The Energy Services Regulatory Entity (ERSE) is responsible for setting electricity sales tariffs for consumers in Madeira. The Electricity Company of Madeira (EEM) provides financial and operational data to the regulator but lacks autonomy in deciding customer prices.
Annually, ERSE calculates "allowed revenues," the amount deemed necessary to cover the company's costs, from energy acquisition to distribution. For 2026, these revenues were set at 238.7 million euros. Investments like the new wind turbines in Paúl da Serra are considered in the regulatory process but are not directly added to consumer bills in the year they are made.
A national tariff convergence mechanism helps mitigate the extra cost of producing and distributing electricity in an isolated island grid. In 2026, approximately 76.9 million euros of this difference will be covered by this mechanism, preventing the necessary tariff variation to cover EEM's recognized costs from being 48.2%, instead of the approved 0.4%.
