simulator at simulador.precos.erse.pt. It is free, covers every licensed supplier, regulated and free, and ranks offers by total annual cost. Enter your contracted power, your time option, and your consumption. If you do not know your consumption, use the last bill for the address or the typical figures above.

Commercial comparison sites list only the suppliers that pay them, so run ERSE's simulator first and use the others to check details. Re-run it once a year, or whenever a promotional period on your contract ends.

How to open the contract, step by step

1. Collect the CPE and a meter reading, and decide your contracted power and time option.
2. Run the ERSE simulator and pick a supplier and offer.
3. Sign up online, by phone, or in a shop. Before you sign, the supplier must give you a ficha contratual (contract summary) showing prices, term, and any loyalty clause. You can cancel a contract signed online or by phone within 14 days without giving a reason (30 days if a salesperson came to your door).
4. The supplier sends the activation order to E-Redes. If the meter is a smart meter and the supply is simply switched off, E-Redes turns it on remotely. If a technician must visit, E-Redes must offer an appointment within three working days of your supplier booking it.
5. Check the first bill or the app for the correct CPE, contracted power, and time option. Errors here are common and easiest to fix in the first month.

If the supply is already active in the previous occupant's name, your contract replaces theirs. Nobody needs to cancel first.

How long it takes

• Existing home with a smart meter, supply switched off: E-Redes activates it remotely, often the same or the next working day.
• Existing home, technician needed: appointment within three working days.
• Switching supplier on a live connection: no interruption at all; the change completes within three weeks.
• New connection with no CPE: several weeks, sometimes months, depending on the works E-Redes has to do.

The social tariff (tarifa social) and who qualifies

The tarifa social is a 33.8% discount in 2026 on the regulated part of the bill. It applies on both the free and regulated markets, and your supplier must apply it. ERSE's example household on 3.45 kVA using 1,900 kWh a year saves €13.44 a month, cutting a €36.52 bill to €23.08.

You qualify if the contract is for your permanent home, the contracted power is 6.9 kVA or less, and one of these applies:

• You receive Complemento Solidário para Idosos (elderly solidarity supplement), Rendimento Social de Inserção (social integration income), unemployment benefit, first-tier Abono de Família (family allowance), the social old-age pension, or the social invalidity pension.
• Your household's annual income is €6,272.64 or less. Add 50% of that figure for each household member without income, up to ten members (€34,499.52 for ten).

You do not apply. DGEG, the energy directorate, checks tax and social security data automatically, and your supplier then notifies you and applies the discount unless you object within 30 days. If you think you qualify and it is not on your bill after three months, ask your supplier for a review with proof of income. Since August 2026 the discount follows you automatically when you switch supplier.

Households on the social tariff and on the benefits above also pay a reduced audiovisual contribution of €1 a month instead of €2.85.

How to read your bill

Every supplier's bill has the same building blocks:

• Potência (fixed term). The daily charge for your contracted power, multiplied by the days billed.
• Energia (energy). Your kWh in each period multiplied by the rate. This is where suppliers compete.
• Network access. Usually folded into the two lines above rather than shown separately.
• Taxa DGEG. A small regulatory fee, a few cents a month.
• IEC (imposto especial de consumo). A small special consumption tax charged per kWh.
• CAV (contribuição audiovisual). €2.85 a month plus 6% VAT, which funds public broadcaster RTP. Homes using under 400 kWh a year are exempt.
• IVA (VAT). See below.

Check three things on every bill: whether the reading is real (leitura real) or estimated (estimativa), whether the contracted power is what you chose, and whether the rates match the time option you signed for. If you do not have a smart meter, submit a reading every month through the app or on 800 507 507 so bills are real rather than estimated.

The VAT rules

Electricity VAT is split. For any home with contracted power of 6.9 kVA or less, the first 200 kWh in each 30-day period are taxed at 6% and the rest at 23%. Households of five or more registered members get 300 kWh at 6%, but must send the supplier a tax return or a municipal family card as proof. At 3.45 kVA or below, the fixed daily charge is also at 6%. Above 6.9 kVA everything is at 23%. Every supplier on either market applies the 6% rate automatically.

Switching supplier

Switching is free, needs no visit, and never interrupts supply. Only the company that bills you changes. Sign with the new supplier and it handles the cancellation; you do not need to contact the old one. The switch completes within three weeks, and the old supplier has six weeks to send a final bill based on the reading on the switch date.

Check your current contract for a período de fidelização (loyalty period). The law caps it at 12 months, allows it only when tied to a specific benefit such as a discount, and stops it renewing automatically. If you leave early you pay the penalty stated in the contract, so time the switch for when the period ends. The regulated tariff has no loyalty period.

Your rights if something goes wrong

Power cut. Cuts are an E-Redes matter, not your supplier's. Call 800 506 506 (free, 24 hours). Voltage problems and repeated micro-cuts go to the same number.

