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Draft Resolution No 158 /X

Constitution of an Eventual Commission

for Energy Policy

Energy issues and, specifically, strategic choices in national terms

and international have reached, in our days, very much in function of the continuous ancestry

of the prices of crude in markets and restraints arising from climate change,

an acuity and a relevance so far practically unknown-if

we excepted the episodes of the so-called "oil shocks" of 1973 and 1979,

after which, however, the price of the crude in international markets has reconducted itself to

a trend of stabilization.

So much so is that they are perfilated already, in the international technical and economic landscape, theses

that point out that the price of oil should not already be able to enter, in the future, in a

decreasing trend, finding the developed and developing countries already

paying, at this time, the prize of the " fear of lack of crude ". The time of oil

cheap is definitely over.

The evolution of the Portuguese energy landscape has set up, since the Revolution of the 25

of April 1974, appreciably, as follows:

The Decree-Law No. 502/76 of June 30 created the EDP-Electricity of Portugal, E.P.,

from the merger of several exploitative societies of the public production service,

transport and distribution of electrical energy that had, meanwhile, been nationalized

by Decree-Law No. 205-G/75 of April 16. This transfer of heritage to the

entitlements of EDP report to 13 companies, in its overwhelming majority, of large

national dimension.

The EDP, public company, stood, from here, with the monopoly of public service of

production, transport and distribution of electrical energy in the territory of the continent, the

exercise, under the law, "in a regime of exclusive and for indefinite time".

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Excepted from this scheme only the activities of production and distribution of

electrical energy for own use by entities which, at the date of the creation of EDP,

dispend already of the necessary licence or to which, heard EDP, the then Directorate General

of Electrical Services-today's Directorate-General for Geology and Energy-came to

grant.

This exception regime was the one of the then so-called "self-producers"-small

electric power producers-which has already been much-more precisely, since the Law n.

2002, of December 26, 1944, which promulgates the electrification of the Country-

pontificate in the national electric panorama-provided for in the base XXX of the said Act-,

although now limited by the content of the Decree-Law No. 20/81 of January 28, which

has come to restrict that quality " to natural and legal persons who accessorise the

produce ". That is, never as a main activity.

The Law of the Delimitation of Sectors (productive), Law No. 46/77, of July 8, vehemend "

private companies and other entities of the same nature access to activities

economic of the production, transport and distribution of electrical energy for consumption

public-point (a) of Article 4º of the Law.

However, with the publication of the Decree-Law No. 189/88, of May 27-issued to the

shelter from the legislative authorization of the Assembly of the Republic, granted by the Law n.

34/88, of April 2-, the XI Government came to derogate from the Law of Delimitation of Sectors

then beholdant, having gone on to allow the exercise of energy production activity

electric to " natural or legal persons, of public or private law,

regardless of the legal form that "assume," provided that:

a) The industrial establishment of energy production, as a whole, no "

surpass " the apparent installed power of 10000 kVA; and

b) "Foswithout" used renewable resources, national fuels or waste

industrial, agricultural or urban, or if "treated" from cogeneration facilities,

the latter without limit of power. "

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This degree, among other aspects, came to guarantee, for the 1ª time in our Country:

a) On the one hand, the obligation of EDP to absorb (buy) the energy thus

produced by the new licenced entities and,

b) On the other, a remuneration of that energy from an inviting tariff

of the investment in this type of production.

The Law No. 84/88 of July 20, came to allow " public companies, albeit

nationalized ", could, from then on," upon decree-law, be transformed

in public limited companies of public capital or majority of public capitals ".

It was open to the door for the privatization of, at least part of, the capital of a

expressive number of ex-public companies.

The Law No. 11/90 of April 5, called the "Framework of Privatizations" came to

allow privatization up to 49% of the capital of public companies.

