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MOTION FOR RESOLUTION No. 26 /X

Considering that at the XX Luso-Espanhola Summit, held on October 1, 2004,

in Santiago de Compostela, the Minister of Economic Activities and Labour of

Portugal and the Minister of Industry, Trade and Tourism of Spain signed a

agreement laying down the conditions for the realization of the Iberian Market of

Electricity (MIBEL);

Aware that it will be within reach, of the Portuguese and Spanish companies, a

electric power term market;

Recognizing that a single market for electricity, at the Iberian level, constitutes a

important milestone of the process of integrating the electrical systems of Portugal and

Spain and the construction of the Internal Energy Market in the European Union;

Thus:

Under the terms of the paragraph d) of Article 197 (1) of the Constitution, the Government presents to the

Assembly of the Republic the following motion for a resolution:

Approves the Agreement between the Portuguese Republic and the Kingdom of Spain for the

Constitution of an Iberian Energy Market Electrical, signed in Santiago de

Compostela, on October 1, 2004, the text of which, in the authenticated versions in the languages

Portuguese and Spanish, it publishes in annex.

Seen and approved in Council of Ministers of November 17, 2005

The Prime Minister

The Minister of the Presidency

The Minister of Parliamentary Affairs

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Agreement between the Portuguese Republic and the Kingdom of Spain on the Constitution

of an Iberian Electrical Energy Market

The Portuguese Republic and the Kingdom of Spain, henceforth designated "the Parties",

Manifesting, in the framework of cooperation between the two countries their intention to move forward

for the realization of the Internal Energy Market;

Pursuing cooperation, initiated in 1998, among Public Administrations

Portuguese and Spanish to progressively overcome the existing obstacles and

Privileging the integration of the respective electrical systems;

Having present the Memorandum of the Agreement concluded on July 29, 1998 by the

Minister of Economy of Portugal and the Minister of Industry and Energy of Spain

for cooperation on electric energy; the Protocol of Collaboration between the

Spanish And Portuguese Administrations for the Creation of the Iberian Market of

Electricity, signed in Madrid, on November 14, 2001, by the Minister of

Economy of Portugal and the First Deputy Minister of the Government and Minister of the

Economy of the Kingdom of Spain, where the conditions for the creation of the

Iberian Electricity Market; as well as the Memorandum of Understanding signed

in the Figueira da Foz, November 8, 2003, in the framework of the nineteenth Luso Summit-

Spanish, in which the Parties, represented by the same signatories, set the

timetable for the realization of the Iberian Electricity Market;

Aware of the mutual benefits resulting from the creation of a market of

electricity common to the Parties, to be called the Iberian Electricity Market, in the

scope of a process for the integration of the electrical systems of the Parties;

Convinced that the creation of an Iberian Electricity Market will constitute a

milestone in the construction of the Internal Energy Market in the European Union and which will allow

speed up the process of practical application of the provisions of the Directive 2003 /54/CE of the

European Parliament and of the Council of June 26, 2003 on common standards for

the Internal Electricity Market, favoring exchange and competition between

the companies in this sector;

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Considering that the integration of both electrical systems will be of benefit to the

consumers of the two countries and which should allow market access to all the

participants in conditions of equality, transparency and objectivity and in full

respect of applicable Community law;

Decided to create a stable legal framework, which allows the operators of the systems

electrical of the Parties to develop their activity throughout the Iberian Peninsula;

Taking into account that both countries signed on January 20, 2004 in Lisbon a

Agreement for the Constitution of an Iberian Electrical Energy Market, which was

applied for interim title between the Parties since April 22, 2004, having not entered

in force;

Taking into account that the practice resulting from the application on a provisional basis of the said

Agreement revealed the need to review its legal regime and the obligations in it

contained in such a way as to allow for an effective realization of the Iberian Energy Market

Electrical, in order to suit them to the needs of both countries and to allow

pursuit of the purposes set out above;

They consider it necessary to conclude a new Agreement and

They agree on the following:

Part I

General Provisions

Article 1º

Subject

1. The object of this Agreement shall be the creation and development of a market of

electricity common to the Parties, called the Iberian Power of Electrical Power Market,

henceforth designated "MIBEL", as a milestone of a process of integration of the

electrical systems of both countries.

2. MIBEL is formed by the set of the organized and unorganised markets

in which transactions or contracts of electrical energy are carried out and are denied

financial instruments that have as a reference this same energy, as well as

by others that come to be agreed by the Parties.

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3. The creation of an Iberian Electrical Energy Market implies the recognition of

a single market of electricity by both Parties, in which all agents

will have equality of rights and obligations.

4. Both Parties shall be obliged to develop and modify, in a coordinated manner, the

necessary internal legislation and regulation, to enable the operation of the

MIBEL.

5. MIBEL will start its operation before June 30, 2005, with the free and

equal access of the entities of the two Parties to the markets.

