Approving The Agreement Between The Portuguese Republic And The Kingdom Of Spain For The Constitution Of An Iberian Electricity Market, Signed In Santiago De Compostela, 1 October 2004.

Original Language Title: Aprova o Acordo entre a República Portuguesa e o Reino de Espanha para a Constituição de um Mercado Ibérico da Energia Eléctrica, assinado em Santiago de Compostela, a 1 de Outubro de 2004.

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now

Read the untranslated law here: http://app.parlamento.pt/webutils/docs/doc.pdf?path=6148523063446f764c3246795a5868774d546f334e7a67774c336470626d6c7561574e7059585270646d467a4c316776644756346447397a4c334277636a49324c5667755a47396a&fich=ppr26-X.doc&Inline=false

1 MOTION for a RESOLUTION paragraph 26/X whereas in XX Luso-Spanish Summit, held on 1 October 2004, in Santiago de Compostela, the Minister of economic activities and the work of Portugal and the Minister of industry, trade and tourism of Spain signed an agreement setting out the conditions for the implementation of the Iberian electricity Market (MIBEL); Aware of that will be in range of Portuguese and Spanish companies, an electricity futures market; Recognizing that a single market of electricity, the Iberian level, constitutes an important milestone in the integration process of the electrical systems of Portugal and Spain and the construction of the internal energy market in the European Union; So: under d) of paragraph 1 of article 197 of the Constitution, the Government presents to the Assembly of the Republic the following resolution: Approving the agreement between the Portuguese Republic and the Kingdom of Spain for the Constitution of an Iberian electricity Market, signed in Santiago de Compostela, 1 October 2004, the text of authenticated versions in Spanish and Portuguese languages, if published in the annex.

Seen and approved by the Council of Ministers of 17 November 2005 Prime Minister the Minister of Parliamentary Affairs Minister Presidency 2 agreement between the Portuguese Republic and the Kingdom of Spain concerning the Constitution of an Iberian electricity Market the Portuguese Republic and the Kingdom of Spain, hereinafter referred to as "the parties", in the framework of cooperation between the two countries that it intends to move to the completion of the internal energy market; Continuing cooperation, initiated in 1998, between the Portuguese and Spanish Governments to progressively overcome existing obstacles and encourage the integration of electrical systems; Bearing in mind the Memorandum of agreement concluded on 29 July 1998 by the Minister of economy of Portugal and by the Minister of industry and energy of Spain for the cooperation in the field of electrical energy; the Protocol of cooperation between the Spanish and Portuguese Governments for the creation of the Iberian electricity Market, signed in Madrid on November 14, 2001 by the Minister of economy of Portugal and by the First Vice-Minister of the Government and Minister for Economic Affairs of the Kingdom of Spain, where they establish the conditions for the creation of the Iberian electricity Market; as well as the memorandum of understanding signed in Figueira da Foz, 8 November 2003, in the framework of the Luso-Spanish Summit 19TH, in that the parties, represented by the same signatories, fix the timetable for the implementation of the Iberian electricity Market; Aware of the mutual benefits arising from the creation of a common electricity market of the parties, the name Iberian electricity Market, within the framework of a process of 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 that will allow us to accelerate the process of implementation of the provisions of Directive 2003/54/EC of the European Parliament and of the Council of 26 June 2003 on common rules for the internal market in electricity by favouring exchanges and competition between companies in this sector;
3 whereas the integration of both systems will be beneficial for consumers of the two countries and to allow access for all market participants on a level playing field, transparency and objectivity and in full compliance with applicable Community law; Determined to create a stable legal framework, which allows the operators of the electrical systems of the parties to develop their activities in the entire Iberian Peninsula; Given that both countries signed the January 20 2004 in Lisbon an agreement on the establishment of an Iberian electricity Market, which has been applied provisionally between the parties since 22 April 2004 and entered into force; Taking into account that the practice resulting from the provisional application of the agreement indicated the need to review its legal framework and the obligations contained therein in order to allow for an effective implementation of the Iberian electricity Market, in order to adapt them to the needs of both countries and enable the achievement of the above objectives; They consider it necessary to conclude a new agreement and agree as follows: part I General provisions article 1 subject matter 1. The object of this agreement is the creation and development of a common electricity market of the parties, designated the Iberian market of electricity, hereinafter "MIBEL" as a milestone in the process of integration of the electrical systems of both countries. 2. The MIBEL is formed by the set of markets organized and not organized to carry out transactions or contracts for electricity and if negotiate financial instruments that have the same energy as a reference, as well as others that may be agreed upon by the parties.
4 3. The creation of an Iberian electricity Market implies the recognition of a single electricity market for both parties, in which all players have equal rights and obligations. 4. Both parties are required to develop and modify, in a coordinated manner, the necessary internal laws and regulations, to allow the operation of MIBEL. 5. The MIBEL will start its operation before 30 June 2005, with the free and equal access of both parties to the markets. 6. With the conclusion of this agreement, the national Governments of each of the Parties shall undertake to fulfil the obligations arising from the existence of an Iberian electricity Market.

