Law 54/1997, of 27 November, of the electricity sector, implies the abandonment of the model of unified exploitation and the establishment of the foundations of all the normative development of a new model based on the principles of objectivity, transparency and free competition. The new scheme aims to achieve an improvement in efficiency through the introduction of market mechanisms in those activities which can be carried out under competitive conditions, maintaining the quality of supply and without forgetting the environmental protection.

The basic piece in the new regulatory scheme is the electricity production market. The organized part of this market, in which electricity offers and demands are crossed, requires for its proper functioning a rigorous definition of its structure and organization as a complement to the organized part, having to regulate also the conditions under which exchanges between the various subjects of the system may take place by means of other forms of bilateral procurement outside the market. This Royal Decree seeks to comply with this objective, by collecting the basic rules for bilateral procurement on the margins of the organized market and, for the organized market, establishing the general conditions of access for the subjects to the different segments of the organised market, designing the necessary institutional infrastructure and setting the basic operating standards.

From the point of view of its structure, the organised market includes three tranches: The daily market, the intraday market and the complementary services market. The daily market collects the purchase and sales transactions corresponding to the production and supply of energy for the next day, the intraday market is the market that serves as a mechanism of adjustment to the daily programming and the market In addition, the services provided are essential to ensure the supply of energy under the conditions of quality, reliability and safety. The Royal Decree sets out the conditions of access and the way of operating in each of them, pointing out the particularities in terms of its structure and operation, according to its differential characteristics.

From an institutional point of view, on the margins of the National Commission of the Electrical System, as the regulator of the electrical system that monitors the smooth functioning of the entire sector or the Ministry of Industry and Energy, as the main regulatory body, the functioning of the market is supported by two key organisations: the market operator and the system operator. The market operator is responsible for the economic management of the system. This includes the acceptance and the appeal of the tenders and the completion of the liquidation operations. The system operator is responsible for technical management, i.e. activities related to the management of energy flows, taking into account exchanges with other interconnected systems, including determination and the allocation of transport losses and the management of complementary services. The Royal Decree points out the roles to be played in their respective areas of action and the procedure for collaboration between the two, which are of major importance for the smooth functioning of the production market.

Also, in order to collaborate in the management of the market from the institutional point of view, the figure of the Committee of Market Agents, the collegiate body in which all the intervening agents will have representation, is developed. which has as its mission the control and monitoring of the economic management of the system.

The Royal Decree also provides for the conditions under which exchanges between agents on the margins of the organised market and their relationship with transactions on the organised market, as well as regulation, should take place. In particular, the private aspects of intra-Community and international trade.

Finally, the Royal Decree incorporates the own safeguards of the gradual implementation of a new system, in order to allow a gradual adaptation of the system to the new regulatory scheme.

This Royal Decree is of a basic nature in accordance with the exclusive powers of the State referred to in paragraphs 13.a and 25.a of Article 149.1 of the Constitution.

In its virtue, on the proposal of the Minister of Industry and Energy, in agreement with the Council of State and after deliberation of the Council of Ministers at its meeting on December 26, 1997,

D I S P O N G O:

CHAPTER I

General provisions and market agents

Article 1. Object.

This Royal Decree aims to establish the organization of the market for the production of electric power and to regulate the transactions that are carried out in it, as well as to regulate other modalities of contracting that have for the purpose of the purchase and sale of electrical energy.

Article 2. Production market.

The electricity production market is integrated by the set of commercial transactions in the purchase and sale of energy and other services related to the supply of electrical energy.

The electricity production market is structured in a daily market and complementary services market, integrating also in the physical bilateral contracts.

Additionally, there will be an intra-day character programming adjustment market, which is called the intraday market.

Article 3. Agents acting on the production market.

1. Subject to the consideration of production market players, the subjects involved in the development of activities for the supply of electricity when, in accordance with Article 9 of Law 54/1997 of 27 November of the electricity sector, have the consideration of producers, self-producers, who deliver or take energy from other external systems, distributors, marketers and qualified consumers.

For the purposes of this Royal Decree, those who deliver or take energy from other external systems shall be referred to as external agents.

2. Qualified consumers are those whose consumption by installation or by point of supply is equal to or greater than the amount temporarily applicable, in accordance with the transitional provision of Law 54/1997 of 27 December, from the electrical sector.

The holders of rail transport facilities, including the metropolitan, will always have the consideration of qualified consumers.

To qualify self-producers as qualified consumers, they will be used for their effective consumption, taking into account both the energy supplied by third parties and the energy from their own production.

Article 4. Requirements.

To acquire the status of market agent, the subjects referred to in Article 3 (1) shall meet the following conditions:

(a) To be the holder of facilities validly registered in the Administrative Registry of Electrical Power Production Facilities or to be registered in the Administrative Registry of Distributors, Dealers and Consumers Qualified, as appropriate. Both records shall include a special section on which external agents are to be registered in the light of their nature.

