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Decree Law No. 76/2019


Publication: Republic Diary No. 106/2019, Series I of 2019-06-03
  • Issuer: Presidency of the Council of Ministers
  • Diploma Type: Decree Law
  • Number: 76/2019
  • Pages: 2792 - 2865

Summary in plain english

What is it?

This decree-law develops the general principles regarding the organization and operation of the national electrical system (SEN), regulating the legal scheme applicable to the exercise of the electricity production, transport, distribution and trade activities and to the organization of the electricity markets.

What is going to change? Alterations to the licencing scheme of the electricity production activity were developed:

      a) Alteration to the production license’s assignment procedure currently in force, in order to ensure, firstly, the reserve of the energy’s reception capacity in the Public Service Electrical Network (RESP) as a prior and necessary condition for the beginning of the procedure to assign a production license;

      b) Adoption of a competitive procedure, namely an electronic auction, for the cases including a claims’ competition in a certain energy reception point in the Public Service Electrical Network (RESP), detrimentally to the random drawing previously applicable;

      c) Introduction of the possibility of the shareholders to guarantee the lacking network infrastructures, bearing the derived costs;

      d) Creation of the possibility of electroproduction centres to use more than one primary source, therefore allowing a greater production based on the same infrastructure, without burdening the consumers with new investments in network infrastructures;

      e) The production of electricity from renewable energy sources, based on a single production technology, with an installed capacity up to 1 MW (Megawatt), aimed for the selling of energy to the network, now benefits from a scheme of prior registry and acquisition of an operation certificate, which is a simplified procedure carried out through an electronic platform;

      f) In the activity of low-voltage (LV) electric energy’s distribution, the responsible for the concession may now include, or not, the public lighting network in the concession’s object.

What advantages does it bring?

This decree-law promotes:

      a) A greater efficiency of the public administration and a reduction of the citizens’ charges as it avoids the complete instruction of production licenses’ assignment requests which, without a guaranteed injection point in the network, were subject to a drawing in which only a low number of requests could continue, deemed as useless all the effort with the instruction of the other requests;

      b) The assignment of an injection point in the national electrical network through an electronic auction process ensures that all assignments to be carried out allow an economic benefit for the consumers. There is no free assignment in this competitive procedure;

      c) Through the possibility of construction and payment of network infrastructures by the stakeholder producers, many projects, which were not viable due to the unavailability of energy reception in the network, may proceed without the construction of this infrastructure burdening the consumers;

      d) This legislative alteration contributes for the realization and entry into operation of electroproduction centre based on renewable sources, allowing the country to achieve its goals in this regard, based on the derived environmental benefits.

When does it enter into force?

This decree-law enters into force on the day following its publication.

Original Version

LEGAL TRANSLATOR

  • Legal translator is the translation of texts within the field of law

CONSOLIDATED LEGISLATION

Legislative consolidation integrates the various amendments and rectifications made into an original legal diploma in order to make its consultation more accessible to the citizen.