Article 2 guiding principles 1. The operation of the MIBEL should be based on the principles of transparency, free competition, objectivity and liquidity, self-financing and self-organisation of markets. 2. The principle of self-financing of the markets referred to in the preceding paragraph, shall be applied without prejudice to an initial period of transition, fixed by the parties in the financing of the Iberian market Operator Portuguese pole (OMIP) and Iberian Market operator's Spanish pole (OMIE), referred to in article 4, can be complemented by the tariffs. 3. The principle of self-organization will be applied without prejudice to a proper authorization and supervision model. 4. The Parties shall promote, through mechanisms designed for this purpose, competition between entities of the MIBEL so that if fosters the liquidity.


5 article 3 1 Entities. Shall be subject to the rights and obligations resulting from the establishment of MIBEL all entities operating in the electricity market of the parties, and any other entity which directly or indirectly intervene in electric system of each country. 2. The parties consider entities, for the purpose of its actions on the following: the MIBEL) electric power producers, natural or legal persons whose function is to produce electricity as well as build, operate and maintain production plants, both for their own use, as for consumption of third parties; b) Those operating transport networks integration and national distribution of energy from other external systems through their acquisition of third countries; c) asset management companies of organized markets and, once created, the Iberian market Operator (IMO); d) system operators of each party; e) regulated sales companies or suppliers of last resort, as are specified in Directive 2003/54/EC of the European Parliament and of the Council on common rules for the internal market in electricity; f), sales companies, legal persons accessing transmission or distribution networks, have as their function the sale of electricity to consumers or to other entities of the system; g) final consumers, natural or legal persons who purchase energy for their own consumption; h) agents acting on behalf of other entities of the MIBEL, in accordance with the legal provisions applicable to them; I) agents who negotiate financial instruments in the markets of the MIBEL; j) Any other agents that define by agreement of the parties.

Part II specific provisions article 4 6 creation of an Iberian market Operator


1. The Parties shall promote the creation of an Iberian market Operator (IMO), which will assume the functions of the Iberian market Operator Portuguese pole (OMIP) and Iberian Market operator's Spanish pole (OMIE). 2. The OMIP will act as managing body of the futures market and OMIE as managing body of the daily market, subject to compliance with prior to that end, the legislation in force in the territory have their headquarters. 3. Until the establishment of the IMO, there will be a transitional period during which OMIP and OMIE will be regarded as electric sector entities. 4. During the transitional period indicated in the preceding paragraph, will take place as follows: a) within one year from the entry into operation of the MIBEL, the market companies should set a limit of participation of shareholders, so that no shareholder owns more than 5% of the share capital of any of them; (b)) in the same period, should be fulfilled the requirement of any system operators have a stake of more than 3% in the holding companies; c) Until two years after the entry into operation of the MIBEL, OMIP and OMIE must integrate with a view to the establishment of a single operator, the Iberian Market operator (IMO). 5. After the transitional period referred to in the preceding paragraph, no shareholder can own more than 5% of the share capital of any company and the electric sector entities as a whole, cannot own more than 40% of the same. 6. After the transitional period referred to in paragraph 4, no system operators may have a stake of more than 3% in any holding company market. 7. The Parties shall take the necessary measures to ensure that markets are self-financing at the end of a transitional period to be agreed between them, not less than two years. During this transitional period, the financing markets may be complemented by the tariffs.
7 article 5 system operation 1. The operators of the system of each of the parties are responsible for the technical management of the system and designed to ensure the continuity and security of supply of electricity, through the management of services of system settings. 2. The functions and mechanisms of coordination between the System Operators of each of the Parties shall establish by agreement between both. 3. System Operators may not, under any circumstances, carry out electrical energy trading operations, subject to a transitional period to be agreed by both parties. 4. Under the preceding paragraph, and within one year after the entry into operation of the MIBEL, the National electricity network (REN) and the Electrical Network of Spain (REE) will make a proposal to their respective Governments a definitive solution to the historical energy contracts that they hold.