Registration in the Register will be requested by the holders of authorizations to the grantor of the same. Where the authorization has been granted by an Autonomous Community, the Autonomous Community shall, within a maximum of one month, transfer the copy of the authorization and the application to the Directorate-General for Energy of the Ministry of Industry and Energy, in order to make it possible to formalize its registration in the corresponding Register. The registration shall be certified to the person concerned and to the Autonomous Community.

In the case of qualified consumers, their registration in the corresponding Register will be requested from the Autonomous Administration where their facilities are located, providing certification of their consumption issued by the company power supply, proceeding below in accordance with the terms set out in the preceding paragraph.

(b) To have expressly adhered to the rules and conditions of operation and liquidation of the production market in the corresponding contract of accession, which will be unique, and will have to be approved by the Ministry of Industry and Energy, after report of the National Commission of the Electrical System.

(c) To provide the market operator with sufficient collateral to cover the economic obligations that may arise from its performance as an electrical energy acquirer on the market, in the terms set out in the contract of accession.

The non-provision of this guarantee will prevent the subject from intervening in the production market.

Article 5. Economic and technical management of the production market.

The market operator, as responsible for the economic management of the system, assumes the management of the system of offers for the purchase and sale of electrical energy with the functions referred to in Article 27 of this Royal Decree.

In any case, the market operator shall perform its functions in a coordinated manner with the system operator as responsible for the continuity and security of the electrical power supply in execution of the functions to which it is refers to Article 31 of this Royal Decree.

The market operator and the system operator may in no case have shareholding in any company that performs any or some activities intended for the supply of electrical energy, nor will they be able to participate in the capital of the other operator.

CHAPTER II

Electric Power Production Market Organization

Article 6. Daily production market.

The daily production market is the one in which the power purchase and sale transactions are carried out for the next day.

The daily market contracting sessions are structured in programming periods equivalent to a natural time, considering as programming horizon the 24 consecutive programming periods.

Article 7. Agents of the daily production market.

1. The following agents may submit bids for the sale of electricity in the daily market:

(a) The holders of production units whose installed power is more than 50 Mw and those which are subject to the scheme provided for in the Royal Decree of 27 November 1997, of the electricity sector, to the entry into force of Law 54/1997 of 27 November 1997 Decree 1538/1987 of 11 December 1987 on the determination of the rates of the public service companies which will be obliged to make sales offers for each programming period, except in the case of a derogation provided for in Law 54/1997 of the electricity sector, and in particular Article 25 thereof.

(b) The holders of production units whose installed power is less than or equal to 50 Mw and greater than 1 Mw.

(c) Self-producers for the excess electricity they would have, in accordance with Article 25.3 of Law 54/1997, of the electricity sector.

d) The authorized external agents.

2. Producers, distributors, marketers and qualified consumers may submit bids for the purchase of electricity in the daily market.

In the case of qualified consumers, they will be able to contract on the market the whole of their supply or that part of the supply that they did not have covered by their contract of supply at tariff.

3. The offers of any agent may be submitted by those who represent the headlines.

Article 8. Submission of energy sales offers.

1. The market players may submit bids for the sale of electricity for each programming period, in the timetable set out in the rules of operation of the market. These tenders shall be of a firm commitment after the time limit for admission has been exceeded.

Power sales offers shall include at least the price and quantity offered, the identification of the agent performing them and the production unit to which it relates.

Production unit shall mean each thermal group, each pumping station, and each hydraulic or wind management unit in terms to be determined by Ministerial Order.

Also, by ministerial order, other conditions, both technical and economic, may be established, which may be incorporated into the supply of electric power by the agents.

2. The format and means of communication of tenders shall be laid down in the contract of accession of the market operator.

Article 9. Submission of energy acquisition offers.

1. Market players may submit bids for the purchase of electrical energy for each programming period, in the timetable set out in the rules of operation of the market. These tenders shall be of a firm commitment after the time limit for admission has been exceeded.

Power acquisition offers shall include the amount of energy demanded, the identification of the agent, and the programming period to which the offer refers.

These takeover bids may also include price of the energy demanded. In this case, if the offer is not married, in accordance with the procedure laid down in Article 10, no electricity supply shall be produced.

The takeover bids submitted by the distributors must be made, having deducted from their demand the provision of energy from installations under special arrangements which could be poured into their network, if not they have chosen to go to the daily market.

2. The format and means of communication of tenders shall be laid down in the contract of accession of the market operator.

Article 10. Appeal of tenders.

Once the offers of sale or purchase of electricity would have been accepted by the market operator and the deadline for its submission would have been closed, the appeal will be made for each period of programming, starting from the cheapest offer to match the demand.

