The market for the production of electricity regulated in Royal Decree 2019/1997 of 26 December, for which the market for the production of electric power is organized and regulated, constitutes a basic part in the regulatory scheme of the electricity sector introduced by Law 54/1997 of 27 November of the electricity sector, one of whose goals is to achieve an improvement in efficiency through the introduction of market mechanisms in those activities that can be carried out in competitive conditions.

The experience gained since the launch of the electricity production market in 1998 has shown the need to make changes to the procedures used for the resolution of electricity production. technical restrictions. These changes are in line with a double order of requirements. On the one hand, the use of the same offers for the daily market and for the resolution of technical restrictions, a mechanism provided for in the current wording of Article 12 of Royal Decree 2019/1997 of 26 December 1997, revealed the interference in the market mechanism and inefficiencies in the allocation of resources. On the other hand, the energy corresponding to the bilateral contracts has been involved in the process of resolution of restrictions, regardless of the economic conditions of these contracts, which also leads to inefficiency in the resource allocation.

The proposed amendments have a dual objective: to reduce the interference in the normal functioning of the energy markets caused by an imperfect mechanism for the resolution of technical restrictions and, to the (a) to ensure that the bilateral physical contracts receive, in respect of the resolution of the technical restrictions, similar treatment as the other transactions in the production market. This latter aspect is of particular relevance as the possibilities for bilateral procurement have been significantly increased, following the publication of the Royal Decree Law 6/2000 of 23 June of urgent measures to intensify the competition in markets for goods and services.

In order to achieve the stated objectives, a more precise definition of the concept of technical restrictions is introduced and it is possible that the technical restrictions will be resolved by taking into account offers different from those presented for energy markets.

Furthermore, in the annex to this royal decree, procedures for the resolution of technical restrictions are laid down after the daily and intraday markets, and the problems that arise after the closure of the Intra-day markets are resolved as set out in the system operating procedures.

The existence of technical restrictions requires the modification of the programming of the resulting units of the market, in order to obtain programs of generation and consumption that meet the safety criteria established in the system operation procedures.

The object of the process of resolution of technical restrictions included in this royal decree is to make those necessary modifications on the resulting programming of the market that meet the above mentioned criteria security and have the least possible economic impact on the production and consumption units that are in it.

To facilitate the supervision of the provision of this service under the established economic conditions, the National Energy Commission is expected to be able to request information on the costs incurred in providing the service. service, in order to detect the existence of signs of restrictive practices in competition.

Furthermore, it is understood that the impossibility of carrying out the programme allocated on the market by system constraints must not give any right to compensation, in such a way that the reduction of energy has been envisaged programmed to a unit for safety reasons leads to the cancellation of the corresponding programme.

Only an auction is planned for the reduction of the required scheduled values, in order to obtain a balanced program in generation and demand, after the modifications necessary to resolve the restrictions, and the participation of the different subjects and operators in the process of resolution of restrictions is established.

On the other hand, the experience gained since 2000 with the approval of Royal Decree 1955/2000, of 1 December, regulating the activities of transport, distribution, marketing, supply and (a) procedures for the authorisation of electrical energy installations, has shown the need to make changes in order to achieve greater flexibility in the allocation of the annual amount fixed, where appropriate, in the royal decree whereby the average or reference electricity tariff of each year, for the execution of a form equivalent of the quality improvement plans in areas where the quality recorded is lower than the average, while eliminating the restriction provided for by the said Royal Decree 1955/2000 of 1 December 2000 providing for the different types of areas and those relating to the consequences of non-compliance with quality during the implementation of those plans.

In addition, in order to speed up the deadlines for putting in service of generation and transport facilities, the possibility is expressly provided for, after obtaining the administrative authorization, to start the works preparation of the site of the facilities, by the holders of the facilities.

Finally, it has been considered appropriate to make some modifications to improve the operability of the facilities type b.1.2., in the premiums corresponding to the groups a.1, a.2, d.1, d.2 and d.3 regulated in the first paragraph of the second transitional provision of Royal Decree 436/2004 of 12 March establishing the methodology for the updating and systematization of the legal and economic arrangements for the production of electrical energy on special arrangements, as well as the price of premiums for certain facilities of the types a.1, a.2 and d.1 contained in Annex VI to that royal decree.