6. With the conclusion of this Agreement, the national Public Administrations of

each of the Parties undertake to comply with the obligations arising from the

existence of an Iberian Electrical Energy Market.

Article 2º

Guiding principles

1. The functioning of MIBEL should be based on the principles of transparency, free

competition, objectivity and liquidity, self-financing and self-organization

of the markets.

2. The principle of self-financing of markets, referred to in the preceding paragraph,

is to be applied without prejudice to an initial period of transition, fixed by the

Parties, in which the financing of the Portuguese Iberian Polo Market Operator

(OMIP) and the Operator of the Iberian Spanish Polo Market (OMIE), the one that refers to the

article 4, it can be complemented by the tariffs.

3. The principle of self-organisation shall be applied without prejudice to a suitable model

of authorization and supervision.

4. The Parties shall promote, by means of mechanisms drawn up for such effect, the

competition among MIBEL entities in a manner that is fostered by liquidity

of the same.

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Article 3º

Entities

1. Stay subject to the rights and obligations resulting from the creation of the MIBEL all the

entities acting on the electrical market of both Parties, as well as any

another entity which, directly or indirectly, intervenes in the electrical system of

each of the countries.

2. The Parties consider entities, for the purposes of their performance at MIBEL, the

following:

a) Electrical Energy Producers, natural or legal persons, whose function

is to produce electrical energy, as well as to build, operate and maintain the power plants

production, both for own consumption and for consumption by third parties;

b) Those who proceed to integration in the transport and distribution networks

national energy systems proceeding from other external systems upon their

acquisition to third countries;

c) The managing societies of the organised markets and, once created, the Operator

of the Iberian Market (IMO);

d) the system operators of each of the Parties;

e) Regulated marketers or suppliers of last resort, in the terms

in which they are specified in Directive 2003 /54/CE of the European Parliament and of the

Advice on common standards for the internal electricity market;

f) The marketers, legal persons who, by acheing to the transport networks or

distribution, have as a function the sale of electrical energy to consumers or

to other entities of the system;

g) The end consumers, natural or legal persons who purchase energy

for your own consumption;

h) Agents acting on account of other entities of the MIBEL, according to

the legal standards that will come to them;

i) Agents who negotiate financial instruments on the markets of MIBEL;

j) Any other agents who define themselves by agreement of the Parties.

Part II

Specific Provisions

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Article 4º

Creation of an Iberian Market Operator

1. The Parties shall promote the establishment of an Iberian Market Operator (IMO), which

will take over the functions of the Portuguese Iberian Polo Market Operator (OMIP) and the

Operator of the Iberian polo market (OMIE).

2. OMIP will act as the managing entity of the market on time and the OMIE as

managing entity of the daily market, upon prior fulfilment, to the effect, of the

legislation beholstered in the Party on whose territory they have their seat.

3. Until the creation of the IMO, there will be a transitional period, during which time OMIP and OMIE

will be considered as entities of the electrical sector.

4. During the transitional period, indicated in the preceding paragraph, the following will take place

operations:

a) Within the maximum period of one year counted from the commissioning of the

MIBEL, market management companies should set a limit of

share of shareholders, so that no shareholder posts more than 5%

of the capital of none of them;

b) At the same time, the requirement of none of the operators should be met

of system having a share of more than 3% in the managing companies of

market;

c) Up to two years after the commissioning of MIBEL, OMIP and OMIE

should integrate with a view to the constitution of a single operator, the Operator

of Iberian Market (OMI).

5. After the transitional period referred to in the preceding paragraph, no shareholder may

own more than 5% of the capital of no market-managing society and the

entities of the electrical sector, as a whole, will not be able to own more than 40% of the

same.

6. After the transitional period referred to in paragraph 4, none of the system operators

may have a membership of more than 3% in no holding company of

market.

7. The Parties shall take the necessary measures to enable the markets to self-

finance at the end of a transitional period to be agreed between them, not less than two

years. During this transitional period, the financing of the markets could be

complemented by the tariffs.

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Article 5º

System Operation

1. System Operators of each of the Parties shall be the responsible for the management

system technique and are for the purpose of ensuring the continuity and safety of the

supply of electrical energy, through the management of the adjustments services of the

system.

2. The roles and mechanisms of coordination between System Operators of each

one of the Parties shall establish itself by agreement between both.

3. System Operators will in no case be able to carry out operations of

marketing of electrical energy, without prejudice to a transitional period to

waking up by both Parties.

4. Within the scope of the preceding paragraph, and within a maximum of one year after entry into

operation of the MIBEL, the National Electrical Network (REN) and the Electrical Network of

Spain (REE) will make a proposal to the respective Governments of a solution

definitive for the historical energy contracts of which they are holders.