The Decree-Law No. 7/91 of January 8, turned EDP into " anonymous society of

uniquely public capitals ", having foreseen, since soon, the possibility of"

90 days following the approval "of a" assessment of EDP's heritage, the board of

administration "submit" to the Ministers of Finance and Industry and Energy the plan

general of the cisions to be carried out ". That is, the dismemberment of the previous EDP in several

new companies with specific purposes.

The Decree-Law No. 78-A/97 of April 7 came to approve the 1 th phase of the process of

reprivatisation-of up to 49%-of the social capital of EDP, having, in particular, created the

conditions for the definition of the quantity of shares to be disposed of, in the later stages

of the process of reprivatisation, came to power being fixed by mere Resolution of the

Council of Ministers.

With the approval of the 4ª phase of reprivatisation of the capital of EDP, S.A., operated by the

Decree-Law No. 141/2000 of July 15, the State would abdicate its majority in the capital

of the company.

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Natural Gas was introduced in our energy system with the approval of the

Decree-Law No. 374/89 of October 25 and of the supplementary legislation that if

followed, covering today, as it is from the general knowledge, the great stain of the

national consumers, not least on the geographical axis between Setúbal and Braga, where if

it situates about 75% of the national population.

The project to introduce this new type of energy has made its way and today the

national market is supplied from natural gas from the Algerian gas pipeline with origin

in Hassi-R ' Mel and, by sea, from the premises of the port of Sines.

Meanwhile, in 1995, the XI Government approved a legislative package that came to restructure

the entire national electrical sector. Basically:

a) The Decree-Law No. 182/95 of July 27 laid down the foundations of

organization of the National Electrical System (SEN), passing coexist

a Public Service Electrical System (SEP) and an Electrical System

Independent (SEI);

b) The Decree-Law No. 183/95 of July 27 established the legal regime

of the exercise of the electrical energy production activity in the framework of the

Electrical Service System of Public Service (SEP) and the Electrical System no

Linked (SENV);

c) The Decree-Law No. 184/95 of July 27 established the legal regime

of the exercise of the electrical energy distribution activity in the scope

of the Public Service Electrical System (SEP) and the Electrical System

not Linked (SENV);

d) The Decree-Law No. 185/95 of July 27 established the legal regime

of the exercise of the electrical energy transport activity in the System

National Electric (SEN) and approved the bases for granting the farm

of the National Electrical Energy Transport Network (RNT);

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e) The Decree-Law No. 186/95 of July 27 laid down the provisions

relating to combined energy production and consumption activity

electrical and thermal energy, by the cogeneration process;

f (f) The Decree-Law No. 187/97 of July 27 created the Regulatory Entity of the

Electrical Sector (ERSE)-today the Regulatory Entity of the

Services;

g) The Decree-Law No. 188/97 of July 27 laid down the provisions

relating to the constitution, organization and operation of the Entity of

Planning of the Electroproducer System.

Directive No. 2001 /77/CE of the European Parliament and of the Council of September 27,

has imposed on the Member States of the European Union (EU) concrete targets for the

increment in the production of electricity from renewable energy sources-

wind, solar, geothermal, waves, tidal, hydraulic, biomass, gases from the

landfilers, of gases from the treatment facilities of waste lixos and biogas. The value of

reference marked to Portugal, regarding gross electricity consumption in the

year 2010 was 39%.

The XV Government has approved the Resolution of the Council of Ministers (RCM) No 63/2003, of

April 28, which established the guidelines of the Portuguese energy policy and, little

then the Resolution of the Council of Ministers No. 68/2003 of May 10, which defined

the broad outlines of the strategic and organisational framework of the energy sector.

RCM No 63/2003 has elected as the major objectives of energy policy:

a) Liberalization of the market;

b) the reduction of energy intensity in the product;

c) the reduction of the energy bill;

d) The improvement of the quality of the service;

e) security of supply and supply;

f) The diversification of sources and exploitation of endogenous resources;

g) The minimization of environmental impact;

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h) And the contribution to the enhancement of the productivity of the national economy.

