Energy Flash: New cycle of the municipal low-voltage electricity distribution concessions – “synchronized launch” of public tender procedures
Law no. 31/2007, of May 31, was published in the Portuguese Official Journal. Taking into account the upcoming term of the municipal low-voltage electricity distribution concession agreements in Portugal mainland, this law foresees a “synchronized launch” of the public tender procedures for the award of the new concession agreements.The main purpose of this regime is to avoid a territorial fragmentation of the activities related to the low-voltage electricity distribution, resulting from each municipality or inter-municipal entity carrying out its own public tender procedures on an individual basis, which could potentially lead to efficiency losses and reduction of synergies due to the splintering of distributing companies.
In this light, the regime foresees that Portugal mainland is divided into large supra-municipal areas and that only one public tender procedure is carried out in each area, based upon the setting up of a group of awarding entities between the municipalities and/or inter-municipal entities of that area (however, after the award decision, each awarding entity shall enter into a separate concession agreement with the selected bidder).
Moreover, according to the regime, the awarding entities’ groups presiding over the territorial areas shall launch the public tender procedures at the same time, which is set to occur in 2019.
Read the full text in our Energy Flash below (in Portuguese).