Article 6º

Electric power contracting markets in MIBEL

1. The organised markets of the MIBEL, referred to in Article 1 (2), and the

your form of settlement will be as follows:

a) Term markets, which comprise transactions referring to blocks of

energy with subsequent delivery to the next day of hiring, liquidation wants

by physical delivery, either by differences;

b) Daily markets, which comprise transactions referring to blocks of

energy with delivery on the day following that of contracting, settlement

necessarily by physical delivery;

c) Intraday market, of liquidation necessarily by physical delivery.

2. The unorganised markets, referred to in Article 1 (2), are

compounds by bilateral contracts between MIBEL entities, of settlement both

by physical delivery as per differences.

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3. The hiring of the system adjustment services on the day itself can be carried out

through market mechanisms, to be defined by each system operator, and its

settlement will necessarily be for physical delivery.

Article 7º

Regime of markets and liquidity

1. To the markets referred to in the preceding article shall apply to the legislation of the Party in which

constitute themselves.

2. The daily and timeframe markets should adapt to the provisions of financial legislation

that is applicable to them.

3. OMIE will make the management of the daily market in exclusivity regime, only

during a transitional period whose deadline will be defined by the Parties.

4. The Parties undertake to establish:

a) During a transitional period to be agreed between them, a minimum percentage

of energy that the regulated marketers will have to acquire in the market a

deadline managed by the OMIP as well as mechanisms that promote a management

efficient commercial business by market management companies;

(b) mechanisms that foster the vertical disintegration of companies, such as

virtual or other auctions.

5. The contracting of system tuning services should work in regime of

exclusivity.

6. In the legal normatives to be developed under of this Agreement shall define itself to

form of participation of each Party in the authorization procedures of markets

that the other Party realize.

Article 8º

Economic management of the interconnection between Portugal and Spain

The Parties shall agree on market mechanisms to allocate the interconnection capacity

between the Portuguese and Spanish systems.

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Article 9º

Fees

1. The Parties, upon the arrangements they deem necessary, will tend to the

harmonisation of their tariff structures.

2. The tariff harmonization process will be based on the principles of the additivity

tariff, transparency, uniformity, and should reflect the costs really

incurred in the supply of electrical energy, as well as taking as a reference

the prices of the markets defined in Article 6º.

3. Within the maximum period of one year counted from the commissioning of the

MIBEL, the Parties will develop a plan that should be subject to an opinion of the

Board of Regulators, with a view to the implementation of tariff harmonisation.

Part III

Mechanisms for regulation, consultation, supervision and management

Article 10º

Supervision

1. Are supervisory entities of MIBEL, on the part of Portugal, the Entity

Regulator of Energy Services (ERSE) and the Securities Markets Commission

Securities (CMVM), and on the part of Spain, the National Energy Commission

(CNE) and the National Securities Commission (CNMV).

2. Supervision of the markets defined in the framework of MIBEL shall be carried out by the

supervisory entities of the Party in which they constitute themselves, according to the

respective legislation for this matter.

3. Supervision entities of the markets shall perform their duties in the

MIBEL in a coordinated manner.

4. The Parties shall promote the conclusion of Memorandums of Understanding between the

competent supervisory authorities, in the scope of MIBEL.

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Article 11º

Board of Regulators

1. The Parties shall carry out the establishment of a Board of Regulators, integrated by

representatives from ERSE, CNE, CMVM and the CNVM.

2. The Board of Regulators shall have the following functions:

a) Follow up on the application and development of MIBEL;

b) To give an obligatory and non-binding prior opinion to the application of sanctions by

very serious offences, within the scope of MIBEL, to be agreed between the Parties;

c) Coordination of the performance of its members in the exercise of their competences

of supervision of MIBEL;

d) Issue of coordinated opinions on proposals for regulation of the

functioning of the MIBEL or its modification, and on the regulations

proposed by the managing companies of the markets that are constituted;

e) Any others that are agreed by the Parties.

Article 12º

Constitution of a Committee of Market Agents

The managing companies will be able to create, for the respective markets, Committees of

Market Officers, as advisory bodies.

Article 13º

Committee on Technical and Economic Management of MIBEL

The Parties shall establish a Technical and Economic Management Committee of MIBEL, integrated by

representatives of the operators of systems and markets, to manage, in a way

adequate, the communication and the flow of information required among the various

operators, as well as to facilitate the day-to-day management of their activities.

Part IV

Authorization and Enrollment of Agents and Supply Assurance

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Article 14º

Administrative Procedures for Authorization and Enrollment of Agents

1. The recognition of the quality of agent by one of the Parties means the

automatic recognition by the other.

2. The administrative procedures for authorization and enrolment of the agents, for the

exercise of the different activities in Portugal and in Spain, should be

harmonized in accordance with the principle of reciprocity.

Article 15º

Guarantee of Supply

1. Within the operation of the MIBEL, the Parties undertake to act

second the principle of solidarity, which must be exercised in the event of an emergency,

particularly when the guarantee of energy supply is concerned in the

space of MIBEL.

2. Without prejudice to the established in the preceding paragraph, each of the Parties may, in

emergency case in your space, take the appropriate measures to ensure your

energy supply.