The result of the appeal will determine the marginal price for each programming period, which corresponds to the supply of electricity sold by the last unit of production whose acceptance has been necessary to meet the expected demand, as well as the energy committed by each of the agents according to the accepted and married offers of purchase and sale. The result of the appeal shall also include the order of economic precedence of all the electrical energy production facilities on which the tender was submitted, even if they have been left out of the appeal.

Article 11. Communication of the outcome of the appeal.

1. On appeal, the market operator shall communicate the result of the appeal to the system operator and to the agents who have intervened in the relevant section as an electricity purchase or sale offeror.

In the light of the appeal, the agents shall communicate to the market operator the production of the production units for each unit of production, corresponding to the married offers, and the inputs to be made in each of the nodes. connection to the network to meet accepted demands.

2. With that information and with that information which would have been supplied to it in relation to the execution of the so-called physical bilateral contracts referred to in this Royal Decree and to international exchanges, the market operator determine a daily operating base program.

3. An agent may inform the market operator, in the form and time limits laid down in the rules of operation of the market, of any claims which may be appropriate.

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 shall, in the light of the system, 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, technical restriction shall mean any limitation resulting from the situation of the transport network or the system so that the supply of electrical energy can be carried out in the security, quality and reliability conditions to be determined in accordance with the rules and procedures of operation.

2. In order to remedy the technical restrictions, the system operator shall agree with the market operator to withdraw the appeal from the sales offers which are accurate and the entry of other tenders submitted at that meeting, in accordance with the order of economic precedence. The production units which would have been operating as a result of these technical restrictions shall receive the remuneration corresponding to the offer which they would have submitted for those periods of production. programming in which they work.

3. The programme resulting from the incorporation of these new transactions 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 market operator and market players within the time limit set out in the rules of operation of the market.

Article 13. Complementary services.

1. Complementary services are understood to be those that are necessary to ensure the supply of electrical energy under the conditions of quality, reliability and safety.

Without prejudice to others that may be established, they will have the consideration of complementary services of regulation, tension control and the replenishment of the service.

Complementary services may be mandatory or potestative. The system operator, after reporting by the National Commission of the Electrical System, will determine which complementary services are to be considered mandatory and which are to be considered as potestative services.

2. Mandatory complementary services shall be considered to be those with which any installation is necessary to ensure the proper provision of the service.

The mandatory complementary services will have to be contracted directly by the holders of the facilities required to provide them, in the case of not having the appropriate equipment. The contract shall be communicated to the operator of the system, who shall certify monthly the complementary services actually provided for the performance of the contract and shall be settled by the parties at the price they have agreed.

Article 14. Complementary services market.

1. The complementary services market shall include all those which, having a potestative nature, the system operator considers necessary to ensure the functioning of the system referred to in each session of the production market.

Once the daily base programme is known, and on the same day on which the relevant daily market session was held, the holders of facilities providing complementary services of a potential nature may be make offers to the system operator for each programming period, including the concepts, quantities and prices offered.

2. In the light of the tenders, the system operator shall determine the marginal price of the complementary services for each programming period with the same procedure as the daily market, as well as the order of entry into functioning of the facilities concerned, incorporating the result in the definition of the viable daily programme, in accordance with the provisions of Article 12 of this Royal Decree.

3. The remuneration of the additional services provided to those whose tenders have been married shall be made at the marginal price and on the basis of the service actually provided.

Article 15. Intraday market.

1. The intra-day market is intended to cater for adjustments that may occur in the supply and demand for energy after the viable daily programme has been established.

2. They may submit tenders for the sale or purchase of electrical energy on the intraday market all the agents authorized to present offers for the sale of electrical energy in the daily market and those agents, from among those authorized to submit takeover bids on the daily market, which would have been involved in the relevant session.

3. Established the daily viable programme, the market operator shall open intra-day market sessions which shall correspond to each of the programming periods which have been married in the daily market.

4. Open the intra-day market session, offers of sale or purchase of electric power can be presented in the same terms as foreseen for the daily market and will be realized with the format and through the means of communication that set out in the accession contract.

In no case will the offers presented in this market be superimposed in the time to which they were presented in the daily market.

The sales and acquisition offers presented on the intraday market will have a firm character once accepted by the market operator and the corresponding session is closed.

Article 16. Appeal on the intraday market.

During each of the sessions, the market operator shall proceed to the appeal of the tenders submitted for each programming period, on the same terms as provided for in Article 10 for the daily market.

On the basis of the appeal of each session, the market operator shall communicate the outcome of the session to the system operator and the agents who have been involved in that session.

The cross-appeal of the intraday market shall, in any case, respect the order of entry into operation derived from the viable daily programme.

Article 17. End time programming.

1. The final hourly schedule is the result of the aggregation of all the firm transactions formalised for each programming period as a result of the daily viable programme and the intraday market appeal.

2. Generation and consumption deviations arising from the closure of the final hourly schedule shall be managed by means of a diversion management procedure and the provision of complementary tertiary and secondary regulation services.

