Portugal electricity bill in winter: why it doubles and the settings that help
A Portuguese electricity bill can double in winter: electric heating adds kWh, and every kWh above 200 a month jumps from 6% to 23% VAT. A model bill on ERSE tariffs.
Published . Updated . 6 min read.
A Portugal electricity bill often doubles in winter because electric heating adds a few hundred kilowatt hours a month, and every kWh above 200 in a 30 day period is taxed at 23% VAT instead of 6%. On the regulated tariff that applies from 1 October 2026, our model flat goes from about 39 euros in a mild month to about 80 euros in a heated one.
This post explains the mechanism with public numbers only. The bill below is a model we built from ERSE (the energy regulator) tariffs and published tax rules, not anyone's real invoice. Your own bill depends on your supplier, your contract and your flat.
Why are electricity bills so high in winter in Portugal?
Winter bills rise because most Portuguese flats heat with electricity, and the outside weather is not the problem. The IPMA 1991 to 2020 normals for the Lisbon Geophysical Institute station give a January average high of 14.8 C and an average low of 8.3 C, with about 100 mm of rain. That is mild. The housing is the issue. Portugal Expat Hub, in a guide updated in June 2026, points to older buildings with poor insulation and single glazing, no central heating, and a reliance on plug in electric heaters.
A plug in resistive heater turns one kWh of electricity into one kWh of heat. A 2,000 W oil radiator on full therefore uses 2 kWh every hour. Run it five hours a day on 20 working days and you add 200 kWh to the month. For two people working from home, that is the whole winter jump.
How much does a kWh cost in Portugal in 2026?
On the regulated tariff, a kWh costs 0.1711 euros before VAT on the simple option from 1 October 2026. ERSE sets these transitional tariffs for low voltage homes, and updated them through Directive 4/2026 (price table updated on 15 September 2026). Most households are on the free market instead, with fixed or indexed offers, but the regulated price is a fair public benchmark. Poupa Energia, the consumer portal run by ADENE, describes the three types: regulated, fixed and indexed to wholesale prices.
| Line on the regulated tariff (from 1 October 2026, before VAT) | Price |
|---|---|
| Contracted power 3.45 kVA | 0.1917 EUR per day |
| Contracted power 4.6 kVA | 0.2499 EUR per day |
| Contracted power 6.9 kVA | 0.3659 EUR per day |
| Energy, simple tariff | 0.1711 EUR per kWh |
| Energy, two period tariff, off peak (vazio) | 0.1143 EUR per kWh |
| Energy, two period tariff, outside off peak | 0.2045 EUR per kWh |
Source: ERSE tariff tables in force from 1 October 2026, BTN from 2.3 to 20.7 kVA.
Why does VAT make the winter bill jump?
VAT is the hidden multiplier: the first 200 kWh of each 30 day period are taxed at 6%, and everything above at 23%. ERSE explains the rule in its February 2025 note: since 1 January 2025, under Law 38/2024, the reduced rate covers the first 200 kWh for contracts up to 6.9 kVA, or 300 kWh for families of five or more. EDP gives the same rule on its customer pages. The fixed power charge carries 23% VAT above 3.45 kVA.
So a flat that uses 150 kWh in September stays entirely in the 6% band. Add a heater in January and the extra kWh arrive at full price plus 23% tax. In the model below, consumption rises 2.3 times while energy plus its VAT rises 2.5 times, from 27.20 to 67.84 euros.
What does a model winter bill look like?
Our model is two people in a one bedroom flat, 4.6 kVA, simple tariff, 30 days, regulated prices from 1 October 2026. It is a model, not a measured bill.
| Line | Mild month, 150 kWh | Heated month, 350 kWh |
|---|---|---|
| Energy at 0.1711 EUR per kWh | 25.67 EUR | 59.89 EUR |
| VAT on energy (6% up to 200 kWh, 23% above) | 1.54 EUR | 7.96 EUR |
| Power, 30 days at 0.2499 EUR | 7.50 EUR | 7.50 EUR |
| VAT on power at 23% | 1.72 EUR | 1.72 EUR |
| Audiovisual contribution, 2.85 EUR plus 6% VAT | 3.02 EUR | 3.02 EUR |
| Model total | about 39 EUR | about 80 EUR |
We leave out two small fixed items that appear on every bill, the DGEG operating fee and the IEC excise duty, which Poupa Energia lists among the bill lines. The audiovisual contribution of 2.85 euros plus 6% VAT per month comes from EDP's customer page.
What is potencia contratada and should you lower it?
Potencia contratada is the maximum power you can draw at once, and you pay for it every day whether you use it or not. Poupa Energia lists thirteen levels, from 1.15 kVA to 41.4 kVA, and says most homes sit between 3.45 and 6.9 kVA. On the regulated tariff, 6.9 kVA costs 0.1160 euros a day more than 4.6 kVA. Over a year that is about 42 euros before VAT, and about 52 euros with 23% VAT.