3. Of the adoption of these measures should be, with the greatest brevity and if possible before

of the beginning of the implementation of the same, informed the national authority of the other Party.

4. acting in the event of an emergency, which should obey the principle of

solidarity, under the terms of number 1, will be the subject of additional protocols.

Part V

Offences, Santions and Competent Jurisdiction

Article 16º

Infringements and sanctions

1. The offences relating to the violation of the MIBEL rules and their sanctions will be

defined in the internal legislation of each of the Parties and within the scope of paragraph 4 of the

article 1º of this Agreement, committing the same to respect the following:

a) offences shall be classified in very serious, serious and light;

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b) Establishment of fines provided to the type of offence, up to the amount

maximum of 3000000 billion euros;

c) Mechanisms of exchange of information required for instruction and

resolution of the infringement proceedings, albeit subject to obligations of

professional secret that, in each case, falls on the authorities

competent;

d) Preview, as a consequence of the infringement, the possibility of revocation or

suspension of administrative authorization.

2. The competent authorities of each of the Parties shall inform the remaining

supervisory authorities of the MIBEL of the sanctions applied, notably for

effects of the application of point (d) of the preceding paragraph.

Article 17º

Sanctionatory procedure

1. The instruction of the infringement proceedings and the resolution of the same shall fit the

organisms to which each Party has assigned that competence, according to the

your internal legislation.

2. The competence referred to in the preceding paragraph shall be determined by the application of the

criterion of the place where the offence was committed.

3. If it is not possible to determine the place where the offence has been committed, apply-

if-at the discretion of the nationality of the subject infringer, if his / her nationality is

Portuguese or Spanish.

4. Nother cases, shall apply at the discretion of the place where the offender subject has obtained,

first, authorization for the exercise of an activity in the scope of this

market.

Article 18º

Competent Jurisdiction

The competent jurisdiction to know about the resources of administrative acts delivered

by the competent authorities in the framework of the implementation of the MIBEL standards will be

determined by the nationality of the authority that emanated from the act of which it is resorted.

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Part VI

Final Provisions

Article 19º

Follow-up Committee

1. For the resolution of differences concerning the interpretation and application of the present

Agreement, consists of a Follow-up Commission, composed of two

representatives from each of the Parties.

2. Decisions shall be taken by a majority and within a maximum of six months, counted

from the date on which the divergence was raised, unless an extension agreed by the

same.

3. The Commission shall adopt its regulation of operation.

Article 20º

Additional Protocols

The Parties will be able to conclude Additional Protocols to this Agreement.

Article 21º

Entry into force and transitional arrangements

1. This Agreement shall enter into force on the date of receipt of the last notification of

that the domestic law requirements of both Parties have been complied with

to the effect.

2. Until the date of entry into force of this Agreement, the Parties shall continue to apply the

tentative title the Agreement between the Portuguese Republic and the Kingdom of Spain for

the Constitution of an Iberian Electrical Energy Market, signed in Lisbon a

January 20, 2004.

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Article 22º

Duration and Denpronunciation

This Agreement shall apply for a period of two years, renewable automatically

for equal periods, unless any of the Parties denounce it, in writing and by way of

diplomatic, with a minimum advance of six months.

Article 23º

Review

1. The present Agreement may be reviewed by agreement between the Parties.

2. The amendments shall enter into force pursuant to Art. 21, paragraph 1.

Article 24º

Community Law

This Agreement shall be interpreted and implemented in accordance with the standards of

applicable community law.

In faith of what, the undersigned, being duly authorized, have signed the

present Agreement.

Made in Santiago de Compostela, on the first day of the month of October 2004, in the

Portuguese and Spanish languages, making both texts equally authentic.

The Minister of Activities

Economic and Labour of the

Portuguese Republic

The Minister of Industry,

Trade and Tourism of the Kingdom

from Spain

Alvaro Roque de Pinho Bissaya

Barreto

Jose Montilla Aguilera

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CONVENIO INTERNATIONAL CONCERNING LA CONSTITUCIÓN DE UN

IBERIAN MARKET OF LA ENERGÍA ELECTRIC BETWEEN LA REPUBLIC

PORTUGUESE Y EL KINGDOM DE ESPAÑA

La Republic Portuguese y el Kingdom de España, en adelante denominations " las

Parts ";

Manifesting, en el marco de la cooperación between both countries su Voluntad de

avanzar en la conformación del Mercado Interior de la Energía;

As continuación de la cooperación initiated en 1998 by las Administraciones

Public española y Portuguese to, progressively, eliminate hurdles

existing y favors la integración de los respective electrical systems;

Teniendo present el Memorandum of Acuerdo firming el 29 julio of 1998 by el

Minister of Economía de Portugal y el Minister of Industria y Energía de España for

la cooperación en materia de energía electric; el Protocol de cooperación between las

