Brussels, 19/05/2011 (Agence Europe) - In a reasoned opinion dated 19 May, the Commission calls on Portugal to bring its national legislation on regulated end-user gas prices into line with EU law on the internal energy market (Directive 2009/73/EC whereby member states have been under an obligation since 1st July 2007 to ensure consumers have freedom of choice when choosing a gas supplier). As prices are first and foremost determined by supply and demand, state regulation of prices for end-users constitutes an obstacle for new market entrants and deprives both individuals and companies of their right to choose the best service on the market, the European Commission explains. Although regulated tariff fixing is authorised in exceptional cases (the protection of vulnerable customers, for example), this kind of measure must specifically aim at customers in the greatest need, be limited in time and ensure that European firms in this sector have equal access to national consumers, the Commission adds. It specifies that the Portuguese law still requires undertakings to supply natural gas at a regulated price for all small and medium-sized enterprises and households. This measure does not provide for any phasing-out mechanism or any regular review analysing whether such a measure is still needed. The Portuguese authorities are also urged to give the national regulatory authority the ability to act as a dispute settlement body, which can take binding decisions in the event of disputes between energy companies and consumers to ensure that consumers' interests are fully protected. Portugal has two months in which to comply with its legal obligations. If it fails to do so, it will be taken before the European Court of Justice. (E.H./transl.jl)