Article 18. Emergency situations.

1. In the case of alert and emergency situations, the system operator shall arrange for the implementation of the procedures laid down in accordance with Article 31 to preserve the security of the system. Strictly necessary operations must be carried out with technical and economic criteria which allow the least possible cost, through transparent, objective and non-discriminatory procedures.

2. The Ministry of Industry and Energy shall establish the criteria for the calculation of the economic effects of the measures taken by the system operator in these emergency situations.

CHAPTER III

Bilateral procurement systems

Article 19. Physical bilateral contracts.

1. Qualified consumers or external agents may formalise with producers or external agents physical bilateral contracts for the supply of electrical energy. The subjects who formalize these contracts must be registered in the corresponding Administrative Registry, according to their nature.

2. The production units which are affected to the performance of these contracts shall be exempt from the obligation to submit tenders on the production market, on the part of their generated energy linked to the performance of the contract.

Article 20. Characteristics of the contracts.

1. Physical bilateral contracts shall identify the production units concerned with their compliance and the intended consumption and shall have a minimum duration of one year.

The bilateral physical contract will have to determine the contracting party that will be obliged to satisfy the payments corresponding to the complementary services, for tolls, for permanent costs of the system, for the costs security and diversification, including those relating to the nuclear moratorium and those other costs which may be determined in accordance with Law 54/1997 of the electricity sector and its implementing rules.

2. Contracts of this nature shall be communicated by the parties to the market operator and to the system operator, indicating in detail the time periods in which the contract is to be executed and the supply points and consumption, in order to be taken into consideration for the determination of the daily programs.

3. The holder of a production unit which has concluded a bilateral physical contract shall, at the request of the system operator, participate in the market for supplementary services and shall, in any event, comply with the restrictions which it has can establish, without any discrimination in respect of the other supplies being made.

Article 21. Other modes of procurement.

Contracts may also be concluded between qualified consumers and the other market players who, having as their object the supply of electricity through the production market, determine their liquidation. either at the market price or for differences in relation to that price.

The contracts of these characteristics to be subscribed must be communicated to the market operator specifying the time period to which they relate, as well as the subject with which the liquidation of the market of production.

CHAPTER IV

Settlement of transactions made in the electricity production market

Article 22. Liability for settlement.

1. It is for the market operator to be responsible for the economic management of the system, with the cooperation of the system operator, to carry out the settlement and communication of the payment obligations and the charging rights to which the market is of electricity production.

2. Settlement shall mean the process by which the market operator determines the price and final amount to be paid by the buyer and the price and amount to be paid by the sellers.

Article 23. Final price of the electrical energy.

For the purposes of settlement, the price of the electricity to be paid by the buyer and to be perceived by the seller shall incorporate:

(a) The price obtained from the appeal of the offers and claims on the daily market, the price of the deviations resulting from the technical restrictions included in the daily viable programme and the price obtained from the appeal in the Intraday market.

b) The cost of the power guarantee.

(c) The price obtained from the appeal of the offers and claims in the market for complementary services.

d) The corrections to be made as a result of deviations or alterations of the final time schedule.

Article 24. Power warranty cost.

1. The power guarantee fee is intended to provide an economic signal for the permanence and installation of generation capacity in the electrical system, in order to achieve an adequate level of security of supply.

The Ministry of Industry and Energy shall establish by ministerial order and after report of the National Commission of the Electrical System, the procedure of remuneration and imputation of the guarantee of power, specifying the the conditions and the subjects who will be obliged to pay and who have the right to recover, taking into account the permanence and the management and installation of generation capacity in the system.

2. The system operator shall provide the market operator with the data necessary to establish the charges and payments related to the concept of the power guarantee.

Article 25. Settlement procedure and time limits.

1. In the case of electrical energy supplies which are considered in the programming horizon of the daily market, the system operator shall provide the market operator with information relating to the production and consumption. performed, identifying the amount of energy, agents, and other price components that are required.

For these purposes, the measures obtained in accordance with the provisions of the Regulation governing the points of measure, as well as in the operating procedures and rules of operation of the established market, shall be considered.

2. With the data received and with the cooperation of the system operator, the market operator shall determine the payment entitlements and the payment obligations for each programming period and shall communicate it to the market players in a maximum three-day period.

Known as the result of the liquidation, the agents may, within three days, present the claims they deem appropriate.

The market operator shall have within three working days to resolve the claims submitted, which shall be completed by a provisional account entry in a register which shall have the effect for each Participating agent in the electricity production market.

3. On a monthly basis, the market operator shall send a comprehensive credit or credit note for the rights and obligations relating to that period to agents who have carried out transactions on the production market.

Before the 15th day of each month, the required payment must be made in the bank account designated by the market operator.

4. The market operator shall notify the account holder of the account in which the payments are to be made by the sellers to whom the charge corresponds and the amount to be paid to each of them.

