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What it is

Overhaul of the electricity law to open the market to competition

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 54/1997, of November 27, on the electricity sector, to adapt it to the provisions of Directive 2003/54/EC of the European Parliament and of the Council, of June 26, 2003, on common rules for the internal market in electricity.

Follow this law

Source: Congreso de los Diputados, file 121/000103· updated 11 Nov

Automatic summary, not yet reviewed

  1. Regulated-rate supply by distributors ends on January 1, 2009. From then on, consumers freely choose their supplier among competing retailers.
  2. It creates last-resort rates: maximum prices set by the government for certain consumers, as a universal service. Designated retailers must provide them with separate accounts from their free-market activity.
  3. Small distributors with fewer than 100,000 customers are exempt from legal and functional separation of activities, so they are not burdened disproportionately.
  4. It creates the Supplier Switch Office, an independent company that oversees and manages switches of electricity and gas suppliers. It will have access to supply point databases.
  5. The transmission grid is split into primary and secondary transport, and Red Eléctrica de España is designated as sole transmission company on an exclusive basis. A specific internal unit is created within the company for the system operator.
  6. The National Energy Commission (Comisión Nacional de Energía) oversees non-discrimination and competition in the market, and complaints against grid managers must be resolved within two months, extendable by two more.
  7. The penalty regime is updated: very serious offenses carry fines of up to €30 million, serious ones up to €6 million, and minor ones up to €600,000.
  8. Owners of transmission facilities must sell them to Red Eléctrica de España within a maximum of three years, at a price agreed by the parties or set by an arbitrator.

Who it affects

  • Electricity consumers: They can freely choose their supplier from January 1, 2009; some have the right to last-resort rates.
  • Distributors: They stop supplying at regulated rates, take on new information duties, and must keep separate accounts per activity.
  • Retailers (comercializadoras): They take over all supply, and some will be required to provide last-resort supply.
  • Small distributors: Those with fewer than 100,000 customers are exempt from legal and functional separation of activities.
  • Owners of transmission facilities: They must transfer them to Red Eléctrica de España within a maximum of three years.

Words worth knowing

Tarifa de último recurso (last-resort rate)
Maximum price set by the government so that certain consumers can contract electricity without going to the free market.
Peaje de acceso (grid access toll)
Money paid for using the electricity transmission and distribution networks.
Comercializadora (retailer)
Company that buys energy and sells it to consumers.
Operador del sistema (system operator)
Company that guarantees continuity and security of electricity supply and coordinates the transmission grid.
Comisión Nacional de Energía (National Energy Commission)
Public body that oversees and regulates the electricity market.

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 17/2007, of July 4, amending Law 54/1997, of November 27, on the Electricity Sector, to adapt it to the provisions of Directive 2003/54/EC of the European Parliament and of the Council of June 26, 2003, on common rules for the internal market in electricity.

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.

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