18 November 2019
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  • PPEC - Consumption Efficiency Promotion Plan 

    In the performance of its duties, ERSE undertakes a set of activities which are aimed at promoting the active participation of consumers in the great challenge of sustainability, in terms of the efficient use of energy.

    The definition of tariffs which, on the one hand allow the recovery of costs associated with each activity, and on the other present billing variables which translate to the costs actually caused by each consumer, and lastly, which present structures and prices related to the structure of marginal or incremental costs, induces the rational use of electricity and associated resources. Under these circumstances, it is considered that the current methodology for calculating electricity tariffs established in the Tariff Code which covers the three requirements mentioned above, promotes efficiency in the consumption of electricity.

    Further, the recognition of the existence of various barriers (extended payback period, the difference between supply prices or applicable tariffs and short-term marginal costs, external factors, lack of information and high associated transaction costs, misalignment of interests between agents and the financial constraints of consumer) in the adoption of more efficient equipment and consumption habits by consumers, as well as the possible existence of external environmental factors not reflected in the price, justifies the implementation of measures to promote efficiency in consumption.

    Recognising this situation, ERSE has tried to ensure that the regulation of the sector dynamises actions which contribute to the promotion of energy efficiency in this area. In particular, in the Tariff Code for the electricity sector, a competitive mechanism called the Consumption Efficiency Promotion Plan (PPEC) has been established to promote measures for managing demand.

    In the electricity PPEC, incentives are awarded for the promotion of measures aimed at improving efficiency in electricity consumption through measures taken by suppliers, network operators and organisations that promote and protect the interests of electricity consumers in mainland Portugal and in the Autonomous Regions, and which are aimed at consumers of different market segments.  The actions result from specific measures proposed, subject to a selection tender, whose criteria are defined in the Rules for the Consumption Efficiency Promotion Plan (portuguese version), approved after a public consultation. This tender allows the selection of the best measures for energy efficiency to be implemented by the abovementioned promoters, taking into account the amount available in the PPEC annual budget which is approved at the start of each regulation period for each one of its years.

    There are currently six editions of the PPEC:

    • The PPEC 2007 was implemented in 2007, 2008 and 2009.
    • The PPEC 2008 was implemented in 2008, 2009 and 2010.
    • The PPEC 2009-2010 was implemented in 2009, 2010 and 2011.
    • The PPEC 2011-2012 was implemented in 2011, 2012 and 2013.
    • The PPEC 2013-2014 was implemented in 2014, 2015 and 2016.
    • The PPEC 2017-2018 (portuguese version) is being implemented.
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Extinction of Regulated Tariffs

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