Article 26. Defaults.

1. In the event that a buyer fails to fulfil its obligation to pay, the market operator may execute the securities incorporated in the terms provided for in the contract of accession.

2. In the case of delays in payments, the amounts due shall bear interest for late payment at the rate laid down in the contract of accession.

3. In the case of non-payment of a buyer's payment, the amount due shall be a proportion of the sales rights of the sellers, and the debt shall be settled once the debt has been settled.

CHAPTER V

The market operator

Article 27. Market operator functions.

1. It is up to the market operator, as responsible for the economic management of the system, to carry out all those functions which derive from the functioning of the daily market and the intra-day market for the production of electrical energy. as assigned by the present Royal Decree on settlement.

2. In particular, in addition to the functions specifically mentioned in Article 33 of Law 54/1997, of the electricity sector, it corresponds to the market operator:

(a) The definition, development and operation of the IT systems needed to ensure the transparency of transactions on the production market.

(b) The submission for approval of the amendments to the contract of accession referred to in paragraph (b) of Article 4.

(c) The requirement for market players to credit the fulfilment of the conditions referred to in Article 4 of this Royal Decree.

(d) to make available to market players, within a maximum period of 30 days, the information relating to married transactions and the non-married offers of sale and acquisition in each of the sessions.

e) Publish to national media that information which, having a public character, is considered to be of general interest.

f) Ensure the confidentiality of confidential information that has been made available to you by market players, in accordance with applicable rules.

g) Adopt measures and agreements that are necessary for effective compliance with the limitations of direct or indirect participation in the company's capital, as set out in Article 33.1 of Law 54/1997, of the electricity sector, including by means of the purchase and sale, for the interested party, of the decisive participation of the non-compliance with that legal provision.

(h) Communicate to the competent authority any behaviour of market players which may result in a change in the proper functioning of the market.

i) Develop and publish the market operator code of conduct.

j) How many other functions are assigned to you by the Law of the Electrical Industry Act.

3. The market operator may propose to the Ministry of Industry and Energy for approval the rules of operation of the production market which it considers appropriate for the best execution of the provisions of Law 54/1997, of the electricity sector, the present Royal Decree of development, who will decide upon the report of the National Commission of the Electrical System.

Article 28. Committees of market players.

1. The Committee of Market Agents is set up as an organ which aims to monitor the functioning of the economic management of the system and the proposal for measures that can lead to a better functioning of the production market.

2. The following shall be specific functions of the Market Agents Committee:

a) Monitor the functioning of the production market and the development of the processes of appeal and settlement.

b) To know, through the market operator and the system operator, the incidents that have taken place in the operation of the market and the system.

c) Propose to the market operator the operating rules that may be in a better market operation.

d) Advise the market operator in resolving the incidents that occur in the hiring sessions.

e) Obtain regular market operator information on those aspects of the economic management of the system that will enable the level of competition in the electricity production market to be analysed.

f) Those other functions assigned to you by the regulations of the development of Law 54/1997, of the electrical sector.

Article 29. Composition of the Market Agents Committee.

1. The Market Agents Committee shall be composed of the following members:

a) Five representatives of the producers in general.

b) A representative of the autoproducers.

c) Two representatives of the producers under special arrangements.

d) Four dealer representatives.

e) Two representatives of marketers.

f) Two representatives of qualified consumers.

g) A representative of the market operator.

h) A system operator representative.

The Chairman and Secretary of this body shall be elected by the Committee of Market Agents among its members.

2. The Vowels shall be appointed by the most representative associations of the subjects of the Committee, taking into account the volume of energy they have negotiated, which shall inform the market operator to formalize their appointment for a period of time. Two years.

The membership of the Market Agents Committee shall not be remunerated.

3. The Committee of Market Agents shall adopt its rules of procedure, in which the frequency of the sessions, the procedure for convening and the procedure for the adoption of agreements shall be established.

CHAPTER VI

The system operator

Article 30. System operator functions.

1. It is the system operator, responsible for the technical management of the system, the performance of all those functions that are derived from the operation of the electricity production market, as well as those assigned to it by the present system. Royal Decree on liquidation.

2. In particular, in addition to the functions specifically mentioned in Article 34 of Law 54/1997, of the electrical sector, it is for the system operator:

(a) The drawing up and publication of a periodic balance sheet of forecasts for the generation and transport capacities that can be connected to the network, the need for interconnection with other networks and the potential capacity of the transport, as well as the demand for electricity.

b) Propose to the Ministry of Industry and Energy the needs of the transport network to ensure the reliability of the supply, indicating the development and reinforcement plans deemed necessary.

