Constitution Of An Eventual Commission For Energy Policy

Original Language Title: Constituição de uma comissão eventual para a política energética

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1 draft resolution n° 158/X creation of a Commission for Any Energy policy energy issues and, in particular, strategic options in national and international terms reached, in our days, much due to the continuous descent of prices of crude in the markets and the restrictions resulting from climate change, accuracy and relevance by now virtually unknown-if you disregard the episodes of so-called "oil shocks" of 1973 and 1979 after which, however, the price of crude on the international markets if reappointed to a stabilization trend.

That much is ahead now, in international economic and technical theses that pointed out that the price of oil should not ever get in, in the future, on a downward trend, developed and developing countries have to pay right now, the "fear of lack of crude". The era of cheap oil is definitely over.

The evolution of energy Portuguese panorama configured, since the revolution of 25 April 1974, roughly as follows: Decree-Law No. 502/76, of June 30, created the EDP-Electricidade de Portugal, E.P., from the merger of several exploration companies of public service production, transmission and distribution of electricity that had, however, been nationalized by Decree-Law No. 205-G/75 , 16 April. This transfer of assets to the ownership of the EDP reported if the 13 companies overwhelmingly, national scale.

EDP, public company, he was from here, with a monopoly of public service production, transmission and distribution of electricity in the territory from the Mainland, the exercise, according to the law, "exclusive arrangements and indefinitely". 2 Exceptuavam-if this scheme only the production and distribution of electricity for own use by entities which, at the date of creation of the EDP, already had the necessary license or to which, heard the EDP, the then Directorate-General Electrical services-today's Directorate-General for Geology and energy-were to grant.

This exception was the regime of so called "self-producers" – small producers of electricity – which has long – more precisely, since law No. 2002, of 26 December 1944, which promulgara the electrification of the country – with the panorama national tram-provided for in the said Law XXX base – although now limited by the contents of the Decree-Law No. 20/81, of 28 of January , which restrict this quality "to natural and legal persons which incidentally the produce". In other words, never as a main activity.

The law of delimitation of sectors (productive), law No. 46/77, of 8 July, forbade "to private companies and other entities of the same kind access to economic activities of generation, transmission and distribution of electricity for public consumption – (a)) of article 4 of the law.

However, with the publication of Decree-Law No 189/88 of 27 May – issued pursuant to legislative authorization of the Assembly of the Republic, granted by law No 34/88, of 2 April, the XI Government came to derogate from the Act of Delimitation in force sectors and allow the activity of production of electrical energy "natural or legal persons , governed by public or private law, regardless of the legal form that "take," provided that: a) the industrial plant of production of energy, as a whole, "not to exceed" the apparent power 10000 installed kVA; and (b)) "Were" used renewable resources, national fuels or industrial, agricultural or urban waste, or "treat" cogeneration facilities, the latter with unlimited power. "

3 this legislation, among other things, had been to ensure, for the first time in our country: a) on the one hand, the obligation of EDP absorb (buy) the energy produced by the new licensed entities and, b) on the other, a remuneration of that energy from an inviting investment rate in this type of production.

The law No. 84/88, of July 20, came to allow "public undertakings, even though nationalized" could, from then on, "by Ordinance, be transformed into limited-liability companies of public capital or most public capital". Was open the door to the privatization of at least part of the capital, of a significant number of public ex-empresas.

The law No 11/90 of 5 April, entitled "framework law on privatisation came allow privatization up to 49% of the capital of public enterprises.

Decree-Law No. 7/91, of 8 January, transformed the EDP in capital joint-stock company "public" referred to solely the possibility of "in the 90 days following the approval of an" evaluation of the EDP's heritage, the Board of Directors "submitting" to the Ministers of finance and industry and the General Plan of the Power divisions to carry out ". Namely, the disintegration of EDP in several previous new companies with specific purposes.

Decree-Law No. 78/97, of April 7, came to approve the first phase of the reprivatisation process-of up to 49% of the share capital of EDP, having, among other things, created the conditions for the definition of the quantity of shares to dispose of, in the later stages of the process of privatization, would be able to be fixed by mere resolution of the Council of Ministers.

With the approval of the fourth phase of the reprivatisation of EDP S.A., operated by Decree-Law No. 141/2000, of 15 July, the State give up their majority in the company's capital.

4 Natural gas was introduced in our energy system with the approval of Decree-Law No. 374/89, of 25 October, and the complementary legislation that followed, covering today, as you know, the big pond of consumers, particularly in the national geographic axis between Setúbal and Braga, where about 75% of the national population.

The project of introduction of this new kind of energy made its course and today the national market is fueled with natural gas from the Algerian gas pipeline from Hassi R ' Mel and, by sea, from the port of Sines.