In its virtue, on the proposal of the Minister of Industry, Tourism and Trade, in agreement with the Council of State and after deliberation of the Council of Ministers at its meeting on 23 December 2004,

DISPONGO:

Article first. Technical constraints.

Article 12 of Royal Decree 2019/1997 of 26 December, which organizes and regulates the market for the production of electrical energy, is worded as follows:

" Article 12. Technical constraints.

1. The basic daily programme shall be communicated by the market operator to the market players and to the system operator, who, in the light of the system, shall determine the technical restrictions which may affect their performance, as well as the requirements of the additional services to be provided.

For the purposes of this royal decree, a technical restriction shall mean any circumstance or incident arising from the situation of the transport network or the system which, by affecting the conditions of safety, quality and the reliability of the supply established in regulation and through the corresponding operating procedures, requires, at the technical discretion of the system operator, the modification of the programmes.

2. The procedures for the resolution of technical restrictions may result in the withdrawal of offers provided for in the programmes, as well as the modification of the programmes on the basis of other tenders, in the terms laid down by the Minister for Industry, Tourism and Trade.

3. The programme resulting from the resolution of the technical restrictions and the result of the market for supplementary services referred to in Article 14 shall be called a viable daily programme and shall be communicated by the system operator to the operator. the market and the agents acting within the market within the time limit laid down in the rules of operation of the market. '

Article 2. Approval of the procedure for the resolution of technical restrictions.

The technical restrictions resolution procedure is approved, in the terms set out in the annex to this royal decree.

Article 3. Consequences of non-compliance with zonal quality.

Article 107 (2) of Royal Decree 1955/2000 of 1 December 2000 regulating the transport, distribution, placing on the market, supply and authorisation procedures of installations of electrical energy, is worded as follows:

" 2. The annual quantity which, where appropriate, is fixed in the tariff for the implementation of the plans referred to in the preceding paragraph shall be divided between the different areas, taking into account the following criteria and order of priority:

(a) It shall apply to areas which present the greatest difference in the quality indices defined in this royal decree in relation to the national average resulting from each type of area.

(b) No area may be included in these plans more than two years. These plans must be financed by the distribution companies at an amount not less than 50% of the investments made. "

Article 4. Start of preparatory work for the installation of the site of the installations.

Article 131 (9) of Royal Decree 1955/2000 of 1 December 2000 regulating the transport, distribution, placing on the market, supply and authorisation procedures of installations of electrical energy, is worded as follows:

" 9. The approval of the implementing project constitutes the decision enabling its holder to construct the intended installation, without prejudice to the fact that, after obtaining the administrative authorisation, the project may commence the preparatory works. The location of the facilities is conditioned.

The activities that you can undertake are as follows:

a) Site value.

b) Conditioning of the land (excavations, deep foundations and pilotages).

c) Temporary facilities for the work and storage of equipment.

d) Pavements, buried systems, and internal vials.

e) Surface Cimentations. "

Article 5. Definition of the facilities of the subgroup b.1.2. in Royal Decree 436/2004 of 12 March.

Paragraph b) .1., sub-group b.1.2., in Article 2 (1) of Royal Decree 436/2004 of 12 March establishing the methodology for the updating and systematization of the legal and economic system of the The following terms shall be drawn up for the production of electrical energy under special arrangements:

" Facilities that use as primary energy for electrical generation solar radiation. Equipment using a fuel for the maintenance of the temperature of the heat-transmitting fluid may be used in these installations to compensate for the lack of solar irradiation that may affect the intended delivery of energy. The electrical generation from that fuel shall be lower, in annual computation, to 12 per cent of the total electricity production if the installation sells its energy in accordance with the option (a) of Article 22.1. This percentage may be 15% if the plant sells its energy in accordance with option (b) of Article 22.1. "

Article 6. Installations covered by the second transitional provision of Royal Decree 436/2004 of 12 March.