The Resolution of the Council of Ministers No. 68/2003 of May 10 came, basically-

in the wake of the Resolution of the Council of Ministers No. 14/2003 of February 5, which

had established the strategic guidelines for the reorganisation of the energy sector

-, determine to companies with state representation in their social capital that

lead to their strategic performance in accordance with the guidelines approved by the

Government.

On June 26, 2003 the EU Directives numbers 54 and 55 were published which

set the common rules for the internal market, respectively, of electricity and

of natural gas.

Member States shall be obliged from then, in particular, to promote the

transparency in the operation of the market and companies in those two segments.

Both Directives statutory the date of July 1, 2007 as the cut-off date for which

any customer can buy the gas or electricity at the supplier of their free

choice.

The Resolution of the Council of Ministers nº169/2005, of October 24, approved the new

national strategy for energy having been retained, however, in the essentials, in the same

framework of the major strategic objectives already enshrined in the diplomas of

2003.

The new organisation and operation of the National Electrical System (SEN) has been approved

by Decree-Law No. 29/2006 of February 15, which hosted the European Guidelines

constants of Directive No 2003/54. The now dominant orientation becomes the one of the

liberalization and promotion of competition in the markets.

The Decree-Law No. 30/2006, of February 15, established the new organization and

operation of the National Natural Gas System (SNG), welcoming the new

guidelines from the EU for the sector, patents in Directive No 2003/55, which point out,

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fundamentally, for the same purposes that were traced to the market of

electrical energy.

Finally, the trilogy became complete with the Decree-Law No. 31/2006, of February 15,

which approved the new organization and operation of the National Petrolimal System

(SPN). This new legislative framework seeks to respond, in a coherent and articulated manner,

to the commitments of the Portuguese State before the International Energy Agency,

as well as before the EU in this segment of the energy market.

To the State it is up to the supplement role to ensure the security of supply of

fuels, by monitoring the market by the Directorate General of Geology and

Energy and by the definition of the obligation to constitution reserves by the agents in it

actors.

In the Green Paper of the European Commission, March 8, 2006 [COM (2006) 105 final],

on the European Strategy for a Sustainable, Competitive and Safe Energy, this

body of the Union has committed itself to present a "roadmap of renewable energy",

by which:

-An active programme of practical measures to ensure the

compliance with the current objectives of the Union in energy matters;

-Be considered the necessary targets or objectives beyond 2010, and the

nature of the same, in order to give long-term certainty to industry and to the

investors, as well as the active programmes and measures needed to make it

reality;

-A new community-related directive on heating and the

cooling, as a complement to the Community framework applicable to savings

energy;

-A detailed short, medium and long term plan is established for

stabilize and gradually reduce the EU's dependence on imported oil;

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-E are developed research, demonstration and replication initiatives

commercial in order to bring the markets closer to clean energy sources and

renewables.

In the findings, this paper points to three major objectives in the policy

energy of the EU:

-Sustainability: i) develop competitive and other renewable energy sources

energy sources and vectors with low carbon production, namely

alternative fuels for transport, ii) reduce the demand for energy in the

Europe and iii) to lead global efforts to halt climate change and

improve the quality of the local air;

-Competitiveness: i) ensure that the opening up of the energy market will bring

benefits to consumers and the economy in general by encouraging at the same time the

investment in clean energy production and energy efficiency, ii) mitigate the

impact of the increase of international energy prices on the community economy and

in its citizens and (iii) keep Europe at the forefront of energy technologies;

-And security of supply: combating growing community dependence

of the imported energy thanks to i) an integrated approach-reduction of demand,

diversification of the EU energy mix with a greater use of energy

autochthonous and competitive renewables and diversification of the sources and routes of

imported energy supply, ii) creation of the framework that will encourage

appropriate investments to cope with the increase in energy demand, iii)

best equipment from the EU to respond to emergency situations, iv) improvement

of the conditions of access to global resources for European companies and v)

guaranteed access to energy for all citizens and businesses.