However, in 1995, the Government approved a legislative package XI who came to restructure the whole sector national tram. Basically: a) the Decree-Law No 182/95 of 27 July established the bases of the Organization of the National electricity system (SEN), passing the coexist one Electric utility System (SEP) and an Independent electrical system (SEI);

b) Decree-Law No 183/95 of 27 July, established the legal framework for the pursuit of the activity of production of electrical energy within the Electric utility System (SEP) and the unbounded electrical system (SENV);

c) Decree-Law No 184/95 of 27 July established the legal regime governing the business of distribution of electricity under the Electric utility System (SEP) and the unbounded electrical system (SENV);

d) Decree-Law No 185/95 of 27 July, established the legal framework for the pursuit of the activity of transport of electrical energy in the National electricity system (SEN) and approved the granting of the exploitation of the National Network of Electric Energy transport (RNT);

5 e) Decree-Law No. 186/95, of 27 July, laid down the provisions relating to the activity of combined production and consumption of electric power and thermal energy through the process of cogeneration;

f) Decree-Law No. 187/97, of 27 July, created the Electric Sector regulatory authority (ERSE) – today the regulatory authority of the services;

g) Decree-Law No. 188/97, of 27 July, lays down the provisions on the establishment, organization and functioning of the Electroprodutor System planning.

Directive 2001/77/EC of the European Parliament and of the Council of 27 September, imposed on Member States of the European Union (EU) concrete targets for increasing the production of electricity from renewable energy sources – wind, solar, geothermal, wave, tidal, hydropower, biomass, landfill gas, treatment plant gas and biogases. The reference value indicated to Portugal, in relation to the gross electricity consumption in the year 2010 was 39%.

The XV Government approved the resolution of the Council of Ministers (RCM) nº 63/2003, 28 April, which established the guidelines of the Portuguese energy policy and, shortly after, the Council of Ministers resolution No. 68/2003, of May 10, which defined the outlines of the strategic and organisational framework of the energy sector.

The RCM nº 63/2003 elected as the main objectives of energy policy: a) the liberalisation of the market; b) reducing energy intensity in the product; c) reducing the energy bill; d) the improvement of the quality of the service; e) security of supply and supply; f) diversification of sources and use of endogenous resources; g) minimise environmental impact; 6:00) and the contribution to the enhancement of productivity of the national economy.

Council of Ministers resolution No. 68/2003, of May 10, came, basically – in the wake of the Council of Ministers Resolution No. 14/2003, of 5 February, which had established the strategic orientations for the reorganisation of the energy sector – determine companies with State representation in its capital leading its strategic action in accordance with the guidelines approved by the Government.

On 26 June 2003 EU directives were published numbers 54 and 55 which secured the common rules for the internal market, respectively, of the electricity and natural gas.

Member States are required, inter alia, to promote transparency in the functioning of the market and the companies in those two threads.

Both directives require the date of 1 July 2007 as the deadline for any customer can buy the gas or electricity in the supplier of your choice.

Council of Ministers resolution No. 169/2005, of 24 October, approved the new national energy strategy having remained, however, in essence, in the same framework of the major strategic objectives established in 2003 diplomas.

The new organisation and operation of the National electricity system (SEN) was approved by Decree-Law No. 29/2006, of 15 February, which hosted European guidelines listed in Directive 2003/54. The now dominant orientation becomes the liberalisation and promoting competition in markets.

Decree-Law No. 30/2006, of 15 February, established a new organization and functioning of the National System of Natural gas (SNG), welcoming the new EU guidelines for the sector, patents in Directive 2003/55, pointing, 7 fundamentally, for the same purposes that were traced to the electric power market.

Finally, the trilogy was completed with Decree-Law No. 31/2006, of 15 February, which approved the new organization and functioning of the National Petroleum System (SPN). This new legislative framework seeks to answer, in a coherent and articulated, the Portuguese State commitments before the International Energy Agency, as well as before the EU in this segment of the energy market.

The supplementary role of the State to ensure the security of fuel supply, through the monitoring of the market by the Directorate General of Geology and energy and the definition of reserves by the agents in it.

The European Commission's Green Paper of 8 March 2006 [COM (2006) 105 final], on the European strategy for sustainable, competitive and secure energy, this organ of the Union undertook to present a "roadmap for renewable energies", whereby:-is established an active programme of practical measures to ensure compliance with the current objectives of the Union in the energy sector;

-Are considered targets or objectives beyond 2010 are necessary, and the nature of them, in order to give long-term certainty to industry and investors, as well as the active programmes and measures needed to make this a reality;

-Adopted a new Community directive on heating and cooling, in addition to the Community framework applicable to energy savings;

-Be established a detailed plan in the short, medium and long term to stabilise and gradually reduce the EU's dependence on imported oil;

8 – and developed research, demonstration and replication commercial initiatives in order to approach the markets clean and renewable energy sources.