Article 6 appointment of electricity markets in the MIBEL 1. The organized markets of the MIBEL, as referred to in paragraph 2 of article 1, and its liquidation shall be as follows: a), Markets that comprise transactions regarding blocks of energy with subsequent delivery to the following day of hiring, settlement or by physical delivery or differences; b) daily Markets, including transactions relating to power blocks with next day delivery to the hiring, not necessarily physical delivery settlement; c) intraday Market, settlement necessarily by physical delivery. 2. The organized markets, referred to in paragraph 2 of article 1, are composed of bilateral contracts between entities of the MIBEL, settlement either by physical delivery as per differences.
8 3. The hiring of the services of system adjustment can be performed on the same day through market mechanisms, to define for each system operator, and the settlement will necessarily be for physical delivery.

Article 7 markets and liquidity Regime 1. The markets referred to in the preceding article shall apply to legislation in the part where you are. 2. daily and forward markets should adapt to the financial legislation applicable to them. 3. The OMIE will daily market management in exclusivity, only during a transitional period which period shall be defined by the parties. 4. The parties undertake to establish: a) During a transitional period to be agreed between them, only a small percentage of energy regulated sales companies will have to acquire in the futures market managed by the OMIP as well as mechanisms that promote efficient commercial management by management companies; b) mechanisms that promote the vertical disintegration of enterprises, such as virtual auctions or other. 5. the employment adjustment system services should work in exclusivity. 6. normative legal Us develop under this agreement will be defined the form of participation of each party in the market authorisation procedures that the other party to perform.

Article 8 economic management of the interconnection between Portugal and Spain the Parties shall agree on market mechanisms to allocate interconnection capacity between the Portuguese and Spanish systems.


9 Article 9 Tariffs 1. The parties, through the agreements as they may deem necessary, will tend to the harmonization of their tariff structures. 2. The tariff harmonization process will be based on the principles of tariff transparency, additivity of uniformity, and must reflect actual costs incurred in the electric power supply, as well as taking as a reference the prices of markets defined in article 6. 3. Within one year from the entry into operation 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 harmonization.

Part III regulation mechanisms, consultation, supervision and management article 10 Supervision 1. Are supervisory entities of the MIBEL, by Portugal, the energy services regulatory authority (ERSE) and the Securities Markets Commission (CMVM), and part of Spain, the National Energy Commission (CNE) and the National Securities Commission (CNMV). 2. The supervision of markets defined under the MIBEL will take supervisory authorities the part where they constitute, according to the relevant legislation to this matter. 3. the supervisory authorities shall carry out their duties markets the MIBEL in a coordinated manner. 4. The Parties shall promote the conclusion of memoranda of understanding between the competent supervisory authorities, within the scope of MIBEL.


10 article 11 the Board of regulators 1. The Parties shall set up a Council of regulators, integrated by representatives of the ERSE, the CNE, the SEC and the CNMV. 2. The Board of regulators shall have the following functions: a) monitoring the implementation and development of the MIBEL; b) give prior notice required and non-binding to the application of penalties for very serious offences, within the framework of the MIBEL, to be agreed between the parties; (c) Coordination of the activities of its) members in the exercise of its powers of supervision of the MIBEL; d) issue opinions on proposals for regulation of the coordinated functioning of MIBEL or their modification, and on the proposed regulations for the management of the markets that set up; and Any others that are agreed) by the parties.

Article 12 establishment of market Agents Committee asset management companies will be able to create, for the respective markets, market Agents, committees as advisory bodies.

Article 13 technical and economic management Committee of MIBEL the Parties shall establish a Committee of technical and Economic Management of the MIBEL, integrated by representatives of the operators of the systems and markets, to manage, as appropriate, the communication and the flow of necessary information between the various operators, as well as to facilitate the day-to-day management of its activities.

Part IV licensing and registration of agents and 11 article 14 Supply assurance administrative procedures for authorisation and registration of agents 1. The recognition of the agent by a party means the automatic recognition. 2. The administrative procedures for authorisation and registration of agents, for different activities in Portugal and in Spain, should be harmonised in accordance with the principle of reciprocity.