The first subparagraph of paragraph 5 of the second transitional provision of Royal Decree 436/2004 of 12 March establishing the methodology for the updating and systematization of the legal and economic system of the The following terms shall be drawn up for the production of electrical energy under special arrangements:

" The premiums for the groups a.1, a.2, d.1, d.2 and d.3 shall be updated annually by the Ministry of Industry, Tourism and Trade, in accordance with the year-on-year variation of interest rates, of the average tariff or Reference and price of the gas, with the application of the following formula:

(Pa + 1 + Ca + 1) = (1 + (0,25 × ΔTI + 0,5 × ΔPG + 0,25 × ΔTMR)) × (Pa + Ca).

Being:

Pa + 1: estimate, for the year in which the average or reference rate (a + 1) is calculated from the annual average final price of the production market. It will be carried out by the Ministry of Industry, Tourism and Trade.

Ca + 1: premium of each group for the year in which the average or reference rate is calculated (a + 1).

ΔTI: three-month Euribor variation for the last month closed prior to the determination of the average or reference rate for the year to + 1 with respect to the same date of the previous year (a-1).

ΔPG: average annual change in the firm natural gas rate of a consumer type of 40 Mte/year in the mobile year corresponding to the last month closed prior to the determination of the average or reference rate for the year to + 1 with with respect to the same date of the previous year (a-1).

Δ (TMR): variation of the average or reference rate between the year for which the average or reference rate is calculated (a + 1) and the current year (a).

Pa: Average annual end price of the production market in the current year (a).

Ca: premium for each group for the current year (a). "

Item seventh. Modification of the values of the premiums of type a.1 and a.2 that use as fuel fuel oil and d.1 under the second transitional provision of Royal Decree 436/2004 of 12 March.

The premiums in Annex VI to Royal Decree 436/2004 of 12 March, establishing the methodology for updating and systematization of the legal and economic regime of the energy production activity, are amended. Special arrangements, established for the facilities of the group a, types a.1 and a.2 which use as fuel oil, and those of group d and type d.1, the values of which are fixed at 3,2424 euro cents/kWh.

Article 8. Amendment of paragraph 4 of the second transitional provision of Royal Decree 436/2004 of 12 March.

Paragraph 4 of the second transitional provision of Royal Decree 436/2004 of 12 March establishing the methodology for the updating and systematization of the legal and economic system of the activity of Electrical energy production under special arrangements is amended as follows:

One. Paragraphs (e) and (f) are worded as follows:

" (e) Group d.2, of an installed power exceeding 10 MW but not exceeding 25 MW: premium = f. [(10/13) + (25 -P) /65].

(f) Group d.3, of an installed power exceeding 10 MW but not exceeding 25 MW: premium = g. (40 -P) /30. "

Two. A paragraph is added with the following wording:

" The calculation of the premiums for power plants below the limits set out in paragraphs (a), (b), (c), (d), (e) and (f) above shall be carried out in view of the installed power of the lower limit. set out in those paragraphs. "

Article ninth. Amendment of the fourth transitional provision of Royal Decree 436/2004 of 12 March.

The second paragraph of the fourth transitional provision of Royal Decree 436/2004 of 12 March establishing the methodology for the updating and systematization of the legal and economic regime of the activity of Production of electrical energy under special arrangements shall be as follows:

" To the facilities included in the other groups of Article 2 of this royal decree and in the other groups of Royal Decree 2366/1994, of 9 December, of installed power exceeding 10 MW, will not be of application provided for in Articles 19.4 and 31 until 1 January 2006. '

Article 10. Amendment of the first paragraph of Article 4 (a) of Royal Decree 2019/1997 of 26 December on the organisation and regulation of the electricity production market.

The first paragraph of Article 4 (a) of Royal Decree 2019/1997 of 26 December, which organizes and regulates the market for the production of electrical energy, is worded as follows:

" (a) To be the holder of facilities validly registered in the administrative register of electrical energy production facilities or to accredit by power of attorney its representation as a selling agent or to be registered in The Administrative Registry of distributors, marketers, and qualified consumers, as appropriate. Both records shall include a special section on which external agents are to be entered in the light of their nature. "

Single repeal provision. Regulatory repeal.

Article 107 (3) of Royal Decree 1955/2000 of 1 December 2000 regulating the transport, distribution, marketing, supply and authorisation procedures of installations is repealed. of electrical power, as well as how many provisions of equal or lower rank are opposed to what was established in this royal decree.

Final disposition first. Regulatory development.

