Portugal to inject 3 bln euros into energy systems to lower prices
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LISBON, Oct 12 (Reuters) - Portugal will inject 3 billion euros ($2.91 billion) in its electricity and natural gas systems to curb energy prices paid by companies next year via a combination of state spending and regulatory measures, the government said on Wednesday.
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The environment and energy minister, Duarte Cordeiro, told reporters that "this is the biggest intervention ever made in the energy markets" in the Iberian country and it should save around 30% of the estimated electricity tariffs for 2023 and between 23% and 42% on gas.
The plan is expected to enter into force on Jan. 1, but it will involve a direct transfer of 1 billion euros from this year's budget and a further 500 million euros in other policy measures, while regulatory measures will amount to 1.5 billion euros.
Cordeiro said the measure "was calibrated to counter a scenario of a significant increase" in electricity and natural gas market tariffs during 2023.
To protect electricity consumers, Spain and Portugal already capped the price of gas used in power generation in June, which has helped curb local power prices, as did a decision by Lisbon to allow households and small businesses to switch to lower regulated tariffs since the beginning of October..
But many companies, such as in the tiles industry and other energy-intensive sectors, are still fully exposed to soaring natural gas prices after Russia's invasion of Ukraine. ($1 = 1.0303 euros) (Reporting by Sergio Goncalves, editing by Andrei Khalip)