The Energy Services Regulatory Authority (ERSE) failed REN’s proposal to invest 472 million euros in the gas network between 2026 and 2035, defending a more restrained plan to avoid increases in tariffs for families and companies.
In its opinion on the proposal for the Ten-Year Indicative Development and Investment Plan (PDIRG 2025) of REN Gasodutos, ERSE proposes an alternative scenario that reduces the investment planned for the first five-year period, from 163.2 million euros to 92.7 million, “seeking to reflect the comments received in public consultation and the uncertainty regarding the evolution of future demand for gas and the supply of decarbonized gases”, such as the biomethane.
According to the regulator, this reduction allows “to ensure zero or reduced average annual tariff impacts (+0.0 percentage points (pp) to +0.1 pp)” on sales prices to end customers between 2025 and 2030.
ERSE justifies the downward revision with the objective of “ensuring that the PDIRG 2025, to be implemented, presents investment levels, between 2026 and 2028, of the same order of magnitude as those that entered into exploration in the last three years (2022 to 2024)”.
REN may or may not review its proposal before submitting it to the Government, which has the final say on investments in the gas network, as the infrastructure is concessioned by the State.
Furthermore, as ERSE highlights in the opinion released on Friday night, “the assessment of the next PDIRG, to be presented in 2027, will represent a new opportunity to revisit the evolution of investment to be made, particularly between 2028 and 2030”.
The regulator also conditions the completion of projects to adapt the Carriço underground transport network and storage to hydrogen mixtures of up to 10%, requiring “guarantee of their viability in terms of interoperability with consumers and operators of adjacent networks”.
The Carriço underground storage, located in the municipality of Pombal, is the main underground natural gas storage infrastructure in Portugal.
Furthermore, ERSE recommends that REN “reschedule some basic projects of the three infrastructures and transversal investments, foreseeing only those that are considered effectively urgent, urgent and duly justified”.
The opinion also highlights the importance of investments in “security telecommunications networks, particularly regarding cybersecurity issues”, as well as initiatives that contribute to the decarbonization of the natural gas sector.
ERSE considers that this review “reflects a balance between the increase in amounts in base projects, which is recognized as necessary”, and the need to ensure that the sector “remains competitive and sustainable, over time, for all those who will continue to need gas for their consumption and their production process”.