ERSE announces electricity tariffs for 2022 and parameters for 2022-2025 | edp.com

Lisbon, December 15th, 2021:The Portuguese Electricity Regulator (“ERSE”) released today the final document regarding the Tariffs and prices for electricity in 2022 and the parameters for the regulatory period 2022-25 in Portugal. The final document introduces the following changes, when compared to the proposal presented by ERSE on last October 15th, and disclosed to the market by EDP - Energias de Portugal, S.A. (“EDP”):

1. The regulated gross profit for the activity of electricity distribution (operated by our subsidiary E-Redes) increased ~€15m, to €1,029 million for 2022 (excluding previous year adjustments), essentially due to the increase of the preliminary rate of return (“RoR”) which was set at 4.7%, before taxes, from the proposed 4.3%.  
2. The rate in the period 2022-25 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 and a cap of 4% and 7.3%, respectively. Note that the preliminary RoR of 4.7% reflects an underlying average of 0.302% 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.

This information is disclosed pursuant to the terms and for the purposes of the article 17 of Regulation (EU) No. 596/2014 of the European Parliament and of the Council and of article 248-A of the Portuguese Securities code.

EDP – Energias de Portugal. S.A.