Chapter 03

ARTICLE 9 (Demand for concession)

01 Generation, transmission, distribution and commercialization, including the import and export of electric energy by individual or collective persons, of public interest, private and companies are subject to prior assignment of a concession which may reach one or some of the operations described in this number.

02 In the granting of the concession, the following shall be taken into consideration:

  1. the advantages to be gained through the concession must be superior to the disadvantages resulting from it in economic, social and environmental terms;
  2. the coverage of the costs and damages that the concession may cause to the third parties or on the environment must be guaranteed;  
  3. the tariffs and conditions of supply to be applied must be just and reasonable;
  4. the electric power supply must be put in the frame of the national electric energy network and/or the regional existing and planned;
  5. the length of the concession shall be set up;

f)    regarding the new construction for electric energy supply facilities, it is taken into consideration, among others, the balance between the offer and the demand, the growth of future demand, alternative supply means, demand coverage and the cost-benefit balance of energy consumption saving in their facilities and consumers installations; 

g) The competence and technical and financial capability of the candidate for concessionaire shall be proven.

03 carrying out any technical studies and other researches related to a project of electric power supply, direct or indirectly, is subject to a prior authorization.

 

ARTICLE 10 (Exemption to the concession)

01 The generation of electric energy for use and consumption by individuals and which is not for the supply to third parties is exempt from concession.

02 Without prejudice to the provisions of the previous number, any electric installation is subject to a license of establishment and exploration in the terms to be regulated.

ARTICLE 11 (Applying for concession)

01 the application for the concession for generation, transmission, distribution and commercialization of electric energy, as well as the request for importing and exporting shall be addressed to the competent body, and shall indicate the identity of the applicant as well as the narration of the request objectives and the length of the concession.

02 A entidade competente autoriza ou recusa o pedido, dentro do prazo de cento e oitenta dias a contar da data da sua recepção.

02 The competent body shall authorize or refuse the application, within one hundred and eighty days after receiving it.

03 The requirements for the concession are set by the regulation.

04 The concession and its extension are assigned by means of a public bid, in terms to be regulated.

05 The requests for concession, as well as the extensions and those of transmission shall be subject to publication and public hearings, in terms to be regulated.

 

ARTICLE 12 (Term of content of the concession)

01 The concessions are assigned, through an administrative contract, for the period set in it, and its length shall not, in any case, exceed the initial maximum term of fifty years, susceptible of renewal. 

02 The renewal of the concession is granted, provided that the following requirements are met altogether:

  1. the concessionaire must have met their duties in the terms of the concession contract;
  2. The concessionaire shall present an exploration programme and technical-economic studies which ensure better conditions for its operation.
  3. The period of renewal of the concession must be consistent with the redemption of the additional investment deadlines and with the need putting the resources utilized available for other purposes that guarantee the most social and economic benefits.

 

ARTICLE 13 (Transmission of the concession)

01 Partial or total transmission of the rights included within the concession, is subject to prior approval by the competent body, which shall take into consideration, for that purpose, the procedures recommended in article 10 of the present Law, with necessary adaptations.

02 It is applicable to the transmission dealt with in this article, the provisions in no. 3 of article 24 of this Law.

 

ARTICLE 14 (Management of the national network of electric energy transmission)

01 The management of the national network of electric energy transmission is assigned to an entity of public interest which through its technical capability ensures the operationalization, the reliability and public service expansion in electric energy supply.

02 The appointment of the entity referred to in the previous number and the applicable terms and conditions are set by the Council of Ministers’ Decree.

03 The private capital may participate in the development of the national network of electric energy transmission in the terms to be regulated.

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