Administraciones Portuguese y española for la creación del Mercado Iberian de la

electricidad, firmed en Madrid el 14 de noviembre of 2001, by el Minister de

Economía de Portugal y by el Vicepresident primero del Gobierno y Minister de

Economía del Kingdom de España, según el cual se stabilecen las condiciones for la

creación del Mercado Iberian de Energía Electrical; así as el Memorandum of

Entendimiento firmed en Figueira da Foz el 8 de noviembre de 2003 en el marco de la

XIX Cumbre luso española, en la cual las Parties, represented by them Ministers,

fijaron el calendario for la concreción del Mercado Iberian de la Energía Electrical;

Aware of los mutuos beneficios that behaves la creación de un market de la

electricidad común a las Parts en el marco de un proceso de integración de los systems

electric of both;

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Convinced that la creación de un Mercado Iberian de Energía Electrical will constitute

un hito en la construcción del Mercado Interior de la Energía en la Unión europea y que

will allow to accelerate el proceso de applicación práctica de las disposiciones contenids en la

Directive 2003 /54/CE del Parliament Europeo y del Consejo, from 26 junio of 2003,

about communes norms for el Mercado Interior de la Electricidad, favoring them

intercambios y la competencia among las companies in this sector;

Considering that la integración of both electrical systems will be a beneficiary to them

consumers of los from the y countries that will deberate allow to accede al market to all of them

participants en condiciones de equaldad, transparencia y objetividad y con full

respect del derecho comunitario applicable;

Decided to create un legal landmark stable that allows them to be able to

electric systems of las Parties desarrollen su actividad en whole la Peninsula Iberian;

Teniendo en cuenta that both countries firmaron el 20 de enero de 2004 en Lisboa un

Convenio by el que acuerda la constitución de un Iberian market de la energía

electric between la Republic Portuguese y el Kingdom de España, which ha been the object of

applicación provisional among las Parties since el April 22, 2004 y that in the ha entered

en force;

Teniendo en cuenta que la práctica derivative de la applicación provisional del cited

Convenio ha puesto de manifiesto la necesidad de revising el régimen legal y las las

obligaciones contends en el mismo to allow la realización effective del MIBEL, the

fin de adecuarlas to las necesities of both countries y al logro effective de los objectives

arriba enunciated;

Consider necesario celebrate un nuevo Convenio y

ACUERDAN LO SIGUIENTE:

Part I

Disposiciones generales

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Artículo 1.-Object

1. El object del present Convenio es la creación y desarrollo de un market de la

electricidad común a las Parties, con la denominación de Iberico de la

Energía Electric, en adelante named "MIBEL", en el marco de un proceso de

integración de los electrical systems of both countries.

2. El MIBEL is formed by el suite de los markets organized y no

organized en los que realizan transacs the energía electric y en contracts

them that if trading instruments financier that toman as a referent dicha

energía, así as per otros that sean agreed by las Parties.

3. La creación de un Mercado Iberian de la Energía Electrical implies el

reconocimiento by las Parts of un single market de la electricidad, en el cual

all los agents tendrán equaldad de derechos y obligaciones.

4. Las Parties if obligated to dearrollar y modify, in a coordinated manner, la legislación y

reglamentación inner necesaria to allow el funcamiento del MIBEL.

5. El MIBEL comenzy su funcamiento before del 30 de junio de 2005, con el libre

and equal acceso of los agents from both Parties to the markets.

6. Con la firma del present Convenio, las Administraciones Public nationales de

each una de las Parties commit to cumplir con las obligaciones deriving from

la existencia de un Mercado Iberian de la Energía Electrical.

Artículo 2: Principals advisors

1. El funcamiento del MIBEL whether basing en los principios de transparencia, libre

competency, objectividad y en el de liquidity, autofinanciación y autoorganización de

los markets.

2. El principio de autofinanciación de los markets incluido en el punto Previous will be

applied sin perjuicio de un periodo initial transitorio, figed by las Parties, en el

que la financiación del Operador del Mercado Iberian Polo Portués (OMIP) y del Mercado

Operator del Mercado Iberian Polo Español (OMIE), to los que se refiere el artículo

4, pueda be complemented by las tariffs.

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3. El principio de autoorganización will be applied sin perjuicio de un adecuado model

of authorizing authorizing y supervisión.

4. Las Parties promoted, the través of mechanisms diseñadores to such an efect, la

concurrence of subjects en el MIBEL, from manera that foment la liquidity del

mismo.

Artículo 3.-Projects

1. Quedan sometitained to los derechos y obligaciones derived de la creación del MIBEL

all the subjects that actuan en el electrical market of both Parties, así as

cualquier otro subject that directly the indirectly, intervenes en el electrical system of

each uno of the countries.