In this treadmill, very recently, the Resolution of the Assembly of the Republic No. 23/2006,

of March 23 approved the Agreement between the Portuguese Republic and the Kingdom of Spain

for the Constitution of an Iberian Electrical Energy Market (MIBEL), signed in

Santiago de Compostela on October 1, 2004.

This initiative falls into a diplomatic process of cooperation between the

Portuguese and Spanish Public Administrations, which has dragged on already since 1998 to,

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progressively, overcome the existing obstacles and privilege the integration of the

respective electrical systems.

MIBEL is formed by the set of the organised and unorganised markets in the

which are carried out transactions or contracts of electric power and are denied

financial instruments that have as a reference that same energy, and yet by

others that come to be agreed by the two countries.

The creation of MIBEL implies the recognition, by both countries, of a market

single of electricity, in which all agents will have equality of rights and obligations.

With this background picture described easily if descurtain that Portugal finds itself,

nowadays, in the energy field, at a "vital crossroads" for its future model

of development, as well as of the respective sustainability.

In fact, while watching for a growth in the prices of the crude in the

international markets-which all indicate, and as already mentioned, set themselves up, each time

more, as tendentially irreversible-our Country has, in the environmental balance-

energy, on the side of the débitos, namely:

a) The persistent energy dependence of the outside in about 85% of what the

Country consome, the equivalent of about € 4,000 million / year of imports.

Since 1998 the price of the barrel of oil does not stop growing, having only between

April and October 2005 increased by more than 40%;

b) A-also persistent-high energy inefficiency index that if

estimates to correspond to a savings potential of more than 60% relatively to the

current situation and which, inevitably, is reflected in expressive form in the

competitiveness of our productive units;

c) The commitment, firmed in the framework of the Kyoto Protocol on Alterations

Climate, from, until 2012, not to increase your Gases emissions with Effect of

Greenhouse for beyond 27% with respect to 1990, the agreed reference year.

However, according to projections presented in February last by the

European Commissioner for the Environment, Stravos Dimas, based on a report by the

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European Environment Agency, Portugal should come to a level of

emission addition of 42.2%. Index this which, multiplied the

corresponding tons by the values that have been being practiced in the

emissions market, will put our Country in the embarrassment of having to pay

annually several hundred million EUROS to be able to continue the

produce;

d) The need for the fulfilment of the obligations arising from the Directive

Community No. 2001 /77/CE, of the European Parliament and of the Council, of 27 of

September, concerning the " promotion of electricity produced from sources of

renewable energy (...) ", in the terms of which Portugal is to have, in 2010, 39%

of its gross domestic consumption of electricity covered by energy produced to

from those sources. Although Portugal has been making an effort in the

sense of the promotion of this type of electric energy production-of which they are

examples the contest for the allocation of licences for the production of 1,200 a

1,500 MW of wind power, the recent project for the photovoltaic plant of 18

MW in the Serpa zone, the contest for the construction of 15 production plants

of energy, up to 100 MW of power, from the residues of forest biomass-,

José Penedos, President of the National Electrical Network (REN), guaranteed, in finals

of the past month, that the delay in relation to the estimated one should not overtake the

two years;

It is within the whole picture frame that, also recently, some investors

tried to bring to the atrium of the public discussion weighting on an eventual

option by the introduction of nuclear energy in our Country.

The described data sets, for, the occurrence of a historical, political context and

very special and sensitive economic that should not leave, in any way, to be

properly equated from a political point of view, both that, as seen, than

it is primarily about it is, of nothing more, than vital public interests for our

Country, its citizens and their productive forces.

In these terms, the Parliamentary Group of the Social Democratic Party, comes to propose, in

harmony with the provisions of Articles 178º of the Constitution of the Portuguese Republic and

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40º of the Rules of the Assembly of the Republic, the constitution of a Commission

Eventual for the Follow-Up of Energy Isings, with an effective term

of 360 days from the date of the respective installation, extended by deliberation of the

Plenary of the Assembly of the Republic and the request of the Commission itself.

Palace of Saint Benedict, October 12, 2006.

The Deputies,