Article 15 1 Supply assurance. Under the operation of the MIBEL, the parties undertake to act according to the principle of solidarity, which must be exercised in the event of an emergency, including when is concerned the security of energy supply in the space of the MIBEL. 2. Without prejudice to the established in the preceding paragraph, each of the parties may, in case of an emergency in your space, take appropriate measures to ensure their energy supply. 3. The adoption of these measures should be, as soon as possible and if possible before the beginning of the implementation of the same, informed the national authority of the other party. 4. The action in case of emergency, you should obey the principle of solidarity, in accordance with paragraph 1, shall be the subject of additional protocols.

Part V Offences, penalties and Jurisdiction article 16 Offences and penalties


1. The offences relating to violations of the rules and penalties are set MIBEL in the internal legislation of each of the parties and under the number 4 of article 1 of this agreement, committing the same respecting the following: a) the offences classified in very serious, serious and light;
12 b) shall Establish fines proportionate to the type of offence, up to a maximum amount of EUR 3 000 000; c) shall provide for mechanisms for the exchange of information necessary for the instruction and settlement of infringement proceedings, although subject to obligations of professional secrecy which, in each case, served on the competent authorities; (d)) shall be, as a result of the offence, the possibility of revocation or suspension of the administrative authorization. 2. The competent authorities of each Party shall inform the other supervisory authorities of MIBEL of penalties imposed, in particular for the purposes of point (d)) of the preceding paragraph.

Article 17 sanctions Procedure 1. The statement of infringement proceedings and the resolution of the same fit to the bodies to which each party has assigned this competency, in accordance with their domestic legislation. 2. The powers referred to in the preceding paragraph shall be determined according to 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, shall apply the criterion of the nationality of the offender, if the subject nationality is Spanish or Portuguese. 4. In other cases, shall apply the criteria of the place where the subject offender has obtained, firstly, authorization to exercise an activity in this market.

Article 18 competent court the competent jurisdiction to hear appeals of administrative acts delivered by the competent authorities in the application of norms of MIBEL is determined by the nationality of the authority that issued the Act of which is contested.


13 part VI final provisions article 19 1 Monitoring Committee. For the resolution of disagreements relating to the interpretation and application of this agreement, a Monitoring Committee composed of two representatives from each party. 2. decisions shall be taken by majority and within a maximum period of six months, counted from the date on which reveal the divergence, unless agreed by the same extension. 3. the Commission shall adopt its own rules of operation.

Article 20 Additional Protocols, the parties may conclude additional protocols to this agreement.

Article 21 entry into force and transitional arrangements 1. This agreement shall enter into force on the date of receipt of the last notification that complied with the requirements of national law of both parties necessary for this purpose. 2. Until the date of entry into force of this agreement, the parties will continue to apply on a provisional basis the agreement between the Portuguese Republic and the Kingdom of Spain for the Constitution of an Iberian electricity Market, signed in Lisbon on 20 January 2004.


14 article 22 duration and Termination this Agreement shall remain in force for a period of two years, automatically renewable for equal periods, unless either party terminate, in writing and through diplomatic channels, at least six months.

Article 23 Revision 1. This agreement may be revised by agreement between the parties. 2. Amendments shall enter into force in accordance with article 21, paragraph 1.

Article 24 Community law this Agreement shall be interpreted and applied in accordance with the rules of Community law applicable.

In witness whereof, the undersigned, being duly authorised, have signed this agreement.

Done in Santiago de Compostela, the first day of the month of October 2004, in the Portuguese and Spanish languages, both texts equally authentic doing.

The Minister of economic activities and the work of the Portuguese Republic the Minister of industry, trade and tourism of the Kingdom of Spain Alvaro Roque de Bissaya Barreto Pine Jose Montilla Aguilera 15 INTERNATIONAL CONVENTION concerning LA CONSTITUCIÓN DE UN IBERIAN MARKET DE LA ENERGÍA ELÉCTRICA ENTRE LA REPÚBLICA PORTUGUESA Y EL REINO DE ESPAÑA La República Portuguesa y el Reino de España , en adelante "las Parts";

Manifesting, en el marco de la cooperacion between both countries su voluntad de avanzar en la conformación del Mercado Interior de la Energía;

As continuación de la cooperacion en 1998 initiated by las Administraciones Públicas española y portuguesa to progressively eliminate, los obstacles y la integración de los promote their electrical systems;

