Decree-law 30/2006 of 15 February and decree-law 140/2006 of 26 July defined the opening of the natural gas sector, its commercialisation and the organisation of the markets, among other logistical principles. The main changes were:
- Anticipation of the market's liberalisation;
- Creation of last-resort marketing companies for the regulated market;
- Migration on 1 January 2007 of the contracts of clients who use over 2 million m³ a year to Transgás (subsidiary of the Galp Energia group) and on 1 January 2008 migration of the remainder contracts to last-resort retailer companies.
The publication of the decree-laws referred to and the supporting regulations to the natural gas sector's restructuring (regulation on commercial relations, tariffs regulation, regulation of network access, infrastructures and interconnections and quality service regulation) changed the sector's organisation and anticipated the liberalisation process.
In accordance with their annual consumption levels, clients become able to choose their natural gas supplier (free marketing company) between 1 Januart 2007 and 1 January 2010:
Last-resort supply companies are the entities that hold last-resort supply licences and are bound to supply natural gas to clients connected to the network, who by choice or for not having electibility conditions to maintain a contract relation with another marketing company are subjected to the tariff regime and the prices published by ERSE, Portugal's energy regulator.
Last-resort supply companies are divided into wholesalers and retailers. The wholesaler last resort supplier is responsible for supplying natural gas to last resort retailers as well as clients who use over 2 million m³. This licence was awarded to Transgás (subsidiary of the Galp Energia group). To each concessionaire or licensee of regional distribution (Lisboagás, Lusitaniagás, Setgás, Beiragás, Duriensegás, Dianagás, Medigás and Paxgás) is awarded a last-resort marketing licence in order to supply clients who use under 2 million m³ that are located in the concession areas. For concessionaires with over 100,000 clients (Lisboagás, Lusitaniagás and Setgás), the licence was awarded to companies wholly owned by them.
From the moment a client is electible, without affecting previous agreements, he may freely choose his natural gas supplier. However, if the client does not choose a free marketing company, the last-resort marketing company is bound to supply natural gas in the conditions set by regulations.
Natural gas transportation is guaranteed by network operators, which are of two types according to the gas pressure:
- Transportation network operator guarantees high-pressure transportation of natural gas and is performed by REN-Gasodutos, a company of the REN group;
- Distribution network operators guarantee medium- and low-pressure distributionm and is performed by concession or licence holders of regional distribution.
In addition to the transportation activity, the REN group is responsible for the storage, regasification and global management of the system through the roles of underground storage operator, operator of the LNG reception, storage and regasification terminal and global manager of the system, respectively.
Since 1 January 2008 the electible client may be in the regulated market and be supplied by a last-resort supply company, or be in the liberalised market and be supplied by a free marketing company.
Tariffs applied by the last-resort marketing companies are set by ERSE and are calculated by summing up the energy, the global use of the system, the use of the transportation network and the use of the distribution and marketing network tariffs:
- Energy: tariff that reflects the cost of natural gas and every cost inherent to buying and selling, including the use of the terminal and storage, and is determined quarterly;
- Global use of the system: tariff that reflects the costs of the Global Technical Management of the System, performed by the transportation network operator and set every year;
- Use of the transportation network: tariff that reflects the costs of the natural gas transportation activity and is set every year;
- Use of the Distribution Network: tariff that reflects the costs of the natural gas distribution activity and is set every year;
- Marketing: applied by last-resort marketing companies, this tariff reflects the costs inherent to the natural gas marketing activity of each last-resort marketing company and is set out every year.