Government's E-Lar Program May Increase Energy Bills, Deco Proteste Warns
The Portuguese government has announced the 'E-Lar' program, a strategic initiative aimed at promoting energy efficiency in households by subsidizing the replacement of gas appliances with electric alternatives. However, Deco Proteste, the country's foremost consumer defense organization, issued a statement on Monday expressing significant concerns about the policy's design and potential negative outcomes for consumers. The policy's objective is to accelerate the transition to cleaner energy sources in residential properties across Portugal.
The implementation strategy for the E-Lar program, with applications opening on September 30, involves providing financial vouchers to homeowners. However, Deco Proteste argues that the program's structure is flawed and could paradoxically lead to higher energy costs. The organization stated that the policy 'may perpetuate situations of energy vulnerability, instead of solving them,' particularly if not paired with broader home improvements. The targeted outcome of lower energy consumption may not be achieved without these complementary measures.
A key issue identified affects a broad population group of homeowners: the necessity of increasing a home's 'potência contratada,' or contracted electrical power, to support the new appliances. This upgrade results in a higher fixed monthly charge on electricity bills. Deco Proteste calculates that for a household switching from a gas water heater to the subsidized electric storage heater, the annual bill could rise by over €360. This financial burden is a significant concern for the budget allocation of many families.
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Furthermore, the program's regulations exclude what Deco Proteste considers one of the most efficient technologies: heat pumps. The analysis shows that a heat pump could generate annual savings of approximately €350 compared to a traditional butane gas heater. The government's decision to omit this technology has drawn criticism, as it limits consumer choice and fails to promote the best available options. This exclusion is a central point of the stakeholder consultation feedback provided by Deco to the government.
The expected economic and social impact of the program is now under scrutiny. Deco warns that 'without structural improvements, such as thermal insulation, there is a risk that families will see their bills increase.' Many older homes in Portugal are not prepared for full electrification without significant and costly upgrades to their internal wiring, expenses that are not covered by the E-Lar support. This could create unforeseen financial barriers for many participants.
Deco Proteste has also called for a simplification of the application process and a wider, more competitive network of suppliers where the vouchers can be used. The organization is concerned that a limited network could lead to the exclusion of families in less populated areas. Safety is another critical point, with the agency highlighting the need for clear regulations regarding the responsibility and cost of securely sealing gas outlets after appliances are removed. The monitoring and evaluation frameworks for the program will need to address these potential shortcomings to ensure its success. Understand policy impacts on your Portugal property plans at realestate-lisbon.com.