Having this el Acuerdo memo signed el 29 de julio de 1998 por el Ministro de Economía de Portugal y el Ministro de Industria y Energía de España para la cooperacion en materia de energía eléctrica; El Protocol between las Administraciones de cooperación española para la creación y Portuguese del Mercado Ibérico de la electricidad, signed en Madrid el 14 de noviembre de 2001, por el Minister of Economy of Portugal y el Vice-president primero del Gobierno y Economía del Reino de Minister España según el cual se establecen, las condiciones para la creación del Mercado Ibérico de Energía Eléctrica; así el Entendimiento signed memorandum as 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 los Ministers, fijaron el calendario para la concreción del Mercado Ibérico de la Energía Eléctrica;

Aware of los beneficios comprising mutuos la creación de un mercado de la electricidad a las Partes común en el marco de un proceso de integración de los electrical systems of both;


16 convinced that la creación de un Mercado Ibérico de Energía Eléctrica un hito en la construcción constitute del Mercado Interior de la Energía en la Unión Europea y which will allow to accelerate practical aplication process of el las dispositions contenidas en la Directive 2003/54/CE del Parlamento Europeo y del Consejo, 26 June 2003, on standards for Indoor Market comunes de la Electricidad , favoreciendo los intercambios y la competition between companies of this sector;

Whereas her integration of both systems will be beneficiosa para los consumers de los dos y countries that should allow acceder al for all market participants en condiciones de los, transparency and equality objetividad y con pleno respeto del derecho comunitario applicable;

Determined to create un stable legal framework that allows operators of electrical systems los los de las desarrollen Parts su-RI en toda la Peninsula Ibérica;

Teniendo en cuenta el firmaron countries both 20 de enero de 2004 en Lisbon un Convenio por el que se acuerda la constitución de un mercado ibérico de la energía eléctrica entre la República Portuguesa y el Reino de España, which ha been the subject of provisional application between Parties since 22 April 2004 el y que no ha entered into force;

Teniendo en cuenta que la práctica de la aplicación provisional derived del Convenio quoted ha puesto de manifiesto la necesidad de revisar el régimen jurídico y las obligations contenidas en el mismo to allow her actual realización del MIBEL, a fin de adecuarlas a las needs of both countries y al Sham objectives set out actual arriba;

Consideran un nuevo Convenio y necesssary celebrate ACUERDAN LO SIGUIENTE: part I Dispositions generales 17 Article 1.-1 Object. El del Convenio gift object es la creación y desarrollo de un mercado de la electricidad a las parties común con la denominación de la Energía Eléctrica Iberian market, en adelante called MIBEL ", en el marco de un proceso de integración de los electrical systems of both countries. 2. El MIBEL is formed by el set de los organized markets and organized in that business by the electrical energy contracts y en los que se negocian financial instruments which toman as references dicha energía, así as per other sean agreed by las Parts. 3. La creación de un Mercado Ibérico de la Energía Eléctrica implies el reconocimiento por las Parts of a single market of la electricidad, en el cual todos los derechos y tendrán agents of equality obligations. 4. Las parties to develop inclusion obligan y modify, so la coordinada Chilean legislation necessary to allow internal competition regulation y el original del MIBEL. 5. El MIBEL comenzará su functioning before del 30 June 2005, con el libre and equal access of both parties the agents you los markets. 6. Con la firma del Convenio, las Administraciones Públicas gift nacionales de una de las each parties could compromise the enforce the obligations derived con las de la un existence Iberian market de la Energía Eléctrica.

Article 2: Guiding Principles 1. El operating del MIBEL if basará en los principles of transparency, competence, objetividad y libre en el autofinanciación, y los autoorganización markets. 2. El autofinanciación de los principle markets included en el punto anterior sin perjuicio de un will apply an initial stage Transitional Committee, fijado by las Parts, en el que la financiación del Operador del Mercado Ibérico Polo English (OMIP) y del Operator del Mercado Ibérico Polo Español (OMIE), los que se refiere el article 4, can be complemented by las rates.

18 3. El principio de autoorganización sin perjuicio de un will apply adequate autorización y oversight model. 4. Las promoverán Parts, through mechanisms to such diseñados efecto, la concurrencia de subjects en el MIBEL, way that fosters it liquidity del mismo.