1. Within a maximum of two months from the publication of this royal decree, the system operator shall submit to the Ministry of Industry, Tourism and Trade a proposal for the revision of the operating procedures to be carried out by the established in this royal decree. The market operator must also present to the Ministry of Industry, Tourism and Trade a proposal to adapt the operating rules of the electricity market to the provisions of this royal decree.

2. The Ministry of Industry, Tourism and Trade is empowered to develop this royal decree, as well as to modify its annex.

Final disposition second. Entry into force.

This royal decree shall enter into force five months after its publication in the "Official Gazette of the State", except as provided for in the additional provisions, which shall enter into force on the day following that of its publication in the "Official State Gazette".

Given in Madrid, 23 December 2004.

JOHN CARLOS R.

The Minister of Industry, Tourism and Trade,

JOSE MONTILLA AGUILERA

ANNEX

TECHNICAL CONSTRAINT RESOLUTION PROCEDURE

First. Programming units.

For the purposes of the resolution of restrictions, unit of sale shall mean each unit used to represent the scheduling of transactions made on the production market by the agents. enabled to sell on the daily production market.

Also, each unit used to represent the programming of the transactions made in the production market by the agents enabled to buy on the market will be understood per unit of acquisition. production journal.

Second. Phases of the process of resolution of technical constraints to the daily operating base program.

The process of resolving technical constraints to the daily operating base program will consist of two distinct phases:

1. First phase.

In the first phase, the system operator will determine the technical constraints that might affect the execution of the daily operating base program, establishing the necessary program modifications to resolve the restrictions detected, as well as the limitations affecting the units programmed in accordance with the operating procedures of the system concerned, without making the necessary programme modifications to obtain a balanced programme in generation and demand corresponding to the second phase of the process. In the case of identified restrictions on the evacuation of production, the system operator shall preferably establish a system of limitations per zone, or a set of programming units.

2. Second phase.

In the second phase, the system operator will make the necessary program modifications to obtain a balanced program in generation and demand, respecting, in any case, the limitations that it has established, according to the with system operation procedures.

Third. Units involved in the process of resolving technical constraints to the daily operating base program.

In the first phase of the process defined in the previous paragraph, all sales units shall be involved, except those representing imports from countries outside the European Union. Among the acquisition units, only those corresponding to pumping units will participate in this phase and, when there are no other means to resolve the restrictions in the Spanish production system or there is a certain risk for the national supply, the procurement units the destination of which is the supply outside the Spanish electricity system.

In the second phase of the process, the units of sale and the units of purchase corresponding to pumping units will be involved.

Fourth. Offers for the constraint resolution process.

The offers for the constraint resolution process are as follows:

1. Energy sales offerings.

Subject-holders of units participating in the first or second stage of the restriction-resolution process under the third paragraph may submit bids to increase or reduce the scheduled energy of those units, as sales or acquisition units, respectively.

They will be obliged to submit offers of sale to the subjects required to submit offers to the daily market pursuant to Article 7 of Royal Decree 2019/1997 of 26 December, for which the production market is organized and regulated. of electrical energy, and the holders of the pumping units in respect of the energy allocated to them in the daily operating base programme.

On a general basis, such offers shall be simple offers in the defined sense for the offers corresponding to the daily market.

However, the production units representing thermal power plants may submit complex tenders when they have not been dispatched to the daily operating base programme. These complex offerings will consist of four terms:

a) revenue to keep the drive coupled for an hour.

b) revenue per unit of energy produced.

c) revenue from cold start.

d) revenue from hot start.

For these purposes, the hot start shall be understood to be less than five hours after the last hour with the assigned schedule, and any start that does not meet this condition shall be considered cold start. Similarly, a unit shall be deemed to remain coupled when its production is greater than zero in that hour.

The sales offers referred to above will be submitted to the system operator, once the result of the daily market is known and before the technical restrictions that could affect the execution of the daily program are known. operating base.

2. Power purchase offerings.

The subject holders of units participating in the second stage of the restriction-resolution process under the third paragraph will be required to submit to the system operator offers for the reduction of the scheduled power in its sales units. The same subjects may present, in respect of their pumping acquisition units, bids for the increase of the programmed energy.

Such offers will be simple offers in the defined sense for the offers corresponding to the daily market and will be presented once known the result of the daily market and before the technical restrictions are known that might affect the execution of the daily operating base program.

