Electricity Distribution Concessions in LV

The Council of Ministers Resolution 27/2024, of February 23, which defined the principles and schedule for the allocation of municipal concessions for low voltage (LV) electricity distribution in mainland Portugal, stipulating that the LV electricity distribution concession tender should be launched by June 30, 2025  (See Post Low-voltage electricity distribution concessions: Tender timeline), was amended by the Council of Ministers Resolution 122/2024, published yesterday.

 What has changed?

• The main difference between the two resolutions is that Resolution No. 27/2024 established a specific timeline and formed a working group to launch the public procurement procedures. In contrast, the new Resolution creates a Coordination Commission for Low Voltage (CCLV), which must present a new scheduling proposal and guidelines for the municipal LV electricity distribution concessions by December 15, 2024, suspending the process until this new proposal from the CCLV is presented.
• The CCLV, chaired by Nuno Manuel Franco Ribeiro da Silva, comprises representatives from the National Association of Portuguese Municipalities (ANMP), the Energy Services Regulatory Authority (ERSE), the Directorate-General for Energy and Geology (DGEG), the National Cybersecurity Center (CNCS), and the Minister responsible for the energy sector. The chairman of the CCLV may also invite other individuals or entities of recognized merit in the involved areas to participate in the Commission's work.
• The new proposal from the CCLV should consider, among other things, alignment with the National Energy and Climate Plan 2030 (PNEC 2030), compliance with the principle of tariff uniformity, network modernization, as well as the impact on the costs and prices of electricity to be borne by end customers.

What is the practical impact?

• The practical impact of the changes introduced by Resolution No. 122/2024 results in the postponement of the launch of the LV electricity distribution concession tender, initially scheduled to occur by June 30, 2025, to a date yet to be defined by the CCLV.
• The amendment also implies reviewing the conditions and criteria for LV concessions, which may differ from the tender documents approved by Ordinance 397/2023 of November 28 (See post Standard documents for low-voltage electricity distribution tenders).

We will continue to follow the tender procedures and the work of the recently created CCLV.