(c) Estimate, calculate and publish the coefficients of losses in transport knots as a guideline, with different periods and for different operating scenarios.

d) Calculate the transport losses and the loss ratios in the transport network knots by horariously.

e) Evaluate the maximum capacity of interconnection of the electrical system and determine the available capacity for commercial use.

f) Coordinate with the operators of other countries the information regarding the international transactions that are being carried out.

g) Establish in coordination with carriers, producers and distributors the plans of maneuver for the replacement of service in the event of general failures in the supply of electrical energy and to coordinate and control their execution, affecting any element of the electrical system that is necessary. This will be done in accordance with the rules laid down for this purpose and, in its absence, with criteria of general acceptance known to the agents and justifying their actions after the agents concerned, the Commission National of the Electrical System and the Competent Administration.

(h) to collect and retain the operating information that it requires in the performance of its functions and which it requires the market operator and the regulatory bodies, under the conditions set out in this Royal Decree and the provisions that develop it.

i) To provide the various actors with the measures of energy exchanges, in accordance with the provisions of the Measure Points Regulation and any other applicable regulations.

j) Provide agents with information regarding potential problems that may arise in international interconnections.

k) Ensure the confidentiality of information of a confidential nature that has been made available to you by market players, in accordance with applicable rules.

(l) Adopt the measures and agreements that are necessary for effective compliance with the limitations of direct or indirect participation in the company's capital, as set out in Article 33.1 of Law 54/1997, of the electricity sector, including by means of the purchase and sale, for the interested party, of the decisive participation of the non-compliance with that legal provision.

m) Analyze requests for connection to the transport network and condition, where appropriate, access to the network where sufficient capacity is not available or the reliability and safety criteria set out in the Directive are not met. Present Royal Decree.

n) How many other functions are assigned to you by the regulations of the development of Law 54/1997, of the electrical sector.

Article 31. Operating procedures.

1. The system operator shall submit for approval by the Ministry of Industry and Energy the technical and instrumental operating procedures necessary to carry out the appropriate technical management of the system, who shall decide Report of the National Electrical System Commission.

2. The operating procedures shall include at least the following aspects:

a) Conditions of connection to the transport network.

b) Safety analysis in annual coverage.

c) Conditions for the installation and operation of measurement and control equipment.

d) Security analysis in the coverage of the short term.

e) Managing international interconnections.

f) Demand forecasts.

g) Exploitation information.

h) System programming.

i) Coordination of maintenance of production-transport facilities.

j) Exchange of information between agents.

k) Conditions of operation of the production and transport system and criteria of quality, reliability and safety.

l) Allocation and determination of transport losses.

m) Managing each of the complementary services.

n) Alert and emergency situations.

n) Criteria for network determination under technical management.

Article 32. Transport network under the technical management of the system operator.

1. The network, under the technical management of the system operator, shall consist of the following facilities:

(a) The installations of the transport network with voltage equal to or greater than 220 kv.

b) The facilities of the network of lower voltages, whose operation has a significant impact on the transport network.

c) The facilities of the lower voltage network, whose operation has a significant impact on the generation by causing restrictions on the supply of energy.

d) International interconnections.

2. The system operator shall keep the updated list of facilities included in the network under the responsibility of the system operator.

Article 33. Obligations of the owners of electrical installations in the area of the operation of the system.

In the scope of the system operation, it will be obligations of the power generators and the owners of transportation and distribution facilities, in addition to those specifically mentioned in the Law of the sector electrical, the following:

(a) Install, operate and properly maintain the facilities in charge of them, while respecting the applicable regulations.

(b) Manipulate the facilities in your charge in accordance with the instructions given by the system operator.

(c) Inform the system operator of the maintenance plans of the facilities to be carried out in accordance with the procedure determined by the system operator. In the case of installations belonging to the network under the responsibility of the system operator, the system operator shall be required to authorise the discharge.

d) Report on the technical characteristics of their installation and their maximum capacities, both for energy management and for the provision of complementary services.

e) Submit to the inspections in the terms provided for in this Royal Decree.

f) Inform the system operator of production and consumption programs by electric knots.

g) Facilitate third-party access to the use of the transport and distribution networks in accordance with the rules to be established for this purpose.

h) How many other obligations are determined as the development of this Royal Decree.

CHAPTER VII

intra-Community and international trade

Article 34. Energy exchanges.

1. Market players may freely establish intra-Community and international energy exchanges in accordance with the conditions laid down in this Royal Decree and its implementing provisions.

2. Any producer, distributor, consumer or marketer outside the Electricity System may request the Ministry of Industry and Energy to authorize its participation as an external agent in the electricity market.

3. Authorizations for intra-Community external agents shall be granted in accordance with the Ministry of Industry and Energy, which may be refused only if the country of establishment of the external agent does not fulfil the condition of reciprocity, in accordance with Article 13.2 of Law 54/1997, of the electrical sector.

4. Once the authorization of the Ministry of Industry and Energy has been obtained, the external agent may participate in the market for the production of electrical energy as any agent of the market, provided that it is registered in the Administrative Registry It shall adhere to the rules and conditions of operation of the market established by the market operator and the system operator, accept the special conditions established by the Ministry, due to its status as a subject outside and comply with the required regulations.

