Low voltage electricity distribution networks: upcoming award of municipal concessions

The vast majority of the low voltage electricity distribution networks in Portugal is operated by private entities under municipal concession contracts which, for the most part, have already or will shortly expire, which motivated the approval of Law no. 31/2017, of 31 May.

This FLASH highlights the most relevant features of the forthcoming process for the granting of the low voltage electricity distribution concessions, which face, in particular, the following challenges: (i) safeguarding the uniformity of tariffs and service to final clients; (ii) ensuring greater efficiency in the performance of the activity; (iii) putting forward responsiveness to developments in the sector; (iv) promoting the participation of the municipalities in the distribution network operators’ activity with greater impact in the local populations; (v) ensuring the distribution network operators’ role in the energy market; and (vi) taking into consideration the requirements of unbundling of the activity vis-à-vis the production and trading activities.