business plan for 2004 - EDP

2003 - Annual Report - EDP
• Co-operation between the national institutions of both
countries and process harmonisation.
With the deepening of the liberalisation process and
taking into account the creation of MIBEL, new
legislation was published to bring the structure of the
SEN and its work in line with a competitive market
regime, detailed as follows:
a) Order 12596/2003, of July 1:
Approves the draft bylaws and the organisation and
working model of the Iberian Energy Market operator –
Portuguese Pole.
The main object of this order is to undertake the
organisation and management of the two markets –
forward physical products and financial derivatives –
that will contribute to the concentration of the business
on fewer products, without prejudice to the respective
agents’ freedom to contract.
The operations involving the negotiation, transaction
and settlement of energy-based products and services
will take place on these markets.
b) Order 14 315/2003, of July 23:
Establishes the general principles of the methodology
and of the main valuation parameters to be used in the
termination of the CAEs, following which it will be
possible to calculate the contractual balance
maintenance costs (CMEC).
c) Decree-Law 184/2003, of August 20:
Establishes the exercise of new activities on the
electricity market, namely wholesale and retail trading
and importing and exporting electricity and, to develop
them, it creates the positions of seller and external
agent.
d) Decree-Law 185/2003, of August 20:
To develop the MIBEL, this decree-law establishes a set
of general rules, of transitory nature, required to create
a free, competitive electricity market and calls for the
adoption by the end of 2003 of a new Basic Law that
will undertake a profound revision of the electricity
sector legislation.
For this purpose, the decree-law establishes the general
rules applicable to the supply of electricity within the
SEN, particularly the attributions and duties of the
market agents and the obligations of public service and
of universal service.
It establishes the guarantee of adoption of indemnity
measures for producers for the termination of the CAEs
entered into by REN and the tied electricity production
entities.
It also defines the organised market and the
responsibilities of the market operator, and establishes
the principal of transmission or allocation to producers
of the land allocated to the respective electricity
generating centres.
e) Decree-Law 198/2003, of September 2:
Recognises the right to remuneration for the land
constituting the sites on which the SEP electricity
generating centres are set up, and establishes the rules
allowing REN to sell or to lease them to the present
SEN producers.
Publishes as an appendix plans of the areas allocated to
the electricity generating centre sites.
>> 1.1.2 Generating Business
The EDP Group is now involved in every segment of the
market covered by the present SEN legislation. Its
companies are organised in the following manner:
SEP
Generation
Non-
Binding
Generation
CPPE CPPE
EDP Energia
EDP Group
Special
Regime
Producers
CPPE
Soporgen
Energin Azóia
EDP Energia
ENERNOVA
EDP Bioeléctrica
Services
EDP Produção EM
Tergen
O&M Serviços
Enerfin
Ecogen
With a view to face more competitively the new
framework created by MIBEL and to allow greater
clarification and formalisation of the new areas and
activities that will appear during 2004, several measures
were implemented in 2003 with regards to the
organisation of EDP Produção:
• In June, the companies in the generation area were
reorganised and grouped by business units (Energy
Generation, Engineering & Cogeneration, and O&M
Services) with a view to their simplification and to
recompose their respective corporate offices;
• In July, the Trading area of the EDP Group was
transferred to EDP Produção, to which a part of the
CPPE fuel area was also transferred. During the
month, ENERNOVA and EDP Bioeléctrica were
transferred to the direct sphere of the EDP holding
company. These companies are engaged in specific
sectors of generation in the area of renewable
energies;
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