1. Definition

Electricity distributors are all companies from Spain or, whenever this is the case, from other member States of the European Union with a permanent establishment in Spain, that distribute electric power, and construct, maintain and operate distribution installations designed to supply power to consumption points and sell electricity to end consumers purchasing electricity under the tariff system or other distributors also purchasing electricity under the tariff regime. 

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	2. Administrative authorisation

The construction, modification, exploitation and transmission and closure of electricity distribution installations are subject to administrative authorisation regardless of their location or use. 

Administrative authorisation ordering the closure of an installation may require the owner to dismantle the installation. 

The competent Administration will refuse authorisation in the event of failure to comply with legally established requirements or if the company does not offer guarantees of its legal, technical and economic capacity necessary to engage in the proposed activity, or in the event of any incident that undermines the operation of the system.

Under no circumstances shall the authorisation be deemed to have been awarded on a monopoly basis nor shall exclusive rights be awarded. 

Authorisations shall be issued by the competent Administration, without prejudice to the necessary concessions and authorisations, pursuant to other applicable regulations and particularly those relating to land planning and the environment. 

In the event of failure to resolve the authorisation requests referred to in the present article, the aforementioned requests shall be rejected. Nevertheless, ordinary appeals may be presented before the corresponding administrative authority. 

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	3. Obligations of Distributing Companies.

Distributing companies shall have the following obligations: 
 

1.  Supply electricity to users under the tariff system. 
2.  Perform their activities in the authorised manner and in accordance with applicable legislation, rendering the distribution service on a regular and continual basis, and in accordance with established quality levels, maintaining electricity distribution networks in adequate conditions of repair and technical conformity. 
3.  Enlarge distribution installations whenever necessary in order to meet new electricity supply demands, without prejudice to the results of the application of the regime established on a regulatory basis for electricity supplies.


When there are various distributors with installations that may be enlarged and none of the aforementioned distributors performs the enlargement work, the competent Administration shall determine which of these distributors must distributors must enlarge their installations, in accordance with the conditions stipulated by the aforementioned competent authority. Distributing companies must notify the Ministry of Industry and Energy of any installation authorisations that they are awarded by other Administrations, as well as any modifications relating to their activity in order to recognise their costs when calculating the tariff and establishing the applicable remuneration system. 

4.  Notify the Ministry of Industry and Energy and the competent Administration of any information that they obtain on prices, consumption, invoicing and sale conditions applicable to consumers, distribution of consumers and corresponding volumes by consumption categories, as well as any information relating to activity performed within the electricity sector. 
5.  Meet, in conditions of equality, new electricity supply demands in areas in which they operate and enter into supply contracts in accordance with the provisions established by the Administration. 
6.  Measure the supplies established in applicable regulations, ensuring, where appropriate, the accuracy of the aforementioned supplies and accessibility to corresponding equipment, allowing the competent Administrations to control the same accordingly. 
7. Apply corresponding tariffs to consumers in accordance with the provisions established by the General State Administration. 
8. Inform consumers of the most appropriate electricity tariffs for their needs. 
9.  Implement demand management programmes approved by the Administration. 
10. Promote the rational use of power. 
11. Guarantee the quality of the service that is established in regulations, pursuant to the criteria differentiating between areas and types of consumption described in the following chapter. 
12. Purchase the power required to develop their activities, paying for purchases by means of the corresponding settlement procedure established for this purpose. 

 

	4. Rights of Distributing Companies.

Distribution Companies shall have the following rights: 
 

1.  Recognition by the Administration of remuneration for exercising their activity within the National Electricity System. 
2. Purchase electricity required to meet customer supply demands. 
3. Receive remuneration in return for distributing electricity. 
4. Demand that installations and equipment available to users meet the specified technical and construction conditions, as well as the proper use of the aforementioned installations and equipment in compliance with established terms and conditions to ensure that the condition of quality of supply is maintained without undermining or degrading its quality for other users. 
5. Invoice and receive payment for power supplied. 

 

The distribution network manager in each zone will establish the operating and maintenance criteria of the networks, guaranteeing the conditions of security, reliability and efficiency of these networks in accordance with applicable environmental regulations. 

The network manager must guarantee the confidentiality of the information of which it has knowledge in the performance of its duties, whenever the disclosure of such information may give rise to problems of a commercial nature, without prejudice to the obligation to provide information to public Administrations. 

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	5. Access to Distribution Networks.

Distribution networks may be used by qualified consumers and participants and by non-domestic participants who are authorised to take part in intra-Community and international exchanges. The price for the use of distribution networks shall be established by the toll approved by the Government. 

The distribution network manager may only reject applications for access to the network if the consumer does not have the necessary capacity. 

Rejections must be justified. Lack of necessary capacity can only be justified on the grounds of criteria of safety, regularity or quality of supply, pursuant to the provisions established for this purpose in existing regulations. 

The National Electricity System Commission will resolve any disputes arising in connection with the application of network access contracts. 

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