Energy in Spain > Relevant legislation
Relevant legislation

In 2009 the Spanish parliament passed a raft of measures in the field of energy, including our selection of the most significant set out below from among those not specifically dealing with gas, which will be covered by the chapter dedicated to gas in Spain.

They are set out in chronological order.

  • Order ITC/3877/2008 approving the CORES (Oil-based Products Strategic Reserve Corporation quotas for the year 2009 (published in the BOE [Official State Gazette] of 02/01/2009)
  • Royal Decree 40/2009, establishing the values to be applied for the financing of the costs corresponding to the management of radioactive waste  and spent fuel, and the dismantling and sealing of installations (BOE 24/01/2009).
  • Royal Decree 542/2009, restructuring ministerial departments (BOE 07/04/2009). This created the Ministry of State for Energy, replacing (and extending the remit of) the Secretariat-General for Energy.
  • Circular 2/2009 of the CNE (National Energy Commission) governing the implementation and administration of the mechanism to promote the use of biofuels and other renewable fuels for transport purposes. (BOE 24/03/2009).

The Hydrocarbons Sector Act (Law 34/1998) lays down in its 16th Additional Provision annual targets for the sale or consumption of biofuels. Order ITC/2877/2008, establishing a mechanism to promote the use of biofuels and other fuels for transport purposes, lays down an obligation for accreditation of an annual minimum quantity of sales or consumption thereof. This Circular lays down the regulations for the organisation and operation of the biofuel and other renewable fuels certification mechanism. In specific terms, in the case of biofuels it sets targets of 3.4% for 2009 and 5.83% for the year 2010.

  • Ruling on the obligations to maintain minimum security stocks of oil-based products on the part of the CORES (Oil-based Products Strategic Reserve Corporation) and the parties under this obligation (BOE 03/04/2009).

This repeals the Ruling of 26/10/2007, with the same purpose, establishing the levels of stocks from 31 October 2007 onwards. The CORES will publish on its website information regarding the stocks held by the parties obliged to maintain minimum stock levels.

  • Ruling of the CNE establishing and publishing the lists of the main and dominant operators in strategic sectors (BOE 20/04/2009).
  • Royal Legislative Decree 6/2009, adopting certain measures for the energy sector and approving the social bond (BOE 07/05/2009).

This involves transversal legislation within the energy sector, in the sense that it impacts on various aspects of several constituent sub-sectors. For electricity, for example, it sets limits in order to restrict the increase in the deficit, marking out a path for the progressive sufficiency of access tolls, while furthermore dealing with a mechanism for funding the electrical market's tariff deficit.

It also includes for the same market mechanisms to protect vulnerable social groups, imposing a public service obligation. It meanwhile tackles the need to release the electrical tariff as soon as possible from the burden represented by funding for General Radioactive Waste Plan operations. Mechanisms are furthermore established for the remuneration system for special regime facilities.

The Royal Legislative Decree also addresses the need to establish an effective procedure for the allocation of those gas pipelines deemed as having priority for the security of gas supply within energy planning.

Article 5 indicates that in the case of primary transmission gas pipelines belonging to the mesh network, contracts will be awarded directly to the company performing the role of Technical Gas System Operator, currently Enagás.
  • Ruling approving the strategic sea study for the installation of marine wind farms (BOE 08/05/2009).
  • Ruling establishing the (monthly) invoicing procedure with estimates of electrical energy consumption and adjustments in accordance with actual readings (BOE 26/05/2009).
  • Order ITC/1659/2009 establishing the mechanism for the transfer of clients from the tariff market to the last resort supply of electrical energy and the procedure for calculation and the structuring of electrical energy last resort tariffs (BOE 11/07/2009).

This order applies to all parties in the electrical system involved in last resort supply, in particular the last resort marketers and consumers. Consumers with the right to last resort supply include all those with a low voltage connection and a contracted power rating of less than or equal to 10 kW.

IBERDROLA

In effect, from 1 July 2009 all electrical market tariff supply contracts signed by distributors and clients were terminated. Consumers will be entitled to sign a supply contract with a marketer, whether or not a last resort operator. Distributors (as happened in the natural gas market 1 July 2008) will no longer be supplying gas to end clients.

  • Ruling establishing the procedure for implementation of the social bond (BOE 29/06/2009).
  • Ruling establishing the electrical energy production cost and last resort tariffs to be applied in the second half of 2009 (BOE 30/06/2009).
  • Order ITC/1723/2009 revising the access tolls from 1 July 2009 and the tariffs and premiums for certain special regime facilities (BOE 29/06/2009).
  • Order ITC/1785/2009, setting the date for the final shutdown of operations of the Santa María de Garoña Nuclear Power Plant as 06 July 2013, and authorising operation up to this date (BOE 04/07/2009).
  • Ruling approving the timeframe and number of contracts for contract auctions covering electrical interconnection between Spain and Portugal (BOE 18/06/2009).
  • Circular 5/2009 of the CNE on the sourcing of accounting and economic/financial information on companies undertaking electrical, natural gas and manufactured gas by pipeline operations (BOE 16/09/2009).
  • Order PRE/2827/2009 modifying the sums of the sectoral allocations laid down in the National Greenhouse Gas Emissions Rights Allocation Plan, 2008-2012, approved by Royal Decree 1370/2006 (BOE 23/10/2009).
  • Royal Decree 1826/2009, modifying the Thermal Buildings Installations Regulations, approved by Royal Decree 1027/2007 (BOE 11/12/2009).
  • Instrument for Ratification of the Treaty modifying the European Union Treaty and the European Community Treaty, made at Lisbon on 13 December 2007 (BOE 27/11/2009).

For the first time the fundamental text of the European Union includes specific energy regulations. In concrete terms, the Lisbon Treaty ratified by Spain by means of this instrument has its Title XX dedicated to the sector.

  • Act 25/2009, modifying various acts for adaptation to the law governing free access to service activities and the exercise thereof (BOE 23/12/2009).

As indicated in the Preamble to the Act, Act 17/2009, on free access to service activities and the exercise thereof, partially incorporated within Spanish law Directive 2006/123/EC, regarding internal market services. Within this context, Act 24/2009 pursues a twofold aim: it adapts Spanish regulations to the terms of Act of 17/2009, while also, with the aim of providing greater dynamism in the services sector and achieving a competitive edge over other EU countries, extending the principles of sound regulation to sectors not affected by Directive 2006/123/EC, with the aim of effectively eliminating unnecessary or disproportionate requirements or obstacles.

It should be pointed out that Title III, Energy Services, eliminates the authorisation systems for engaging in commercial activities within the context of the Electrical Sector Act (Act 54/1997) and the Hydrocarbons Sector Act (Act 34/1998). It also eliminates the requirement for registration in the Register for direct marketers and consumers in the electricity and natural gas markets. It finally eliminates the requirements prohibited by Act 17/2009, on the free access to service activities and the exercise thereof, in all energy sector legislation.

  • Ruling establishing the electrical energy production cost and last resort (electricity) tariffs to be applied in the first half of 2010.
Annual Report 2.009: Sedigas - The Spanish Gas Association