IEA cautiously backs Portugal’s efforts to build a financially sustainable energy system by 2020

Portugal must maintain its efforts to deliver a financially sustainable energy system, the International Energy Agency (IEA) said today as it also urged the Portuguese government to build stronger energy links between the Iberian Peninsula and France. Speaking at the launch of an IEA review of Portuguese energy policies, IEA Executive Director Fatih Birol encouraged Portugal to maintain efforts to resolve the so-called tariff deficit, or defice tarifario, caused by past imbalances between the electricity system’s regulated costs and revenues from regulated tariffs. “Portugal has made some difficult choices,” Dr. Birol commented, “but to maintain investor confidence, Portugal must also closely follow the principles of transparency, predictability and certainty if the country wishes to continue to remain attractive to further investment in the energy sector.” Eliminating the tariff debt by 2020 is a significant challenge, the IEA report adds, but Portugal must remain on the path towards a financially sustainable energy system. ….