Article 3.-Subjects 1. Quedan los derechos y sometidos obligations derived from la creación del MIBEL all subjects that actúan en el electric market of both Parties, so as any other guy that direct or indirectly intervenga en el electric system of each uno de los countries. 2. Tendrán la consideración de subjects, the solution of su actuación en el MIBEL, los followings: Los productores de energía eléctrica, que son aquellas personas the legal physical tienen la generar energía power of for so as you build, operate Pilar y las centrales production, both for own consumption, as for consumption of third parties. (b) Those realicen la incorporation the las y distribution transport networks nacionales de energía from other external systems through procurement capacity building en su countries third parties. c Las rectoras de los societies organized markets y, once created, el del Iberian market Operator (IMO). d Los del Operators each system una de las Partes. and Los suministradores the regulated sales companies of last resort, en los términos en que quedan specified in Directive 2003/54/CE del Parlamento Europeo y del Consejo comunes para el market standards interior de la electricidad. f You traders, que son aquellas personas a las accediendo legal transport networks the distribution, tienen as electrical energy for la venta los otros subjects the consumer system.
19 g Los finales consumers, the legal physical compren personas la energía to su propio. h Los actúen agents by cuenta de otros subjects del MIBEL, acuerdo con la normativa to les results from application. I Los agents financial instruments negocien en los del markets MIBEL. j Cualesquiera otros agents definan by acuerdo de las Partes.

Part II specific Dispositions Article 4.-Creación de un Operador del Mercado Ibérico.

1. Las promoverán Parts la creación de un Operador del Mercado Ibérico (IMO), which las del Operator functions asumirá del Mercado Ibérico Polo English (OMIP) y del Operator del Mercado Ibérico Polo Español (OMIE). 2. sociedad rectora del OMIP act as market the term y sociedad rectora del mercado as OMIE diario, cumplimiento, these prior solution, her current legislation in the State party en cuyo territorio tengan su headquarters. 3. Hasta el moment de la creación de IMO, will open un period Transitional Committee, during el cual OMIP y tendrán la consideración de OMIE subjects electrical sector. 4. During el period Transitional Committee indicated en el apartado anterior, tendrán place las operaciones followings: before transcurra un año desde la entrada en functioning del MIBEL, las rectoras de los deberán markets companies accommodate su shareholding structure so that no shareholder posea bad del 5% del capital of ninguna de ellas. (b) En el mismo term, should cumplirse el requirement that none of los tenga una participación System Operators superior al 3% en las sociedades rectoras del mercado. c before the years since la entrada en functioning del MIBEL, OMIP y OMIE deberán join for the Constitution of a single operator, el Operador del Mercado Ibérico (IMO).
20 5. Tras el period Transitional Committee al refiere el apartado anterior that, no shareholder can bad poseer del 5% del capital of ninguna sociedad rectora del mercado, ni los del tram sector operators, en su conjunto, podrán poseer más del 40% del mismo. 6. Tras el period Transitional Committee al refiere el apartado 4 that, los del Operators podrán tener una participación system superior al 3% en ninguna sociedad rectora de los markets. 7. Las adoptarán las Parts needed for posibilitar measures that los mismos financien markets for himself, una vez transcurrido un Transitional Committee in the period less than the years agreed between Parties. During this period Transitional Committee, la financiación de los markets can be complemented by las rates.

Article 5.-Operating System 1. Los del Operators each system una de las Partes son los responsables de la gestión del sistema y tienen technique for object guarantee her modern y seguridad del electric supply, through de la gestión de los servicios del system adjustments. 2. Las functions y coordination mechanisms between los del Operators each system una de las parties establecerán for acuerdo de both. 3. un Transitional Committee that period Transcurrido acordarán las Partes, los del podrán System Operators, in no case, perform operations of marketing of electric energy. 4. En el ámbito del paragraph before transcurrido un año desde la entrada en functioning del MIBEL, la Red Eléctrica Nacional (REN) y la Red Eléctrica de España (REE) harán una propuesta to sus Gobiernos to solve definitely historical energy contracts of them sean holders.

Article 6.-procurement markets of electrical energy in the MIBEL 1. Los organized markets del MIBEL, refiere el apartado that if article 2 del primero y su form of securities will be los followings: 21 a) markets to term, which referred to the block of business incluyen energía con later delivery al día siguiente de la contratación, of securities both for physical delivery as per differences. b) daily, which Markets you move your asses las business referred to the blocks of energy delivery al día siguiente y de la contratación, necessarily by physical delivery securities. c) intradiario Market, securities necessarily by physical delivery. 2. Los organized markets, that if el apartado 2 del refiere article first, están por los bilaterales contracts formed between them are subject to securities market, either by physical delivery as per differences. 3. La contratación de los servicios del system adjustments en el mismo día can be performed through market mechanisms, to define for each system operator y su will necessarily securities by physical delivery.

