REN develops its activity in the Electricity and Gas sectors and, as a complement to this, in the Telecommunications sector.
REN’s activities are carried out under a public service concession, within the framework of the normative and regulatory framework of the energy sector, namely Decree-Law 15/2022 of 14 January, which transposes Directive (EU) 2019/944 and Directive (EU) 2018/2001, and Decree-Law 62/2020 of 28 August, which transposes Directive 2019/692. These Decree-Laws establish, respectively, the organisation and operation of the Portuguese National Electricity System (NES) and of the Portuguese National Gas System (NGS), as well as their applicable legal regimes.
In electricity, REN is responsible for very-high-voltage transmission and for the Global Technical Management of the Portuguese National Electricity System on an exclusive basis under a 50-year public service concession, which REN – Rede Elétrica Nacional, S.A. has held since 2007.
In November 2010, the Portuguese Government awarded ENONDAS – Energia das Ondas, S.A. a concession for wave energy generation in a pilot area north of São Pedro de Moel. The concession has a term of 45 years and includes the authorisation for the laying of infrastructures to connect to the public electricity grid.
In the Gas sector, REN is exclusively responsible for high-pressure transmission and for the Global Technical Management of the Portuguese National Gas System, and of other high-pressure activities of the NGS.
These include the reception, storage, and regasification of liquefied natural gas and the underground storage of gas, under public service concessions, that REN Gasodutos, S.A., REN Atlântico – Terminal de GNL, S.A., and REN Armazenagem, S.A. (respectively), REN companies, have held since 2006 (and for 40 years).
REN also operates in medium- and low-pressure Gas Distribution through the public service concession, for 40 years, which REN Portgás Distribuição, S.A. has held since 2008.
In the telecommunications field, REN has been operating since 2002, through RENTELECOM – Comunicações, S.A., set up with the purpose of exploiting the surplus capacity of the telecommunications networks associated with the transmission of electricity and gas.
REN’s core activities, given the technical and legal specificities of its operation, are subject to economic regulation by the Portuguese Energy Services Regulatory Authority (ERSE). The assignment of economic regulation to ERSE does not prejudice the competences of the Portuguese Directorate-General for Energy and Geology (DGEG), the Portuguese Competition Authority (AdC), the Portuguese Securities and Exchange Commission (CMVM), the Portuguese National Entity for the Energy Sector (ENSE), and other administrative entities under the terms of the Law.
DGEG is the Portuguese Public Administration body whose mission is to contribute to the design, promotion, and evaluation of policies regarding energy and geological resources, from a perspective of sustainable development and guarantee of security of supply. Without prejudice to the powers assigned to other public entities, DGEG is responsible for exercising its powers to inspect concessions, namely concerning compliance with the applicable legal and regulatory provisions intrinsic to concession contracts.
ERSE has the power to draft and approve the regulations required for the performance of its attributions and which are intended for the application of the legislation that disciplines the organisation and operation of the sectors which are within the scope of its regulation.
Accordingly, the regulated activities are carried out taking into account the determinations, parameters, and technical and commercial indicators defined by ERSE, framed in the aforementioned regulations, of which we highlight:
The transmission of Electricity in very-high voltage and the Global Management of the System, both carried out by REN – Rede Elétrica Nacional, S.A., are subject to economic regulation by ERSE.
Regulation of the electricity sector is defined in four-year periods, with a new period beginning in January 2022 and ending at the end of 2025.
ERSE sets the rates each year, based on financial information from previous years and forecast data about demand, costs, revenues, and investments.
High-pressure gas transmission and the overall technical management of the system, both carried out by REN Gasodutos, S.A., the reception, storage, and re-gasification of LNG, carried out by REN Atlântico Terminal de GNL, S.A., the underground storage of gas, carried out by REN Armazenagem, S.A., and the distribution of gas, carried out by REN Portgás Distribuição, S.A., are subject to economic regulation by ERSE.
Regulation of the gas sector is defined in four-year periods, with a new period beginning in January 2020 and ending at the end of 2023.
ERSE sets the rates each year, based on financial information from previous years and forecast data about demand, costs, revenues, and investments, which consider the return on assets, the recovery of the value of amortisations, and operating costs established for each activity.