Portugal will allocate 3 billion euros to curb energy prices paid by companies next year through a combination of public spending and regulatory measures, the government said, Reuters reported.

Environment and Energy Minister Duarte Cordeiro told reporters that this is the biggest intervention ever in the country's energy markets and should save about 30 percent of estimated electricity rates for 2023 and 23 percent to 42 percent for gas.

Spain and Portugal capped prices for gas used for power generation in June, which helped lower consumer prices. Lisbon also allowed households and small businesses to switch to lower regulated rates from early October.

But many companies, such as those involved in tile manufacturing and other energy-intensive sectors, remain fully exposed to skyrocketing natural gas prices.

The plan is expected to take effect Jan. 1 and will require a direct transfer of 1 billion euros from this year's budget.

Cordeiro said the plan is "calibrated to counter a scenario of significant increases" in market prices for electricity and natural gas in 2023.

Under the worst-case scenario, the government predicts that market rates for electricity will roughly double to an average of 258 euros per megawatt hour in 2023, and gas prices could more than triple from the current 53.3 euros.

As a result, companies' electricity costs could jump to 6.5 billion euros in 2023 from 1.7 billion currently, and their gas costs could reach 2.7-4.9 billion euros from 745 million euros, Cordeiro said.