Article 7: Régimen de los y 1 liquidity markets. En los markets cited previous article apply en el la Chilean legislation de la Part en la que se constituyan. 2. Los y term deberán journal markets adapt lo dispuesto en la Chilean legislation financiera that les sea aplicable. 3. OMIE gestionará el diario en régimen de exclusividad market but during un Transitional Committee period term will be defined by cuyo las Parts. 4. Las parties could compromise to establish: a) During un Transitional Committee the period agreed between ellas, un porcentaje minimum energy that los deberán regulated sales companies acquire en el market term run for OMIP, así as mechanisms that una gestión comercial promuevan efficient by dichos agents. b) geared Mechanisms la desintegración las subastas type companies vertical virtuales capacity u otros. 5. La contratación de servicios del system adjustment work en régimen de exclusividad.
22 6. El marco del Convenio inter-American standards of this will determine her form of participation of each party in the procedures of market autorización realice la otra Part.

Article 8: Economic Management de la interconexión y España Portugal between Las acordarán parts market mechanisms to assign capacity of interconnection between systems español y portugués.

Article 9.-Rates.

1. Las parties by acuerdos that estimen necessary, tenderán a la harmonization of sus pricing structures. 2. El proceso de harmonization if will inspire en los aditividad tariff principles, transparency, uniformidad y reflejar los costes should actually incurred en el abastecimiento de energía eléctrica, así as taking as reference los precios de los markets defined in article 6. 3. Before transcurrido un año desde la entrada en functioning del MIBEL, las definirán un plan, Parties that informed, Armageddon by el Consejo of regulators, con vistas a las de la tariff harmonization implementation.

Part III Regulation, consultation mechanisms, oversight y gestión.

Article 10:1 Oversight. Las oversight entities del MIBEL will be, en Portugal, her Energy Services Regulatory Entity (ERSE) y la Comisión de los stock markets (CMVM) O vigor da Economia Brasileira y, en España, la Comisión Nacional de la Energía (CNE) y la Comisión Nacional del Mercado de Valores (CNMV).
23 2. Her oversight of los markets defined in the MIBEL be held by las oversight entities of her Part in which éstos if constituyan, acuerdo con la Chilean legislation of each Part en this materia. 3. Las oversight entities of los desempeñarán markets so coordinada sus functions en el MIBEL. 4. Las promoverán Parts la celebración de Entendimiento memos (MOUs) between the competent supervisory authorities, en el ámbito de aplicación del MIBEL.

Article 11-the Council of regulators.


1. Las procederán Parts a la creación de un Consejo integrated regulators by representatives of her Energy Services Regulatory Entity (ERSE), la Comisión Nacional de la Energía (CNE), la Comisión de los stock markets O vigor da Economia Brasileira (CMVM) y la Comisión Nacional del Mercado de Valores (CNMV). 2. El Consejo de las functions copy will have stations Regulators: a) El seguimiento de la aplicación y desarrollo del MIBEL. b) Inform preceptivamente con la imposición prior character of sanciones infracciones graves for muy en el ámbito del MIBEL, waking up between Parties. c) La coordination de la actuación de sus miembros en el ejercicio de sus powers of oversight del MIBEL. d) La multi coordinados reports about propuestas of competition regulation del functioning del MIBEL to direct about los reglamentos y su propuestos por las sociedades rectoras de los que se constituyan markets. and Cualesquiera otras) sean agreed by las 12: Article Parts Agents Committee del Mercado Las sociedades rectoras podrán crear sus to respective markets, market Agents Committee, as advisory organs.


24 Article 13: Technical Management Committee Economic y del MIBEL If creará un Technical Management Committee y del Economic MIBEL, integrated by representatives of los systems operators y de los markets, to manage so appropriate hospital la comunicación y los flujos de información necessary between different operators, so you like to facilitate las other blog cuestiones de desarrollo de sus everyday functions.

Part IV Autorización and domestic registration & warranty agents for los of supply Article 14.-Administrative Procedures of autorizaciones y los registration agents.

1. El reconocimiento por una de las Partes believe automatically un agent so he could perform en la otra. 2. Los procedimientos y autorizaciones administrative record de los agents to el ejercicio de las different activities en España y Portugal deberán be armonizados sobre la base de la reciprocidad.

Article 15.-Garantía del supply.

