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Annual Report 2014
Message from the Chairman
CONSOLIDATED AND INDIVIDUAL ACCOUNTS

01 Message from 
the Chairman

"The improvement in the Company’s financial structure was recognized in June 2014, with the awarding of an ‘investment grade’ rating by Moody’s"

Message from the Chairman

In 2014, the Portuguese economy was marked by the end of the Economic and Financial Assistance Programme and the appearance of signs of an upturn. GDP grew by 0.9% and the effort to consolidate public finances continued. The deficit stood at 4% but public debt reached 128.7% of GDP. A fall was also seen in unemployment  figures for 2014 (from 15.4% to 13.9%). Despite these signs, power consumption continued to drop: -0.7% with regard to electricity and -5.4% for natural gas. This situation most likely contributed to a pro-cyclical stance by authorities in relation to investment in the sector.

On a broader level in the European Union, at the European Council on 23 and 24 October 2014 an important step was taken in the building of the European energy market and defence of European energy security.

Member States (ME) agreed to strengthen interconnection capacity between countries, establishing a minimum 10% before 2020, as a key stage in achieving the 15% planned for 2030. Also considered as an urgent matter was the development of the projects on the already approved list of 'Projects of Common Interest (PCIs)' and new priority projects will be added if those on the list prove to be insufficient to reach the 10%.

With regard to energy security, priority was given to the gas platform in the south of Europe, through the PCI projects in this sector. This platform is seen as essential to ensuring European Union supply and for diversifying gas routes and suppliers.

At the start of 2015, a joint document was signed in Brussels in which the electricity network management companies of Portugal, Spain and France, REN, REE and RTE respectively, agreed on a common strategy for interconnecting the Iberian Peninsula with the centre of Europe.

For REN, the year started with the unexpected resignation of the Chairman and CEO, Rui Cartaxo, less than one year from the end of his term in office.

I took on the responsibility of ensuring transition. Transition periods, even when actively undertaken as was my approach, are always either too short or too long. Too short for significant strategic and structural changes; too long for the efficient management of expectations. I sought never to delay any decision which had to be made or preclude any options with deeper considerations requiring a more long-term perspective. It was also possible to prepare an agreement with the main shareholders on a new governance model for the Company and recruit a new CEO, Rodrigo Costa. Co-opted as a Director in December, he took up duties at the start of February 2015.

My first task was to conclude the privatization process with the sale of the shares (11%) still held by the State through Parpública and the Caixa Geral de Depósitos. Performance had been penalized by its limited liquidity, largely as a result of the shares' low free-float. This difficulty was significantly attenuated with sales to international investors and the average daily volume of negotiated shares more than tripled. Another aspect, which was no less relevant, was the finalizing of the institutional framework. Full separation of functions now exists between the grantor (the Portuguese State) and the concession holder (REN), now wholly owned by private shareholders.

Also of note on an institutional level was the progress made in the REN certification process as a TSO, in accordance with European Union and Portuguese law, with the publication on 4 September 2014 of the decision by the Energy Services Regulatory Authority (ERSE). Certification continued to be subject to a series of conditions, some of which have already been resolved, while others will be deliberated at the Company's General Meeting.

Strict compliance with concession obligations continued to be an overriding concern in our approach. Once again we sought to maintain high standards of quality at the best price for services provided to producers, distributors and suppliers. Other priority aims included efficient management of systems on a national level and in our interaction with outside markets, more specifically the Iberian market.

In 2014, we registered our second best performance ever in quality of service for electricity, with an Equivalent Interruption Time (EIT) of 1.2 seconds.

Also of note was the inauguration, during the first semester, of the Tavira electrical connection to Andalusia in Spain. This is an important contribution to the integration of the Iberian electricity market benefiting customers in both countries.

The improvement in the Company’s financial structure was recognized in June 2014, with the awarding of an ‘investment grade’ rating by Moody’s.

REN already had an identical rating from Fitch, in effect since January 2013, but this new rating contributed to a more favourable climate among our creditors and opened the doors for future issues of debt securities at significantly lower costs.