In his conclusions, this document points to three main objectives of EU energy policy: sustainability: i) developing competitive renewable sources of energy and other energy sources and low-carbon carriers, particularly alternative transport fuels, (ii)) reduce energy demand in Europe and iii) leading global efforts to curb climate change and improve local air quality;
-Competitiveness: i) ensure that the opening of the energy market bring benefits to consumers and the economy in General, encouraging at the same time the investment in clean energy production and energy efficiency, ii) mitigate the impact of rising international energy prices on the EU economy and its citizens and iii) keeping Europe at the forefront of energy technology;
-Security of supply: tackling the growing dependence on imported energy community thanks to i) an integrated approach – reducing demand, diversifying the EU's energy mix with greater use of indigenous and renewable energy sources competitive and diversifying sources and routes of supply of imported energy, (ii) creating the framework which will encourage) adequate investment to cope with the increased demand for energy , iii) best equipment to respond to emergency situations, iv) improvement of access to global resources for European enterprises and v) the guarantee of access to energy for all citizens and businesses.

This mat, very recently, the resolution of the Assembly of the Republic n° 23/2006, of 23 March approved the agreement between the Portuguese Republic and the Kingdom of Spain for the Constitution of An Iberian electricity Market (MIBEL), signed in Santiago de Compostela on 1 October 2004.

This initiative is part of a diplomatic process of cooperation between the Portuguese and Spanish Governments, which has been dragging on since 1998 to, progressively, 9 existing obstacles and encourage the integration of electrical systems.

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, and still others that may be agreed by the two countries.

The establishment of MIBEL implies the recognition, by both countries, a single market of electricity, in which all players have equal rights and obligations. With this background panorama described easily reveals that Portugal is, nowadays, in the energy domain, a vital crossroads "for its future development model, as well as its sustainability.

In fact, while assisting the growth of crude oil prices on international markets – everything indicates, and as already mentioned, are, increasingly, as irreversible trend – our country has, on balance, the environmental side of the debts, including: a) the foreign energy dependence persisted in about 85% of what the Country consumes , the equivalent of about € 4,000 million/year of imports. Since 1998, the price of a barrel of oil keeps growing, having only between April and October 2005 increased by more than 40%;

b) A persistent too-high rate of energy inefficiency which is estimated to correspond to a potential savings of more than 60% in relation to the current situation and inevitably reflected significantly in the competitiveness of our production units;

(c)) the undertaking, signed within the framework of the Kyoto Protocol on climate change, by 2012, not increase their emissions of Greenhouse Gases in addition to 27% for 1990, the reference year agreed. However, according to projections presented in February by the European Commissioner for environment, Stavros Dimas, based on a report from the European Environment Agency, 10 Portugal should come to achieve a level of growth of 42.2% emissions. This index, multiplied the corresponding tons by the values that have been practiced in the emissions market, will put our country on the embarrassment of having to pay annually several hundred milhões EUROS to be able to continue to produce;

(d)) the need for compliance with obligations under the EU Directive 2001/77 No./CE, of the European Parliament and of the Council of 27 September, on the promotion of electricity produced from renewable energy sources (...) ", under which Portugal must have in 2010, 39% of its gross national electricity consumption covered by energy from those sources. Although Portugal has been making an effort towards the promotion of this type of production of electricity-that are examples the licensing for the production of 1,200 to 1,500 MW of wind power, the recent project for the photovoltaic Center of 18 MW in the Serpa, the tender for the construction of 15 power stations , up to 100 MW of power, from forest biomass-residues, Joseph Rocks, Chairman of the National electricity network (REN), guarantee, at the end of last month, that the delay in relation to the estimated should not exceed two years;

Is within the entire frame stroke that, also recently, some investors tried to get to the lobby of the public discussion on a possible weighting option for the introduction of nuclear power in our country.

The data described constitute therefore an historical, political and economic context very special and sensitive that should not, in any way, be properly addressed from a political point of view, so much so that, as it turned out, than if it is primarily is nothing more than public interests vital to our country, its citizens and its productive forces.

In these terms, the Parliamentary Group of the Social Democratic Party, comes to propose, in accordance with the provisions of Articles 178 of the Constitution of the Portuguese Republic and 11 40 of the rules of procedure of the Assembly of the Republic, the establishment of a Commission for monitoring the Possible energy issues, with a term of 360 days from the date of its installation, which may be extended by resolution of the House of Assembly of the Republic and the request of the Commission itself.

São Bento Palace, October 12 2006.