Many tenants inherit the level of the previous occupant without knowing it. Poupa Energia says you request a change in writing or through your supplier's website, and that the network operator adapts the equipment at no charge to the customer. The trade off: with less power, running the oven, the washing machine and a heater at the same time can trip the main breaker.
Is the bi-horario tariff worth it?
The two period tariff (bi-horario) pays off only if at least 37% of your consumption falls in off peak hours, on the October 2026 regulated prices. We get that break even by comparing 0.1143 euros off peak and 0.2045 euros outside it with the 0.1711 euro simple price. The power charge is the same on both options in the ERSE table.
Off peak runs from 22:00 to 08:00 on the daily cycle, and from 00:00 to 07:00 on weekdays in the weekly cycle. ERSE announced on 31 July 2026 that these windows move by half an hour (to 22:30 and 00:30) for homes on the two period tariff, rolled out between 1 July and 31 December 2027. Ask your supplier which cycle your contract uses.
A dishwasher, washing machine, water heater or dehumidifier on a timer shifts load to the night. Heating a home office from nine in the morning does not.
How can you keep a Lisbon winter bill down?
The cheapest kWh is the one you do not buy, and the second cheapest is one that stays under 200. In order of effect:
- Check whether the wall split unit heats. An air conditioner run as a heat pump delivers more heat per kWh than a resistive radiator. Look for a heat or sun symbol on the remote.
- Heat one room with the door closed rather than the whole flat.
- Control damp. Drying laundry indoors raises humidity, and damp air feels colder at the same temperature, which pushes the thermostat up.
- Read the potencia contratada line in your first month, not in January, and ask your supplier the price of one level lower.
- Compare the two period tariff against your real routine using the Poupa Energia simulators.
- Photograph the meter on move in day so estimated readings can be checked.
For context, Numbeo's Lisbon page (updated 24 September 2026) puts basic utilities for an 85 m2 flat at about 148 euros a month, including water, heating, cooling and rubbish. Put Lisbon next to other bases with Destination comparison, convert your budget with Currency check, and see the full monthly picture in our Lisbon cost of living budget.
Updated on 26 September 2026. Rules and prices change: confirm with the official source linked above before you act.
Frequently asked questions
Why are electricity bills so high in winter in Portugal?
Mostly because Portuguese flats heat with electricity. A 2,000 W plug in radiator uses 2 kWh an hour, so a few hours a day adds a couple of hundred kWh a month. Every kWh above 200 in a 30 day period is also taxed at 23% VAT instead of 6%, so the energy part of the bill grows faster than your consumption does.
How much is a kWh of electricity in Portugal?
On the regulated tariff in force from 1 October 2026, a kWh costs 0.1711 euros before VAT on the simple option. On the two period tariff it is 0.1143 euros off peak and 0.2045 euros outside off peak. Free market offers differ, so compare them in the Poupa Energia simulators before you sign.
What is potencia contratada on a Portuguese electricity bill?
It is the contracted power in kVA, the ceiling on what you can draw at once, and you pay for it every day. Most homes sit between 3.45 and 6.9 kVA. On the October 2026 regulated tariff, 6.9 kVA costs about 52 euros a year more than 4.6 kVA with VAT. Your supplier can change it at no charge.
Is the bi-horario tariff cheaper in Portugal?
Only if at least 37% of your consumption falls in off peak hours, based on October 2026 regulated prices. Off peak runs from 22:00 to 08:00 on the daily cycle. It suits dishwashers, washing machines and water heaters on timers, not daytime heating of a home office.
How much VAT is charged on electricity in Portugal?
Since 1 January 2025, the first 200 kWh of each 30 day period are taxed at 6% for contracts up to 6.9 kVA, or 300 kWh for families of five or more. Consumption above that pays 23%. The fixed power charge pays 23% above 3.45 kVA, and the audiovisual contribution pays 6%.
Sources
- ERSE, Tarifas e precos de eletricidade (tariff tables in force from 1 October 2026, Diretiva 4/2026), accessed .
- ERSE, Aplicacao do IVA na fatura de eletricidade (February 2025), accessed .
- ERSE, Comunicado: novos periodos horarios da eletricidade (31 July 2026), accessed .
- Poupa Energia, Potencia contratada (thirteen domestic levels, how to change it, cost effect), accessed .
- Poupa Energia, Fatura de energia (bill lines: power, energy periods, DGEG, IEC, CAV), accessed .
- Poupa Energia, Tarifas aplicadas (regulated, fixed and indexed tariffs), accessed .
- EDP, Reducao do IVA na eletricidade (200 kWh at 6% up to 6.9 kVA), accessed .
- EDP, Contribuicao audiovisual (2.85 EUR plus 6% VAT per month), accessed .
- Climate of Lisbon, IPMA 1991 to 2020 normals, Lisbon Geophysical Institute, accessed .
- Portugal Expat Hub, Utility costs in Portugal (updated 18 June 2026), accessed .
- Numbeo, Cost of Living in Lisbon (utilities for 85 m2, updated 24 September 2026), accessed .
