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What it is

New rules to open up Spain's natural gas market

BOE step 7 of 7 · Passed

It is a government bill. Introduced by the Government. It was introduced on 1 September 2006. Introduced by: Gobierno.

Official title: Government bill amending Law 34/1998, of October 7, on the hydrocarbons sector, to adapt it to the provisions of Directive 2003/55/EC of the European Parliament and of the Council, of June 26, 2003, on common rules for the internal market in natural gas.

Source: Congreso de los Diputados, file 121/000102· updated 11 Nov

Automatic summary, not yet reviewed

  1. The law adapts the Hydrocarbons Sector Act to the 2003 European directive on the internal natural gas market, to achieve more competition, lower prices and better service for consumers.
  2. It legally and functionally separates network activities (regasification, basic storage, transmission and distribution) from gas production and supply, and companies carrying out regulated activities must keep separate accounts.
  3. The tariff system disappears and a last-resort tariff is created, a maximum price available to certain consumers, served by suppliers designated as last-resort suppliers.
  4. A Supplier Switch Office (Oficina de Cambios de Suministrador) is created, a company that oversees switches of gas and electricity supplier with transparency, objectivity and independence.
  5. The National Energy Commission (Comisión Nacional de Energía) monitors aspects of the gas sector such as network access, account separation, transparency and supplier switching, and may issue circulars published in the Official State Gazette.
  6. The independence of the Technical System Manager is strengthened; ENAGAS takes on this role through a specific unit with accounting and functional separation.
  7. The penalty regime is updated: very serious offenses carry fines of up to €30,000,000, serious ones up to €6,000,000 and minor ones up to €600,000, and penalty proceedings must be resolved within one year.
  8. A transition period until January 1, 2008 is set to adapt the old model to the new one, and last-resort tariffs apply from that date.

Who it affects

  • Natural gas consumers: They can choose and switch suppliers with guarantees, and some can use the last-resort tariff.
  • Gas sector companies (transmission, distribution and supply companies): They must separate activities, keep separate accounts, meet supply security obligations and submit to oversight by the National Energy Commission.
  • ENAGAS: Takes on the role of Technical System Manager through a specific, independent unit.
  • Autonomous Communities (regional governments): They handle authorization, inspection and sanction powers in their territory and take part in planning.
  • Suppliers designated as last-resort suppliers: They must serve certain consumers at a maximum price set by the Government.

Words worth knowing

Tarifa de último recurso (last-resort tariff)
The maximum price that designated suppliers may charge consumers entitled to it.
Separación funcional (functional separation)
The requirement that network activities be managed independently from gas production and sales, even within the same corporate group.
Peaje (network toll)
The price paid for using gas transmission or distribution networks.
Comercializador (supplier/marketer)
A company that buys gas and sells it to consumers.
Consumidor Directo en Mercado (direct market consumer)
A consumer that buys gas directly through third-party facilities, without a supplier.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries

Where it stands

How far did it get?

It took 7 of 7 steps. It reached BOE, and today it is passed.

  1. Introduced1 September 2006Someone registers the text in the Congreso.
  2. Admitted5 September 2006The Bureau of the Congreso accepts it and, for a members’ bill, the plenary decides whether to consider it.
  3. Amendments8 September 2006Groups propose changes.
  4. Committee6 February 2007A committee goes through the text in detail.
  5. Plenaryno dateAll 350 deputies vote.
  6. Senate14 March 2007The Senate can pass it, amend it or veto it.
  7. BOE14 June 2007It is published in the Official State Gazette (BOE) and comes into force.
See the 11 official steps on a timeline
Sept 2006Oct 2006Nov 2006Dec 2006Jan 2007Feb 2007Mar 2007Apr 2007May 200711. 1 September 2006: Presentación22. 5 September 2006: Comisión de Industria, Turismo y Comercio Publicación desde 05/09/2006 hasta 08/09/200633. 5 September 2006: Calificación44. 8 September 2006: Comisión de Industria, Turismo y Comercio Enmiendas desde 08/09/2006 hasta 22/12/200655. 22 December 2006: Comisión de Industria, Turismo y Comercio Mesa - Calificación desde 22/12/2006 hasta 06/02/200766. 6 February 2007: Comisión de Industria, Turismo y Comercio Debate de totalidad desde 06/02/2007 hasta 08/02/200777. 8 February 2007: Comisión de Industria, Turismo y Comercio Informe desde 08/02/2007 hasta 28/02/200788. 28 February 2007: Comisión de Industria, Turismo y Comercio Aprobación con competencia legislativa plena desde 28/02/2007 hasta 14/03/200799. 14 March 2007: Senado desde 14/03/2007 hasta 30/05/20071010. 30 May 2007: Pleno Enmiendas o veto del Senado desde 30/05/2007 hasta 14/06/20071111. 14 June 2007: Concluido - (Aprobado con modificaciones) desde 14/06/2007 hasta 04/09/2007

Was there a plenary vote?

We have no plenary vote linked to this law in the Congreso’s data.

What happens next

What happens now?

It is law, or will be once published in the BOE. It comes into force on the date its own text sets.

The same initiative in the other chamber:

Published in the BOE: Law 12/2007, of July 2, amending Law 34/1998, of October 7, on the Hydrocarbons Sector, to adapt it to the provisions of Directive 2003/55/EC of the European Parliament and of the Council of June 26, 2003, on common rules for the internal market in natural gas.

Sources

Where does all this come from?

  • The data comes from the open files of the Congreso, the Senate and the BOE, unaltered.
  • Each deputy’s province is the one of their seat on the day of the vote.
  • We only say “passed” or “rejected” when the majority needed is certain; otherwise we say which side had more votes.