A decision proving to be relevant with regard to infrastructure was the signing of the contract for the partial transfer of the natural gas storage concession held by Galp. At the moment, the only remaining step is government authorization, as favourable opinions have already been issued by the Competition Authority and ERSE. With this deal, REN’s role in the natural gas value chain will be fully defined, with the Company becoming the only player in this regulated area and national storage infrastructures will be provided for all agents under identical conditions.

In December, ERSE approved the tariff regulation for 2015-2017. The new regulatory framework largely reflects the previous framework but salient changes include the shrinking of some incentives and the drastic reduction in the rate of return
– as a result of the evolution in sovereign interest rates – demanding challenges to increase efficiency and reduce costs without affecting the quality of service provided by REN. As the reduction in financial costs is not processed in the same time frame, the impact on the return of regulated assets inevitably leads to a drop in revenue. This effect, partly predictable, together with the also expected more restrictive policy on new investment in Portugal, reinforces the need to find new sources of generating income by geographically diversifying REN’s business. This will be achieved by taking full advantage of our recognized technical capabilities and know-how. As such, we have strengthened our ability to track down and assess new business opportunities, both with regard to investment as well as provision of services.

At the start of 2015, we concluded the negotiations for a new Collective Labour Agreement (ACT) which was signed by all the unions representing REN workers. The previous ACT, which covered only a part of Company employees, ended in 2012 and as differing legislation and other divergent factors existed, a search was undertaken for a solution which would lead to equality and a strengthening of identity and the feeling of belonging to REN. The new ACT also contributes to a more suitable adjustment to Group needs in the management of human resources and work organization.The 2014 Budget Law approved an Extraordinary Contribution on the Energy Sector (CESE) which meant that three companies in the REN Group – REN-Rede Eléctrica Nacional, REN Gasodutos and REN Armazenagem - were subject to this contribution.

Given the well-founded questions about this law and aware of the significant impact which CESE would have on Group results, a in-depth evaluation process was started on the legality of this measure.

As this process has not as yet been concluded, REN decided to notify the Portuguese Securities Market Commission that it would not be paying this contribution.

In 2015, further to the notification sent by the tax authorities, REN paid the CESE and informed that, given the well-founded questions on legality, the Company would be submitting a legal challenge.

The cumulative negative effect of the new regulatory framework for electricity and the CESE (since renewed for this year through the 2015 Budget Law) will impact considerably on REN profits. This is a situation which substantially alters the assumptions on which REN investors based their decisions and is contrary to their legitimate expectations with regard to how the public sector would act.

This is a further challenge which management will have to face in 2015 and reinforces the reasons behind our relentless search for gains in operating and financial efficiency and the diversification of REN business into other countries.



2.1 PROFILE

BRIEF DESCRIPTION OF COMPANY BUSINESS

A REN's core business consists of the management of energy transmission systems and we are present in the electricity and natural gas markets

One of the few operators in Europe with this characteristic:

  • Electricity – the transmission of very high voltage (VHV) and the overall technical management of the national electricity system through REN – Rede Eléctrica, S.A., a company wholly owned by REN and the public service concession holder. The concession is for a period of 50 years and started in 2007; and
  • Natural gas – the high pressure (HP) transmission and the overall technical management of the national natural gas system, the reception, storage and regasification of liquefied natural gas and the underground storage of gas, REN Gasodutos, S.A., REN Atlântico – Terminal de GNL, S.A. and REN Armazenagem, S.A. (respectively), companies from the REN Group, have been public service concession holders since 2006, and the licence is for a period of 40 years.

Through REN Trading, S.A., REN manages the energy to be acquired from two electrical power plants, as part of energy acquisition contracts which were not subject to early termination.

Since 2002, REN has also been present in the telecommunications sector through RENTELECOM – Comunicações, S.A., established with the aim of using the surplus capacity of the safety telecommunications networks which are vital to electricity and natural gas transmission.

 

In October 2010, the Portuguese state awarded ENONDAS, Energia das Ondas, S.A., a company wholly owned by REN, a concession for wave energy production in a pilot area to the north of São Pedro de Moel. The concession has been granted for a period of 45 years and includes authorization to build the infrastructures required to connect to the public power grid.