Cut for non-payment. Your supplier must send a written notice first. Once you pay, E-Redes must reconnect within 12 hours (counting 08:00 to midnight), or within four hours for a €45 urgent surcharge. Standard reconnection costs €3.81 remotely or €14.97 with a technician, before VAT.

Under the August 2026 rules, a supplier may not cut you off while a billing complaint or dispute is open. It must offer a payment plan once you are more than 60 days in arrears. Economically vulnerable households cannot be cut off during the winter and summer peak periods.

Wrong bill. Complain to the supplier first, in writing or in the livro de reclamações (complaints book, available online). If that fails, take it to ERSE or to a consumer arbitration centre, which gives a free, binding decision.

Leaving the property. Cancel the contract in writing from the date you hand back the keys, with a final reading. Do not just stop paying: the debt follows your NIF, not the address. Ask the supplier to refund any deposit to your IBAN.

Sources

• ERSE, Tarifas e Preços para a Energia Elétrica e Outros Serviços em 2026: https://www.erse.pt/media/irglmtt3/tarifas-e-pre%C3%A7os-se-2026.pdf (regulated prices per kVA and kWh, E-Redes reconnection fees)
• ERSE, Comunicado Tarifas e Preços para a Energia Elétrica em 2026: https://www.erse.pt/media/5dypdjby/comunicado-tarifas-ele_2026.pdf (1.0% increase, example bills, 817,000 regulated customers, network access tariff change, 33.8% social tariff)
• ERSE, Tarifa Social na Eletricidade em 2026: https://www.erse.pt/media/02gh5y04/tarifa-social-eletricidade-jan2026.pdf (eligibility, income thresholds, 6.9 kVA limit, automatic attribution, 30-day objection, example saving)
• ERSE, Contratar ou mudar de comercializador: https://www.erse.pt/consumidores-de-energia/eletricidade/contratarmudar-de-comercializador/ (free switching, three-week deadline, six-week final bill, 12-month loyalty cap, 14-day and 30-day withdrawal)
• ERSE, Perguntas e respostas sobre a atualização dos períodos horários: https://www.erse.pt/media/4cgd4dpb/ersexplica_perguntas_e_respostas_per%C3%ADodos-hor%C3%A1rios.pdf (new time periods not before 1 January 2027, removal of the 12-month wait to change time option)
• ERSE, price simulator: https://simulador.precos.erse.pt (comparison tool)
• E-Redes, Contactos: https://www.e-redes.pt/pt-pt/contactos (800 506 506 faults, 800 507 507 readings, 218 100 100 customer support, Balcão Digital, CPE on the bill)
• Regulamento n.º 826/2023, Regulamento da Qualidade de Serviço dos Setores Elétrico e do Gás: https://files.diariodarepublica.pt/2s/2023/07/146000000/0030400428.pdf (remote activation, three-working-day appointment, 12-hour and 4-hour reconnection deadlines)
• Decreto-Lei n.º 130/2026, de 29 de junho, amending Decreto-Lei n.º 15/2022 and transposing Directive (EU) 2024/1711: https://atam.pt/decreto-lei-n-o-130-2026-de-29-de-junho/ (fixed-price contract obligation, cut restrictions, payment plans, social tariff portability); government note: https://portugal.gov.pt/gc25/comunicacao/noticias/consumidores-de-eletricidade-passam-a-contar-com-mais-protecao-e-previsibilidade-nos-precos
• Lei n.º 38/2024, de 7 de agosto (Código do IVA, Lista I, verba 2.36), summarised by APCMC: https://www.apcmc.pt/legislacao/iva-aumento-do-consumo-de-eletricidade-sujeito-a-taxa-reduzida/ (200 kWh and 300 kWh tranches at 6% from 1 January 2025, 6.9 kVA limit)
• ComparaJá, IVA na eletricidade 2026: https://www.comparaja.pt/energia/artigos/iva-eletricidade (6% on fixed term at 3.45 kVA and below, large-family proof, corroboration)
• EDP, Contribuição Audiovisual: https://www.edp.pt/particulares/apoio-cliente/contribuicao-audiovisual/ (€2.85 plus 6% VAT, €1 reduced rate, 400 kWh exemption)
• Portugal.gov.pt, Governo prolonga tarifa regulada da eletricidade até ao final de 2027: https://www.portugal.gov.pt/pt/gc24/comunicacao/noticia?i=governo-prolonga-tarifa-regulada-da-eletricidade-ate-ao-final-de-2027 (extension to 31 December 2027)
• Selectra, Preços da tarifa regulada de eletricidade: https://selectra.pt/energia/precos/tarifa-regulada-eletricidade (2026 regulated price table, 41.4 kVA eligibility, corroboration)
• Tiago Felícia, Períodos horários BTN: https://www.tiagofelicia.pt/periodos-horarios.html (current off-peak and peak hours by cycle, corroboration)

Last verified September 2026. Rules and fees change; check the official source before acting.