Fifth. First phase of the process of resolution of technical constraints to the daily operating base program: modifications by security criteria.

1. The system operator shall determine the changes to be made to the daily operating basis strictly necessary to meet the security criteria laid down in the system operating procedures. In the case where there are several technically equivalent modification alternatives, the lowest cost shall be adopted for the system.

2. The reduction of energy, both sold and acquired, in respect of the daily operating base programme shall be considered as cancellations of the corresponding programme, and shall not generate any right of recovery or obligation to pay for such energy. In the case of transactions carried out on the daily market, the payment entitlements or payment obligations corresponding to this energy shall be without effect, and the parties to the bilateral physical contracts shall be subject to the provisions of this Directive. In the case where there are several units whose decrease has the same effect on the system, the energy to be lowered shall be pro rata. In the latter case, the units which, when having real-time load reduction systems, contribute to the resolution of the technical restriction, shall not be considered for energy equivalent to that contribution.

3. The planned, and actually produced, increases in energy on the daily basis of operation shall be remunerated at the price of the tenders expressly submitted for this service in accordance with the fourth paragraph.

4. In the case of the use of complex tenders in accordance with the provisions of paragraph 1, 1 shall be deemed to be entered by the resolution of restrictions, provided that the scheduled energy is delivered, the amount which is is lower between the values that are defined below:

a) The result of applying the complex offer to the constraint-assigned program.

b) The result of applying the complex offer to the final schedule of the unit and deducting from it the income earned by the unit in the intraday markets in which it participated. For these purposes, any starts that have not actually been produced shall not be considered.

Sixth. Second phase of the process of resolving technical constraints to the daily operating base programme: rebalancing of production and demand.

1. After making the programme modifications described in the previous paragraph, the system operator shall cancel the generation programme for bilateral contracts whose demand has been reduced in the first stage.

2. Once the operation described in the previous paragraph has been carried out, the system operator shall determine the modifications to be made to the daily operating base programme in order to obtain a balanced programme for generation and demand, following the inclusion of the amendments set out in the first stage described in paragraph 5, with the view that these amendments have the least possible economic impact.

3. In the event of a need to resolve an excess demand at this stage, the system operator shall determine the units that will be modified by the system in accordance with the specific sales offers received.

4. In the event that an excess generation needs to be resolved at this stage, the system operator will determine the units that will be modified by the system according to the specific purchase offers received.

5. Units whose programme is modified at this stage shall bear a right of recovery or an obligation to pay, as appropriate, at the price of the corresponding bid submitted and effectively allocated.

Seventh. Allocation and settlement of costs arising from the process.

The settlement of costs arising from the process shall be carried out by the system operator in accordance with the fifth and sixth paragraphs.

Costs due to programme modifications made in the process of resolution of technical constraints will be borne by the holders of acquisition units, in proportion to their measured consumption in the period of corresponding programming.

Except for this cost allocation are the pumping acquisition units and the acquisition units whose destination is the supply outside the Spanish electricity system.

Eighth. Monitoring.

Without prejudice to the provisions of the additional provision of Law No 34/1998 of 7 October of 7 October of the hydrocarbon sector, in conjunction with Title X of Law 54/97 of 27 November 1997, of the Electricity sector, the National Energy Commission, in the exercise of the twelfth function of the 11th additional provision, may request the information it deems necessary. When it detects the existence of signs of restrictive practices in competition, it shall bring it to the attention of the Competition Defence Service, and shall provide all the facts within its scope and, where appropriate, a non-binding opinion of the qualification that they deserve such facts.

Ninth. Restrictions on the intraday market.

The technical restrictions resulting from the appeal on the intraday market shall be resolved by the system operator by selecting the withdrawal of the appeal from the set of tenders which resolve the identified restrictions and those other additional offers necessary for the rebalancing of production and demand, in both cases on the basis of the economic precedence of the intraday market reported by the operator of the market.

10th. Other restrictions.

The technical restrictions and incidents that occur after the intra-day market closure will be resolved in the terms established for such situations in the corresponding system operating procedures.

The procedures for operating the system may also establish how many technical and instrumental rules are necessary for the implementation of the provisions of this Annex.