ERSE announces electricity tariffs in 2026 and parameters for 2026-2029

Lisbon, December 15^th 2025: The Portuguese Electricity Regulator (“ERSE”) released today the final document regarding electricity tariffs and prices in for 2026 and parameters for the 2026-2029 regulatory period in Portugal. The final document introduces the following changes, when compared to the proposal presented by ERSE last October 15^th, and disclosed to the market by EDP, S.A (“EDP”):

1. Regulated gross profit for the activity of electricity distribution, operated by our subsidiary E-Redes, is €1,252 million in 2026 (including previous years’ adjustments), representing an increase of €28 million when compared to the announced in October (+€121 million versus 2025), essentially due to the increase of the rate of return (“RoR”).
2. The RoR is set at 6.70%, before taxes, representing an increase when compared to the 6.33% in October’s proposal and with the reference RoR of the current regulatory period of 4.70%. The definitive rate in the period 2026-2029 will be set for year t, according to the daily average of the 10 year Portuguese government bond yield between October of year t-1 and September of year t – this mechanism foresees a floor of 5.90% and a cap of 8.90%. Note that the RoR of 6.70% reflects an underlying average of 3.076% for the 10 year Portuguese government bond yield and that each 1% change in Portuguese government bond yield implies a 0.3% change in the RoR.
3. For the last resort electricity supply (operated by SU Electricidade), ERSE proposed a regulated gross profit of €47 million in 2026, aligned with October’s proposal.
4. An increase of 1.0% in end users’ regulated electricity tariffs for 2026 in the normal low voltage (NLV) segment, compared to the year 2025 average, similar to the increase announced in October. Which includes residentials and SMEs electricity consumers. This reflects the increase in grid access tariffs to 97.5€/MWh versus 97.1€/MWh in October’s proposal.
5. The amount of tariff deficit of the electricity system in Portugal is expected to continue to decrease in 2026 to €1,081m, not incorporating the creation of any additional deferral, aligned with October’s proposal.

This information is disclosed pursuant to the terms and for the purposes of article 17 of Regulation (EU) No. 596/2014 of the European Parliament and of the Council.

EDP, S.A.