Group business functions are conducted by REN Serviços S.A. (REN Serviços). More specifically, this includes support for the concession holders and back-office services. In addition to this support work, REN Serviços also operates as a commercial extension of REN, providing consultancy and/or engineering services to third parties within the energy sector.

3.1.1 ECONOMIC ENVIRONMENT

THE RECOVERY OF THE GLOBAL ECONOMY CONTINUED IN 2014

However, this fairly modest growth involves significant differences between regions.

 

WORLD ECONOMY1

The recovery of the global economy continued in 2014. The forecast for growth in economic activity is +3.3% (vs. +3.1% in 2013). However, this fairly modest growth involves significant differences between regions.

Focusing the analysis on advanced economies, of note are the improvements seen in the European Union (expected growth of +1.3%), following zero growth in 2013. Major factors contributing to this performance were the stabilisation of the Euro zone, whichis expected to grow +0.8% in 2014 (after contracting -0.5% in 2013), and the strong performance of other EU member states (such as the United Kingdom, with a +3.1% growth in 2014 (+1.7% in 2013)). The USA is expected to post growth similar to that of 2013 (+2.2%, the highest among advanced economies, benefiting from improvements in the labour market and favourable financing conditions). In Japan, the implementation of fiscal consolidation measures contributed to a reduction in GDP growth from +1.5% in 2013 to +1.1% in 2014.

Emerging economies have had differing performances. On the negative side, of note was the impact of geopolitical tension in Russia (growth of only +0.3% in 2014, after an increase of +1.3% in 2013) and the impact of the reduction in the price of raw materials in Latin America (expected growth of +1.4% in 2014, half of the increase of +2.7% recorded in 2013). On the positive side, Sub-Saharan Africa grew +5.2% in 2014 (+4.9% in 2013) and Asia (excluding Japan) +6.1% (the same as in 2013). It should be noted that growth in Asia remains constant despite the rebalancing underway in the Chinese economy (increase in the weighting of domestic consumption offset by reductions in investment). Growth in GDP is expected to fall from the +7.6% of 2013 to 7.3% in 2014.

 

GDP EURO ZONE
+ 0.8% IN 2014

EURO ZONE2

After a contraction in GDP of -0.5% in 2013, the Euro Zone is expected to grow by +0.8% in 2014. Despite this improvement, growth continues below that of the European Union as a whole, and other developed economies. This is due to the relatively high level of unemployment, persistent macro-economic imbalances in several countries and the slow rate of implementation of structural reforms. Despite these effects, private consumption (growth of +0.7% in 2014 vs. -0.6% in 2013) and investment (+0.6% in 2014 vs. -2.5% in 2013) inverted the negative trend; public spending is expected to pick up (+0.6% in 2014 vs. +0.2% in 2013) and net exports continue to help growth (positive contribution of +0.1% in 2014). Although unemployment continues to be high, it fell from 11.9% in 2013 to 11.6% in 2014.

 

INTEREST RATES3, 4

During 2014, the ECB cut the reference rate twice, from 0.25% to 0.05%, while the United States Federal Reserve kept the Fed Funds Target Rate between 0% and 0.25%. In line with the reduction in the reference rate, Euribor rates hit new lows. At 31 December 2014, Euribor rates for 3, 6 and 12 months stood at 0.078% (compared to 0.287% at the end of 2013), 0.171% (vs. 0.389%) and 0.325% (vs. 0.556%).

 

EXPORTS
+2.6%

THE PORTUGUESE ECONOMY5, 6, 7

2014 saw continued recovery in the Portuguese economy. This turnaround started at the end of 2013 and is expected to lead to growth in 2014 of +0.9%, thus inverting the fall seen in 2013 (-1.4%). This evolution is a result of a recovery in private consumption (+2.2% in 2014, vs. -1.7% in 2013) and investment (+2.2% in 2014 vs. -6.6% in 2013), as well as a reduction of the contraction in public spending (-0.5% in 2014, vs. -1.8% in 2013).

Internal demand will thus provide the main contribution to growth in GDP (+2.3%). However, the growth in internal demand will lead to an increase in imports of +6.3% over figures for 2013, clearly higher than the increase in exports of only +2.6%. As a result, net exports will provide a negative contribution to growth in GDP of -1.5%.