2. Tendrán la consideración de subjected, to los efectos de su actuación en el MIBEL, los

siguients:

a Los productores de energía electric, which son aquellas personas physical the legal

that tienen la función de generar energía electric, así as las de construct, operate y

mantener las centrales de producción, both for propio consumption, and for consumption

of terceros.

b Quienes realicen la incorporación a las networks of transport y distribución

nationales de energía proceeded from otros exterior systems upon su adquisición

en terceros countries.

c Las societies rector de los markets organized y, una vez creased, el

Operator del Mercado Iberian (IMO).

d Los Operators del Sistema de each una de las Parties.

and Los marketers regulated the suministrators of last resort, en los

terminos en que que quedan specified en la Directive 2003 /54/CE del Parliament

Europeo y del Consejo on communes standards for el inland market de la

electricidad.

f Los commercializers, which son aquellas personas legal persons acceding to las

transport networks the distribución, tienen as a función la venta de energía electric a

los consumers the the otros subjectos del system.

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g Los consumers finales, physical personas the legal that compren la energía for

su propio consumption .

h Los agents that actuen per cuenta de otros subjectos del MIBEL, de acuerdo con la

normative that les resulte de applicación.

i Los agents that negotien instruments financieros en los markets del MIBEL.

j Cualesquiera otros agents who define themselves by acuerdo de las Parties.

Part II

Specific disposals

Artículo 4.-Creación de un Operador del Mercado Ibic.

1. Las Parties fostered la creación de un Operador del Mercado Iberico (IMO), which

asumwill las funces del Operador del Mercado Iberian Polo Portugués (OMIP) y

del Operador del Mercado Iberian Polo Español (OMIE).

2. OMIP will act as a sociedad rectora del market to plazo y OMIE as a sociedad

rectora del market diario, previo cumplimiento, the efectos efectos, de la normativa

vigente en el State Part en cuyo territorio tengan su headquarters.

3. Hasta el moment de la creación de OMI, will open un periodo transitorio, during el

cual OMIP y OMIE tendrán la consideración de subjectos del sector electrical.

4. During el periodo transitorio indicated en el trimmed anterior, tendrán place las

siguent operaciones:

a Before that transcurra un año since la entrance en funcamiento del MIBEL,

las companies rector de los markets deberán accomodate su actuariate de

mode that ningún shareholder posea bad del 5% del capital de ninguna de ellas.

b En el mismo plazo, deberá cumplirse el requirement that ninguno de los

Operators del Sistema tenga una participación superior al 3% en las societies

rectors del market.

c Before of the años since la entrance en funcamiento del MIBEL, OMIP y

OMIE deberán integrates for la constitución de un sole operator, el

Operator del Mercado Iberian (IMO).

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5. Tras el periodo transitorio al that refiere el trimmed anterior, ningún shareholder

podra poseer evil del 5% del capital de ninguna sociedad rectora del market, ni los

operators del sector electric, en su suite, podrán poseer bad del 40% del 40% del 40%

mismo.

6. Tras el periodo transitorio al that refiere el trimmed 4, los Operators del Sistema

on the podrán tener una participación superior al 3% en ninguna sociedad rectora de los

markets.

7. Las Parties adoptarán las measures necesary to posibilitate that los markets se

financien by sí mismos, una vez transcurrido un periodo transitorio in the lower a

of the años agreed between las Parties. During this transitorio periodo, la financiación

of the markets rotten to be complemented by las tariffs.

Artículo 5.-Operación del Sistema

1. Los Operators del Sistema de each una de las Parties son los responsables de la

gestión technique del system y tienen by object guaranteed la continuidad y seguridad del

electrical sumpl, the través de la gestión de los servicios de adjustments del system.

2. Las funces y mechanisms of coordinación among los Operators del Sistema

of each una de las Parties se estacecerán per acuerdo of both.

3. Transcurrido un periodo transitorio that agrearán las Parties, los Operators del

System on the podrán, en ningún case, perform operaciones de commercialización de energía

electrical.

4. En el ámbito del number previous, before transcurrido un año since la entrance

en funcamiento del MIBEL, la Red Electrical National (REN) y la Red Electrical de

España (REE) harán una propuesta a sus Gobiernos respective to solve

definitely los historical contracts of energía de que sean holders.

Artículo 6.-Markets de contratación de energía electric en el MIBEL

1. Los markets organized del MIBEL, to los que se refiere el apartado 2 del

artículo primero y su form de liquidación serán los siguients:

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a) Markets to plazo, which incluyen transacons referred to energía con bloques

subsequent delivery al día siguiente de la contratación, de liquidación both by delivery

physics as by differentiating.

b) Diarios markets, which buy them traded las traded from energía blokes

y delivery al día siguiente de la contratación, de liquidación necesarily by delivery

physics.

c) Intradiario market, de liquidación necesarily by physical delivery.

2. Los markets in the organized, to los que se refiere el apartado 2 del artículo

primero, stan formed by los contracts bilaterales among los subjectos del market, de

liquidación both by physical delivery and by differentiation.

