Summary

The Portuguese Government has approved Resolution 63/2003 setting out the goals and relevant measures for the reorganisation of the Portuguese energy sector.

On 28 April 2003, the Portuguese Government adopted Resolution 63/2003, setting out the objectives of the reorganisation of the energy sector and the measures to be adopted:

(a) reduction of the dependence from primary energy sources located outside Portugal, mainly through the enhancement of hydroelectric plants and the incentive to the use of renewable energy sources;

(b) diversification of the energy sources located outside Portugal, in particular primary energy sources such as gas, hydric and Aeolian, by establishing the construction of a natural liquid gas reception terminal at Sines, and reinforcing the electrical interconnection between Portugal and Spain and Spain and France;

(c) maintenance of the legal fuel reserves and increase of the efficiency in their management, for which purpose the Government shall incorporate a new State controlled company, Empresa de Gestão de Reservas Estratégicas (EGREP);

(d) encouragement of sustainable development by adopting measures aiming at (i) the compliance with the Kyoto Protocol; (ii) the adoption and full integration within the European system of polluting emissions; and (iii) the promotion of a more rational energy consumption;

(e) increase of the Portuguese energy market competitiveness through its liberalisation, the reduction of energy tariffs, the improvement of the quality service and the creation of the Iberian electricity market (MIBEL) until 2006, integrated in the context of an European energy market, which will require a satisfactory power transport capacity, the creation of an Iberian Market Operator (OMI), the termination of the power purchase agreements (CAEs) and the establishment of the compensation mechanism, as well as the harmonisation of power tariffs.

With a view to increase competitiveness in the Portuguese energy market, the Government plans to liberalise the natural gas sector from 2008 until 2012 and to promote the unbundling of the transportation and commercialisation activities, splitting the high-pressure transmission grid of other commercial activities.

© Macedo Vitorino e Associados – May 2003

This information is provided for general purposes only and does not constitute professional advice. If you have any question on a matter of Portuguese law you should contact a lawyer registered to practice law in Portugal. If you are a client of Macedo Vitorino e Associados, you may contact us directly at mva@macedovitorino.com or your usual contact partner