Finally, also of note is the continued (at a slower rate) effort to consolidate public accounts, and the expectation for the public deficit to fall from 4.9% in 2013 to 4.8% in 2014 (6.5% in 2012). Public debt is expected to fall from 129.0% of GDP in 2013 to 127.2%.

 

IMPORTS

+6.3%
    1 European Commission: European Economic Forecast, Autumn 2014

    2 European Commission: European Economic Forecast, Autumn 2014 – Euro Zone

    3 Reference Rates: ECB and FED (www.ecb.int; www.federalreserve.gov)

    4 European Money Markets Institute

    5 Bank of Portugal: Economic Bulletin Winter 2014

    6 Ministry of Finance: Budget Strategy Document 2014-2018

    7 European Commission: European Economic Forecast, Autumn 2014 – Portugal

4.1 Sustainability Approach

BIODIVERSITY IS THEREFORE ONE OF THE MOST IMPORTANT VALUES

to REN in the assessment of the impact of its infrastructures on the environment.


The sustainability information provided in this annual report refers to 2014 and encompasses the activities of the companies of the REN Group - Rede Eléctrica Nacional S.A., REN Gasodutos S.A., REN Armazenagem S.A., REN Atlântico S.A., REN Trading S.A., REN Serviços S.A., REN Telecom S.A. and ENONDAS S.A.

This report was prepared in compliance with the third version of the Global Reporting Initiative (GRI) guidelines, based on the protocols for general indicators and on the sectoral supplement for the electricity sector, having adopted and fully responded to the requirements corresponding to the A+ level of application of the GRI and the principles of the AA1000APS standard.

C

C+

B

B+

A

A+

SELF-DECLARED

     ✓

EXTERNAL VERIFICATION

     ✓

AA1000APS ACCOUNTABILITY PRINCIPLES STANDARD (2008)

The application of the principles of the AA1000APS standard, which are summarized below, was also reflected in the strategic drivers and in the contents of this report.

  • Inclusion (participation of stakeholders in the development and implementation of the sustainability strategy): methodologies and processes for involvement and participation of various stakeholders were defined. The results were integrated into the REN sustainability strategy review, a fact also mentioned in Chapter 3;
  • Relevance (definition of the relevant issues for REN and its stakeholders): in order to identify relevant topics, a benchmark analysis of leading national and international companies and the main industry trends in the sector was carried out. The results of stakeholder consultations held in 2011 and 2013 were also considered;
  • Response (REN’s response to relevant issues, through its decisions, actions, performance and communication): REN seeks to meet the expectations and concerns raised specifically by each stakeholder, either individually or generally. In general terms, this report and the REN website are the main forms of communication used to disseminate the company’s strategy, initiatives and performance achieved.

5.1 Consolidated Financial Statements

Consolidated statements of financial position as of 31 December 2014 and 2013

(TRANSLATION OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ORIGINALLY ISSUED IN PORTUGUESE - NOTE 38)

(Amounts expressed in thousands of Euros – tEuros)


31 December

ASSETS

Notes

'14

'13

Non-current assets

  

Property, plant and equipment 8

682

934
Goodwill 9

3,774

3,774
Intangible assets 8

3,838,228

3,877,420
Investments in associates and joint ventures 10

12,575

12,155
Available-for-sale financial assets 12 and 13

144,443

156,886
Derivative financial instruments 12 and 16

21,970

-
Other financial assets 12

93,482

102,274
Trade and other receivables 12 and 14

86,182

81,588
Deferred tax assets 11

65,982

67,800

4,267,320

4,302,830

Current assets

  

Inventories 15

1,779

1,880
Trade and other receivables 12 and 14

459,785

565,923
Available-for-sale financial assets 12 and 13

62,530

-
Current income tax recoverable 11 and 12

10,219

-
Other financial assets 12

8,864

22,728
Cash and cash equivalents 12 and 17

114,258

167,987

657,435

758,518

Total assets

7

4,924,755

5,061,349

EQUITY

  

Shareholders' equity:

  