3. La contratación de los servicios de adjustments del system en el mismo día podshall be

carried out the latches of market mechanisms, to be defined by each operator del system y

su liquidación will be necesarily for physical delivery.

Artículo 7: Régimen de los markets y liquidity

1. En los markets cited en el artículo anterior se apply la legislación de la Part

en la que constituyan.

2. Los markets diario y a plazo deberán adaptarse a lo dispuesto en la legislación

funnable that les sea applicable.

3. OMIE gestionshall el market diario en régimen of exclusividad sodium during un

periodo transitorio cuyo plazo will be defined by las Parties.

4. Las Parties commit to stableming:

a) During un periodo transitorio to be agreed between ellas, un percentages minimum of

energía that los commercializers regulated deberán acquire en el market a

plazo gestioned by OMIP, así as mechanisms that promuevan una gestión

efficient commercial by part of agent dichos.

(b) Mechanisms that fomenten la desintegración vertical de las companies type

subastas virtuales de capacidad u otros.

5. La contratación de servicios de adjustment del system will work en régimen de

exclusividad.

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6. El marco normative de desarrollo del present Convenio will determine la forma de

participación of each Part en los procedurón de authorizing consent markets that

realice la otra Part.

Artículo 8: Gestión economie de la interconexión among Portugal y España

Las Parties accorarán market mechanisms for asignar la capacidad de

interconexión among los systems español y Portuguese.

Artículo 9.-Tariffs.

1. Las Parties, upon acuerdos that estimen necesarios, tenderán a la armonización

of sus tusstructures.

2. El proceso de armonización se will inspire en los principios de aditividad tarifaria, de

transparencia, de uniformidad y deberá reflect los costes really incurrids en el

powered by energía electric, así how to take as a reference los preces de

los markets defined en el artículo 6.

3. Before transcurrido un año since la entrance en funcamiento del MIBEL, las

Parts definirán un plan, which habrá to be informed by el Consejo de Regulators,

con seen to las implementación de la armonización tarifaria.

Part III

Mechanisms of regulación, consultation, supervisión y gestión.

Artículo 10: Supervisión

1. Las entities de supervisión del MIBEL serán, en Portugal, la Entidad Regulator

of los Servicios EnergEthics (ERSE) y la Comisión de los Markets de Values

Mobiliarios (CMVM) y, en España, la Comisión Nacional de la Energía (CNE) y la

Comisión Nacional del Mercado de Values (CNMV).

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2. La supervisión de los markets defined en el MIBEL will be held by las entities

de supervisión de la Part en la que éstos se constituyan, de acuerdo con la

legislación of each Party en this materia.

3. Las entities de supervisión de los markets desempeñarán de coordinada

sus funces en el MIBEL.

4. Las Parties promoted la celebración de Memorandums de Memorandento (MOUs)

between las competent supervising authorities, en el ámbito de applicación del

MIBEL.

Artículo 11-Consejo of Regulators.

1. Las Parties procederán a la creación de un Consejo de Regulators integrated by

representatives of la Entidad Regulator of los Servicios EnergEthics (ERSE), la

Comisión Nacional de la Energía (CNE), la Comisión de los Markets de Values

Mobiliarios (CMVM) y la Comisión Nacional del Mercado de Values (CNMV).

2. El Consejo de Regulators tendrá las funces siguent:

a) El seguimiento de la applicación y desarrollo del MIBEL.

b) Informing preceptively con character previo a la imposición de sanciones by

infractuaces muy graves, en el ámbito del MIBEL, to be agreed between las Parties.

c) La coordinación de la actuación de sus miMembers en el ejercicio de sus

Potesties of supervisión del MIBEL.

d) La emisión de informes coordinates about propuestas de reglamentación del

funcamiento del MIBEL o de su modiación y about los reglaments

propuests by las societies rector de los markets that constituyan.

e) Cualesquiera otras that sean agreed by las Parties

Artículo 12: Committee of Agents del Mercado

Las societies rector podrán crear, for sus respective markets, Committees of

Market agents, such as advisory bodies.

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Artículo 13: Committee of Gestión Technical y Economie del MIBEL

Will create un Comité de Gestión Technical y Economic del MIBEL, integrated by

representatives of los operators of los systems y de los markets, to gestionise de

form adecuada la comunicación y los flujos de información necesarios among los

distinguished operators, así as to facilitate las cuestiones of disarrollo everyday de sus

functionals.

Part IV

Authoración and inscripción de los agents y guarantees de suministro

Artículo 14.-Administrative procedures of permaciones y registration of los

agents.

1. El reconocimiento per una de las Parties will automatically believe the un agent for

be able to act en la otra.

2. Los procedurals administrative authorization y registration of los agents for el

ejercicio de las Different activities en España y Portugal deberán be armonized

over la base de la reciprocidad.

Artículo 15.-Garantía del suministro.

1. En el ámbito del funcamiento del MIBEL, las Parties undertake to act

según el principio de solidaridad that debe be ejercido en case of emergencia,

especially cuando esté en cuestión la guaranteeing del suministro enero en el

espacio del MIBEL.

