The deadline for consumers to move their electricity supply account from EDP to one of the free market service providers had until Friday 25th November 2016 to make the change.
There’s good news for those who failed to choose a new supplier since the market was deregulated in 2006, as a Communist Party proposals was accepted by parliament on 25th November 2016, giving households until the end of 2020 before they have to make a choice.
Carlos Afonso Sobral, head of Selectra Portugal, an electricity tariff comparison website, believes that this delay is important for consumers. Sobral says that many Portuguese remain unaware of the advantages of the free electricity market and have no idea how many different companies are offering billing.
"Most Portuguese only know EDP and two or three other companies; when, in reality, Portugal already has 21 electricity suppliers in the free market. On many occasions, the companies that have the best tariffs are the smallest and least known because they try to get attention through low prices," said the energy expert.
EDP still has 85% of the consumer market despite over ten years of deregulation with consumers free to move from the former State monopoly. EDP customers have found themselves paying higher prices compared to the competition in an effort by the company to get people to move, hopefully to EDP Comercial, its 'free market' company. This scheme is due to end on 31st December 2017.
Sobral also points out that in the free market the consumer can change electricity supplier whenever they believes it necessary and without penalty: "some consumers are afraid to change company and leave EDP to which they are accustomed. But if they do move, they can return later or choose a new company without paying any type of charge for making the change. The consumer only needs to be aware of minimum contract periods if he has requested an extra service, such as a technical assistance plan."
Portuguese consumers now have another four years to understand the new and look at the companies offering cheaper deals.
In EDP owned by the Chinese?*
In December 2011, 'China Three Gorges Corporation' acquired a 21.35% Portuguese government's stake in EDP for €2.69 billion. Orise, S.a.r.l. controls a futher 3.02% of EDP's stock and is fully owned by Kindbright Holdings Corp. Limited, which in turn is fully owned by CNIC Co., Ltd. (formerly designated Guoxin International Investment Co., Ltd), which in turn is fully owned by People's Republic of China.
Other substantial shareholders include the Qatar Investment Authority and BlackRock and the US investment fund Capital Group with 14.99%. A further 7.24% of the voting rights of EDP are controlled by a complex web of companies, by Fernando Masaveu Herrero.
*For EDP's shareholding structure, see: http://www.edp.pt/en/Investidores/accaoedp/estruturaaccionista/Pages/ShareholderStructure2.aspx