1. En el ámbito del functioning del MIBEL, las parties could compromise the Act según el principio de solidaridad, which must be ejercido en case of an emergency, especially when this point la garantía en del energy supply en el espacio del MIBEL. 2. Sin perjuicio de lo established en el apartado anterior, each una de las Partes podrá, en case of emergency en su espacio, adopt measures that sean to aquellas guarantee energy supply su. 3. La adopción de dichas measures should be puesta en conocimiento de la National Authority of la otra Parte a la mayor brevedad y si fuera posible before del inicio de la execution de las mismas.
4.25-Las actuaciones en case of emergency as al principio de solidaridad referred to en el apartado 1, will be object of adicionales Protocols to this Convention.

Infracciones y sanciones, part V jurisdicción Article 16 competent Infracciones y sanciones.-1. Las infracciones concerning la violación de la normativa del MIBEL y sus correspondientes sanciones quedarán defined by her Chilean legislation of each uno de las Partes y en el ámbito del apartado 4 del article 1 del Convenio, las mismas comprometiéndose gift to keep you following: a) Las infracciones if clasificarán en muy graves, graves y. b) If establecerán fines proporcionales al infracción type, hasta el maximum amount of EUR 3 million. c) If preverán mechanisms of exchange of information necessary for la instrucción y los procedimientos, promote sin perjuicio de la taxation of secret that, in your case, weigh about las competent authorities. (d)) shall, If as consecuencia de la infracción, la posibilidad de revocación y suspensión de la autorización. 2. the competent authorities in every una de las informarán Parts to las demás supervisory authorities del MIBEL de las sanciones applied, the solution de la aplicación de la letter d) del apartado anterior.

Article 17. Sanctioning procedure 1. La instrucción de los procedimientos y la sancionadores de los mismos, will promote competition in los órganos that en each piece la tengan attributed, acuerdo con su internal regulations. 2. La jurisdiction cited en el earlier number will determine según el criterio del lugar en el que se cometió la infracción.
26 3. Si no fuera posible determine which place cometió la el infracción, apply el criterio de la nacionalidad del fellow offender, si fuera español this the English. 4. En otro case, apply el criterio del lugar en el el fellow offender haya been allowed en primer place for el ejercicio de una en el ámbito activity of this market.

Article 18.-Jurisdicción.

La jurisdicción competent to conocer los dicten resources as consecuencia de la aplicación del MIBEL pulling determined by la nacionalidad de la hubiera el dictado that Authority Act if recurre.

Part VI Dispositions finales Article 19.-Comisión de Seguimiento.

1. To promote of controversies that arise about la puedan interpretación y aplicación del presente Convenio, if creará una Comisión de Seguimiento formed by representatives of each una de las Partes. 2. La Comisión solve for y the majority should decide en un maximum term of six months from her close NES suscitó la prórroga controversy, unless agreed by ella misma. 3. La Comisión adopt su reglamento of functioning.

Article 20.-adicionales Protocols.

Las Partes podrán celebrate Adicionales al Protocols this Covenant.


Article 27 Entry into force 21-y régimen Transitional Committee 1. El Convenio gift will enter into force en la recepción de la closes last notification in which to communicate that if han cumplido los requirements of domestic law of both Parties necessary al efecto. 2. Hasta la en input force closes del Convenio, las continuarán parts present applying the provisional title el Convenio Internacional por el que se acuerda la constitución de un mercado ibérico de la energía eléctrica entre la República Portuguesa y el Reino de España, signed en el 20 de enero Lisbon of 2004.

Article 22.-Vigencia y denounces.

El Convenio gift will be en force for a period of years, renovable automatically by iguales de tiempo periods, unless performed by anyone denounces de las Partes, in writing by diplomatic, con una vía antelación a minimum of six months.

Article 23.-Revisión.

1. El Convenio podrá revisarse present by acuerdo between Parties. 2. Las enmiendas entrarán en vigor con lo dispuesto en el dressed number 1 del article 15.

Article 24.-Derecho comunitario.

El Convenio gift if interprets y applies to conformity con las Community Law applicable standards.

En fe de lo cual, los abajo firmantes, debidamente, suscriben el presente Convenio.

Hecho en Santiago de Compostela el 1 de Octubre de 2004, en las lenguas y siendo española, both Portuguese texts equally authentic.
MINISTER of ECONOMIC ACTIVITIES 28 EL Y DE TRABAJO DE LA REPUBLICA PORTUGUESA Alvaro Roque de Bissaya Barreto Pine EL MINISTER of INDUSTRY, tourism Y COMERCIO DEL REINO DE ESPAÑA José Montilla Aguilera