Ministerial Order no. 62/2018 of March 2 was published and approved the regulation for the attribution of production licenses or acceptance of prior notice for the production of electricity under special regime and in the general remuneration regime.

I. Framework

The Ministerial Order follows the provisions of Law no. 114/2017 of December 29, which approved the State Budget for 2018 (that amended the legal regime applicable to the activities of production, transportation, distribution and which foresees), and foresees the attribution by draw of production licenses and prior communications (which the requests were duly submitted and in a position to be licensed) when such requests, in aggregate, exceeds the capacity to receive electricity from the network area. Its attribution shall be granted, within the limits of the capacity available in the respective network area.

II. Draw

The draw - which is public - of licenses and acceptance of prior communication will be organized by the Directorate General of Energy and Geology (DGEG) through a Notice published within its website and in two newspapers of national expansion, with a minimum notice of 10 days, which must indicate the date, time and place of its realization. Candidates' representatives may participate in the draw as long as they demonstrate in a documentary manner the powers to act.

III. Jury

The draw will be chaired by a Jury, composed of 3 members, which is responsible for practicing all the acts - which in any case can be challenged, in general terms - and carry out all the steps related to the draw, namely: (i) to receive from the DGEG the lists of applications to be drawn; (ii) provide the necessary clarifications to the proper understanding and interpretation of the respective rules and the list of applications to be sorted; and (iii) conduct the public act of the draw.

IV. Clarifications and corrections to the order list

Clarification or rectification shall be obtained during the first 5 working days following publication of the list on the DGEG website. In this sequence, the Jury, after hearing DGEG, shall publish the answers to the clarifications and corrections requested within the 3 working days following the expiry of that period, and shall correct the list, if applicable.

V. Allotment and ordering of licenses and acceptance of prior notice

The licenses applications are allotted by zone of network or set of zone of networks, which are divided into sub-lots organized by period of presentation, as provided in article 33.º-J (2) of Decree-Law no. 172/2006 of 23 August with the subsequent amendments (it should be noted that this provision stipulates that applications shall be submitted in the period from 1 to 15 of January, May and September of each year).

The licenses and acceptance of prior notice shall be drawn by sublot, ordered for lottery purposes, by antiquity and ranked by order drawn in each sublot.

The attribution of a production license or acceptance of prior communication shall be immediate and automatic in accordance with the aforementioned hierarchy, up to the limit of the capacity available in the network zone or set of network areas.

The licenses and acceptance of communication that exceed the limit of the capacity available in the network area or set of network areas are hierarchical (for a period of validity of 2 years) for a future reinforcement of network in its zone or set of zones and up to the limit of its reinforcement, without prejudice to the provisions of paragraph 5 of article 33.º-F of Decree-Law no. 172/2006, of August 23 with the subsequent amendments.

VI. First draw

Within a maximum period of 10 days after the entry into force (i.e. until March 12, 2018), DGEG must publish the aforementioned Notice for applications for a production license or prior notice acceptance for the production of electricity under special regime and in the general remuneration system that are pending and duly instructed until December 31, 2017.