Many of us don’t realise that many companies are becoming very competitive. I recently changed my electricity supplier and saved over 30%.

I wouldn’t have been tempted by a two or three percent saving, but this was massive. Portugal is now becoming very competitive, and it’s not just electricity but also phone, insurance, gas, and the list goes on. Even better, the government is doing its best to make it easy to get the best deals, though some companies, especially the phone operators, are making it as difficult as possible.

The liberalization of the electricity sector in Portugal marks a significant turning point in the country’s energy history, reflecting broader trends of market-oriented reforms aimed at fostering competition, innovation, and sustainability. Initiated in the late 20th century, this process sought to dismantle monopolistic structures such as EDP, Portugal Telecom etc.

The market was slowly opened to private players and establishing a regulatory framework conducive to free-market conditions. Proponents argue that liberalisation has led to numerous benefits, including lower prices, improved service quality, and accelerated renewable energy development, aligning Portugal with global sustainability goals. However, critics contend that liberalization also introduces challenges such as price volatility, threats to energy security, and market monopolization.

Liberalisation worked, but not with all providers

Liberalisation has significantly increased competition within Portugal’s electricity market, resulting in lower prices for consumers. Prior to reforms, the electricity sector was largely dominated by EDP, a state-owned monopoly, which limited consumer choice and kept prices artificially high. The presence of multiple electricity providers—ranging from private companies to smaller regional players—has fostered a competitive environment that incentivizes firms to optimise their operations and attract customers.

Not all the same

Switching my electricity supplier was totally trouble and stress-free. The new company dealt with everything from cancelling my existing direct debit to switching the supply. No downtime, it was totally trouble-free and ‘invisible’. My previous supplier didn’t try to block the transfer, but they did phone and say they could improve the price I was paying them. Too late, they should have been more pro-active to stop me from considering changing. Saving over 30% on my monthly bill is a very good reason to change.

The phone companies are exactly the opposite; they will do anything to stop you changing, and not always within the provisions of the law. The government has done a very good job, principally in stopping the phone companies from keeping your phone number. Laws were passed to establish that your phone number belongs to you, not the phone company.

Are ANACOM doing their job?

They have to respect the law, but unlike the energy companies who cooperate fully, the phone companies will put up barriers. Their main tactic is to refuse the transfer of your number to a new operator. You may have a CVP number on the back of your factura, but frequently operators will refuse to allow the transfer, saying the code is not valid. They don’t give a reason, of course. You could complain to their customer services, if you can get through, good luck with that one. ANACOM, the industry watchdog who is supposed to ensure the correct behaviour of the companies, seems to have a ‘blind eye’ to many issues. Many industry observers have noted that many of ANACOM’s senior management have been drawn from the phone industry.

Credits: Unsplash; Author: nikola-johnny-mirkovic;

While there is no direct evidence of vested interests causing specific outcomes, concerns about them can arise from the tension between the need for competition and the influence of incumbent operators, like MEO and NOS. ANACOM is responsible for regulating these markets to promote competition, which can sometimes involve imposing obligations on dominant operators to ensure fairness. This situation creates a potential conflict where established companies may try to influence the regulatory process, but ANACOM is mandated by the European Commission to ensure fair competition. There is a complaint process here.

Not just phones and electricity

Don’t simply renew your insurance and accept what you already pay. Insurance companies are getting very competitive, but if you don’t challenge, you won’t get the best offers. Search for offers, they are all out there. Before you change to a new company, show your insurer an offer you like and demand they give you the same or you will change. That normally gets their attention. Have a look at mortgage offers as well.

Don’t be a submissive client

Challenge and save! My substantial energy savings were easy to find. Social media will bombard you with offers if you show the minimum of interest. Click through to one and just wait. You can also search on Google (or any search engine), be specific on what you want and specify its in Portugal. You will probably also be directed to a price comparison website, yes, they do exist now in Portugal.

Bear in mind, they may have ‘loyalties’ to a particular company. Phone a couple of companies direct, they are very helpful, they want your business. Energy companies will want to see your factura from your existing supplier, then they can quote realistically.

Portugal now supports competition

The government have made great strides in the last few years to open up free competition in many areas. Now its up to you, but there are substantial savings out there and they are not hard to find.

Disclaimer: The views expressed on this page are those of the author and not of The Portugal News.