2. Sin perjuicio de lo laid down en el trimmed previous, each una of las Parties will rot,

en case of emergencia en su espacio, adopt aquellas measures that sean accurate to

assured su suministro energetic.

3. La adopción de dichas measures deberá ser puesta en conocimiento de la Autoridad

de la otra national de la otra Part a la mayor brevedad y si fuera posible before del inicio de la

ejecución de las mismas.

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4.-Las actuaciones en case of emergency as per al principio de solidaridad referred

en el apartado 1, serán object of Protocols addies to this Convenio.

Part V

Infractiones, sanciones y jurisdicción competent

Artículo 16.-Infractiones y sanciones

1. Las infractiones concerning la violación de la normativa del MIBEL y sus

corresponding accordients sanciones quedarán defined by la legislación internal of each uno

de las Parties y en el ámbito del apartado 4 del artículo 1 del present Convenio,

compromising las mismas to respect lo siguiente:

a) Las infringifices se clasificarán en muy graves, serious y light.

b) Se stacecerán fines proporales al type of infracción, hasta el amount

maximum of 3,000,000 billion euros.

c) Se preverán mechanisms of intercambio de la información necesaria for la

instrucción y resolución de los procemientos, sin perjuicio de la obligación de

secret that, en su case, pese over the competent authorities.

d) Whether to predict, such as consecuencia de la infracción, la posibilidad de revocación y

suspensión de la permación administrative.

2. Las competent authorities en each una de las Parties informarán a las demás

supervising authorities del MIBEL de las sanciones applied, the efectus de la

applicación de la letter d) del apartado anterior.

Artículo 17. Procedurum sanctioner

1. La instrucción de los procedmientos sanctioners y la resolución de los mismos,

it will be competency of los organs that en each Part la tengan ascribe, of acuerdo

internal normative con.

2. La competencia cited en el Previous number if determinate según el criterio del stead

en el que se cometió la infracción.

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3. Si in the fuera posible determine el place donde if cometió la infracción, will apply el

criterio de la nationalidad del subjecto infringer, si este fuera español the Portuguese.

4. En otro case, if it will apply el criterio del place en el que el subjecto infringer haya been

authorized en primer place for el ejercicio de una actividad en el ámbito de este

market.

Artículo 18.-Jurisdicción competent.

La jurisdicción competent to conocer de los resources that dicten as

consecuencia de la applicación del MIBEL vendrá determined by la nationalidad de la

authoridad that hubiera dictated el act that recurs.

Part VI

Disposiciones finales

Artículo 19.-Comisión de Seguimiento.

1. To la resolución de controversias that puedan arise about la interpretación y

applies applicación del present Convenio, se creshall una Comisión de Seguimiento formed by

of the representatives of each of the las Parties.

2. La Comisión will resolve by mayoría y deberá decide en un plazo maximum of six

months from la closes en that if suscitó la controversisia, save prorroga awake by

ella misma.

3. La Comisión adopt su reglamende of funcamiento.

Artículo 20.-Protocols addiales.

Las Parties podrán celebrate Protocols Addiales al present Convenio.

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Artículo 21.-Entry en vigor y régimen transitorio

1. El present Convenio will enter en vigor en la closes de recepción de la last

notiaciación en la that communicates that if han complied with derecho requirements

internal of both necesarios al efectus.

2. Hasta la closes de entrance en vigor del present Convenio, las parts continuarán

applying for the title provisional el Convenio International by el acuerda la

constitución de un Iberian market de la energía electric between la Portuguese Republic

y el Kingdom de España, firmed en Lisboa el 20 de enero of 2004.

Artículo 22.-Vigencia y denounces.

El present Convenio will be en vigor by un periodo of the años, renovable

automagically by iguales periode tiempo, save denounces carried out by

cualquiera de las Parties, in writing the by vivid diplomatic, con una antelación minimal de

six months.

Artículo 23.-Revisión.

1. El present Convenio will be reviewed by way of acuerdo between the Parties.

2. Las enmiendas entrarán en vigour con arreglo a lo dispuesto en el number 1 del

artículo 15.

Artículo 24.-Derecho communario.

El present Convenio whether to interpret y will apply de conformidad con las norms of

Derecho comunitario applicable.

En fe de lo cual, los abajo firmantes, debidly entitled, suscriben el present

Convenio.

Hecho en Santiago de Compostela el 1 de Octubre de 2004, en las las lenguas Portuguese y

española, siendo both equally auténtic texts.

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EL MINISTER OF ACTIVITIES

ECONOMICAL Y DE TRABAJO DE LA

PORTUGUESE REPUBLIC

Alvaro Roque de Pinho Bissaya Barreto

EL MINISTER OF INDUSTRY,

TOURISM Y COMERCIO DEL

KINGDOM OF ESPAÑA

José Montilla Aguilera