PRG Auctions

Forward auctions for electricity production with a guaranteed remuneration scheme or other subsidized remuneration support schemes by the last resort aggregator.

The Commercial Relations Regulation for the Electricity and Gas Sectors (RRC), approved by Regulation No. 827/2023 of July 28, establishes contracting mechanisms initiated or governed by procedural rules approved by the Energy Services Regulatory Authority (ERSE). These mechanisms are intended for the sale of electricity acquired by the last resort aggregator (AUR), under the modalities set out in Article 281(1) of the RRC.

Ensuring the transparent and stable availability of electricity to suppliers in the free market is a fundamental condition for the development of the market itself and for protecting consumers' interests regarding the diversity of choices and competitiveness of available offers. Consequently, it is essential to provide market participants with energy volumes whose overall cost is borne by all consumers, promoting equitable participation conditions between agents with and without electricity production assets in Portugal.

Regulation No. 951/2021 of November 2, which approved exceptional measures for the National Electricity System and the National Gas System, introduced in Section III an extraordinary energy contracting mechanism through an auction system. This aimed to secure energy supply for suppliers and consumers via bilateral physical contracting, with the settlement of awarded contracts subject to specific rules. The goal was to encourage market participation while reducing procurement costs related to risk management and guarantees arising from non-payment of obligations associated with auctioned volumes.

Directive No. 4/2025 establishes the rules for conducting forward auctions for electricity production under a guaranteed remuneration scheme or other subsidized remuneration support schemes by the AUR. These auctions, structured as forward products with various maturities and settlement conditions, adhere to the principles of transparency, cost minimization, and liquidity promotion in organized markets, as enshrined in the RRC. This directive also considers the evolving regulatory framework of Directive No. 5/2011 of November 24, as amended by Directive No. 11/2019 of May 6, and Regulation No. 951/2021 of November 2.

For more information, please visit the ERSE website.