5. Intra-Community imports may be channelled through any of the forms of procurement that are authorised in the development of Law 54/1997, in the electricity sector.

6. The Ministry of Industry and Energy shall determine the technical and economic aspects of the integration of intra-Community and international trade in the production market with non-discriminatory, objective and transparent criteria. with regard to national agents.

7. The system operator will be responsible for coordinating with the operators of other countries, information on the international exchanges that are being carried out, as well as the measurement of the energy flows through international interconnections. In such a task, the system operator shall act in coordination with the market operator, which shall transmit the resulting information to it.

8. Pursuant to Article 10.2.a) of Law 54/1997 of 27 November 1997 on the electricity sector, the Government may prohibit specific, even intra-Community export operations involving a certain risk for the supply of electricity. of electrical energy.

Article 35. Remuneration scheme applicable to intra-Community and international trade.

1. The remuneration scheme applicable to intra-Community and international trade must be developed by ministerial order, in compliance with the principles of competition, transparency and non-discrimination which must govern the production of electrical energy.

2. The charges and payments corresponding to the energy exported and imported respectively shall be based on similar mechanisms applied for domestic market players, by means of their assimilation to a sale or purchase of electricity.

3. Any national consumer, irrespective of the origin of the energy received, shall pay the costs for power guarantee, security costs, supply and permanent costs in the amount that has been established.

4. The persons who carry out the export of electrical energy shall pay the tolls and the permanent costs of the system in proportion to them.

5. Payments and charges relating to the power guarantee shall be made as specified in this Royal Decree and in the implementing rules to be given to the effect.

Article 36. Support energy exchanges and deviations between systems.

The system operator will be able to manage the performance of short-term exchanges when these have as their object the support between electrical systems to maintain the quality and safety of supplies in terms of the to determine the Ministry of Industry and Energy.

Article 37. Capacity of interconnections.

The system operator will be responsible for evaluating, for each programming period, the maximum capacity of each of the national electricity system interconnections with other electrical systems. Such information must be public.

2. All intra-Community and international transactions will be subject to the technical restrictions of the interconnection and system lines, restrictions which will be identified and assessed by the system operator to ensure the quality and security of supply within the electrical system. The procedure for applying the technical restrictions, where appropriate, shall be determined by ministerial order.

3. The Ministerial Order shall include at least the following aspects:

(a) The calculation of the available capacity, taking into account the general criteria of reliability, quality and safety of the applicable operating and transport regulations and in particular the security needs of the system peninsular.

(b) The procedure for allocating the available network capacity under conditions of saturation, by means of objective and transparent criteria and by applying market mechanisms as far as possible.

4. In order to facilitate the planning of the extension of international interconnections, the system operator shall draw up a semi-annual report on the maximum capacity of interconnections, the requested use and actual use due to limitations and technical restrictions, both intra-Community and international transactions with the Spanish electricity market, such as the transit of electricity between external systems which are carried out using the electricity system networks

Additional disposition first. Market operator and system operator.

1. It will be up to the company "Company of the Spanish Electricity Market, Company Anonima", to perform the functions entrusted in this Royal Decree to the market operator.

2. It will be for the company "Red Eléctrica de España, Sociedad Anonima", to perform the functions entrusted to the system operator in this Royal Decree.

Additional provision second. Circulars of the National Commission of the Electrical System.

Ministerial orders that may be issued in the development of this Royal Decree may enable the National Commission of the Electrical System for its development by means of circulars.

Additional provision third. Exceptions to the submission of offers.

In order to enable the system operator to confirm compliance with the conditions which may exempt generators from the obligation to submit offers to the market operator in accordance with the provisions of the Article The system operator must be informed by the undertakings which own the production units in respect of the maintenance plans of those units involving a total or partial incapacity for the electricity sector. generating power, starting and ending maintenance work and the occurrence of breakdowns in the abovementioned units, as well as the expected duration of the repair work and the time limits for the recovery of the production capacity.

The production companies will send to the system operator monthly, and with an annual horizon, the maintenance plans of their generation units, which will be indicative and whose purpose will be to enable the of the necessary safety studies in the coverage of the demand.

With sufficient time in advance on the start date of the work, depending on the size and importance of the generation unit for the operation of the system, the companies concerned must communicate to the operator the system shall be the date of commencement of such work, which shall be of a commitment and shall be confirmed by the system operator to the market operator to be taken into account in the market appeal process.

In addition, producers under special arrangements and holders of contracts which, by virtue of their characteristics, are excluded from the system of tenders, shall communicate to the system operator the conditions exempted from the obligation to the submission of sufficiently documented tenders, in order to enable it to be confirmed to the market operator.

