EDP Shares Advance as ERSE Confirms 2026 Power Tariffs and Return Metrics

Key Moments

Regulator’s Decision Lifts EDP Shares

EDP stock gained 1% in Lisbon after the Portuguese energy regulator ERSE released its final ruling on 2026 electricity tariffs and set the key parameters for the 2026-2029 regulatory period.

The decision closes the consultation process that began with ERSE’s draft proposal published in mid-October and establishes the regulatory framework that will govern Portugal’s electricity market over the next four years.

Electricity Tariffs and Grid Access

For 2026, ERSE approved a 1.0% year-on-year increase in regulated end-user electricity tariffs within the normal low voltage segment, a category that covers residential customers and small-to-medium enterprises.

This adjustment incorporates a slight rise in grid access tariffs, which were set at €97.5/MWh, compared with €97.1/MWh in the draft proposal released in October.

Regulated Profit and Supply Margins

ERSE set regulated gross profit for electricity distribution at €1,252 million. This represents an increase of €28 million versus the draft proposal and a €121 million rise compared with 2025 levels, which include adjustments from prior years.

For last resort electricity supply, the regulator kept the figure unchanged from the draft determination, maintaining a regulated gross profit of €47 million.

Rate of Return and Regulatory Parameters

The regulator’s parameters are anchored on a nominal pre-tax rate of return of 6.70% for 2026. This figure is based on an underlying average 10-year Portuguese government yield of 3.076% for that year.

On a like-for-like basis, the approved 6.70% rate of return represents an increase of 39 basis points relative to the October draft proposal.