When of the documentation received, the system operator can infer a problem for the normal operation of the production market or for the level of security of supply, will bring it to knowledge, simultaneously with the confirmation, from the Ministry of Industry and Energy, from the National Commission of the Electrical System and from the market operator.

The Ministry of Industry and Energy may establish the modalities and conditions of prior communications and other circumstances regarding the confirmation to be made by the system operator.

First transient disposition. Administrative records.

1. As long as the administrative records referred to in Articles 21 and 45 of Law 54/1997 of 27 November of the electricity sector are not constituted, the time limit referred to by the seventh transitional provision of the This Law, the owners of approved production and distribution facilities, as well as the external agents that may be authorized, may submit bids in the electricity production market.

2. Within one month of the entry into force of this Royal Decree, the subjects referred to in the preceding paragraph shall enter into the contract of accession and present the guarantees that are required.

Second transient disposition. Committee of market players.

Within three months of the entry into force of this Royal Decree, the establishment of the Committee of Market Agents, referred to in Article 29, shall be carried out.

Transitional provision third. Takeover bids.

Until three months after the entry into force of this Royal Decree, the energy purchase offers referred to in Article 9 may not include the price of the energy demanded, except for the offers of energy acquisition by the pumping stations.

Transitional disposition fourth. Intraday market.

1. Articles relating to the intraday market shall not enter into force until three months after the entry into force of this Royal Decree. During that period, the adjustments of the programming which are produced in the supply or in the demand will be determined by the system operator with technical and economic criteria that allow to incur the lowest possible cost, by means of transparent, objective and non-discriminatory procedures.

2. After the deadline referred to and for the following three months, the intra-day market management shall be the responsibility of the system operator.

Transient disposition fifth. "Red Electrica de España, Sociedad Anonima".

"Red Eléctrica de España, Sociedad Anonima", will make public the operating procedures currently applied in the framework of the management of the unified operation, which will be applicable in what is not contrary to the established in this Royal Decree and its implementing rules for a maximum period of six months, as long as the procedures referred to in Article 33 of this Royal Decree are drawn up.

Transitional disposition sixth. International exchanges.

The contracts signed by "Red Electrica de España, Sociedad Anonima", referred to in the third paragraph of the transitional provision novena of Law 54/1997, of 27 November, of the electricity sector, will maintain their validity and (a) operating on the margins of the production market, even if they are to be taken into account in the appeal of tenders, for their marginal variable cost at any time, without prejudice to the applicable contractual conditions. The differences between payments and charges on the market and payments and charges resulting from such contracts shall be passed on to all final consumers on terms to be determined by Ministerial Order.

Transitional disposition seventh. International connections.

1. For a maximum period of one year from the entry into force of this Royal Decree, the system operator is enabled to establish procedures in collaboration with the operators of neighbouring electrical systems:

a) The assessment of the technical capacity of the interconnection lines and the available capacity for commercial use after the security criteria established on both systems have been applied.

b) Managing network constraints on international interconnections.

c) The participation of external agents in the market for complementary services.

d) The measurement of deviations and management of cross-system support exchanges and their subsequent economic settlement with the market operator and external agents.

e) The management of energy exchanges between systems at voltages less than 220 Kv.

2. These procedures will be approved by the National Electrical System Commission.

Transient disposition octave. Conflict resolution.

1. The National Commission of the Electrical System shall, at the request of any of the parties concerned, resolve any disputes arising in connection with the economic management and technical management of the system, as well as transport and in particular, for contracts relating to third party access to the transmission and distribution networks.

2. As long as Article 8.1.14.a of Law 54/1997 of the electricity sector is not properly developed, the handling of complaints will be in accordance with the procedure laid down in Law No 30/1992 of 26 November 1992 on the legal framework of the Public administrations and the Common Administrative Procedure.

3. The resolutions of the National Commission of the Electrical System, will decide all the questions raised, will end the administrative route and will be recourse to the judicial-administrative jurisdiction.

4. The National Commission of the Electrical System shall ensure effective compliance with the decisions it provides pursuant to the provisions of this transitional provision.

transient disposition ninth. Electrical power distributors.

The electricity distribution companies which, at the entry into force of Law 54/1997 of 27 November, do not have the legal form of commercial companies, will have three months to adapt their Article 9 (g) of the Law of the Court of Justice of the European Union Once the adaptation has been carried out, they must communicate it to the Directorate-General for Energy within 15 days.

Final disposition first. Regulatory development.

The Minister of Industry and Energy is empowered to dictate how many provisions are necessary for the development and implementation of this Royal Decree.

Final disposition second. Basic character.

This Royal Decree is of a basic nature, in accordance with the provisions of Article 149.1.13.a and 25.a of the Constitution.

Final disposition third. Entry into force.

This Royal Decree will enter into force on January 1, 1998.

Given in Madrid at December 26, 1997.

JOHN CARLOS R.

The Minister of Industry and Energy,

JOSEP PIQUE I CAMPS