Share capital 18

534,000

534,000
Own shares 18

(10,728)

(10,728)
Reserves 19

315,621

271,634
Retained earnings

183,896

163,356
Net profit for the year

112,777

121,303

Total equity

1,135,567

1,079,566

LIABILITIES

  

Non- current liabilities

  

Borrowings 12 and 20

2,207,514

2,430,159
Liability for retirement benefits and others 21

126,617

126,231
Derivative financial instruments 12 and 16

24,581

34,320
Provisions 22

4,947

4,690
Trade and other payables 23

328,228

370,298
Deferred tax liabilities 11

92,270

73,956

2,784,157

3,039,654

Current liabilities

  

Borrowings 12 and 20

396,952

250,325
Provisions 22

2,369

1,213
Trade and other payables 23

605,711

642,973
Income tax payable 11 and 12

-

44,935
Derivative financial instruments 12 and 16

-

2,683

1,005,031

942,129

Total liabilities

7

3,789,188

3,981,783

Total equity and liabilities

4,924,755

5,061,349

    The accompanying notes form an integral part of the consolidated statement of financial position as of 31 December 2014.

    The Accountant                                                           The Board of Directors




Consolidated statements of profit and loss for the years ended 31 December 2014 and 2013

(Translation of consolidated statements of profit and loss originally issued in Portuguese - Note 38)

(Amounts expressed in thousands of Euros – tEuros)

Year ended

Notes

'14

'13

Sales 7 and 24

575

112
Services rendered 7 and 24

570,275

575,886
Revenue from construction of concession assets 7 and 25

163,186

187,464
Gains from associates and joint ventures 10

421

(361)
Operating grants

10

-
Other operating income 26

21,576

25,744

Operating income

756,042

788,845

Cost of goods sold

(802)

(303)

Cost with construction of concession assets 25

(142,794)

(162,179)

External supplies and services 27

(40,537)

(44,028)

Personnel costs 28

(53,049)

(53,599)

Depreciation and amortizations 8

(202,628)

(201,242)
Provisions 22

(1,449)

212
Impairment 14 and 15

(28)

5,296
Other expenses 29

(11,795)

(12,750)

Operating costs

(453,082)

(468,593)

Operating results

302,960

320,252

Financial costs 30

(131,735)

(162,703)
Financial income 30

9,001

12,917
Investment income - dividends 13

8,569

7,557

Financial results

(114,165)

(142,228)

Profit before income tax

188,795

178,023

Income tax expense 11

(50,953)

(56,720)
Energy sector extraordinary contribution (ESEC) 35

(25,065)

-

Net profit for the year

112,777

121,303

Attributable to:

  

Equity holders of the Company

112,777

121,303
Non-controlled interest

-

-

Consolidated profit for the year

112,777

121,303

Earnings per share (expressed in euro per share)

31

0.21

0.23

    The accompanying notes form an integral part of the consolidated statement of profit and loss for the year ended 31 December 2014.

    The Accountant                                                                    The Board of Directors




Consolidated statements of other comprehensive income for the years ended 31 December 2014 and 2013

Year ended

Notes

'14

'13

Consolidated Net Profit for the period

112,777

121,303

Other income and cost recorded in equity:

  

Items that will not be reclassified to profit or loss:

  

Actuarial gains / (losses) - gross of tax 21

(2,652)

(21,987)
Tax effect on actuarial gains / (losses) 11

(1,658)

8,955

Items that are or may be reclassified to profit or loss:

  

Increase/(decrease) in hedging reserve - derivative financial instruments 16

(1,282)

12,069
Tax effect on hedging reserves 11 and 16

(198)

(3,445)
Fair value reserve - available-for-sale assets 13

49,987

25,784
Tax effect on fair value reserves 11 and 13

(10,560)

(805)
Other comprehensive income from associates, net of tax effects

-

223
Effect of the tax rate on items recognized directly in equity 11

237

-

Comprehensive income for the year

146,652

142,096

Attributable to:

  

Shareholders of the Company

146,652

142,097
Non-controlling interests

-

-

146,652

142,097

    The accompanying notes form an integral part of the consolidated statement of comprehensive income for the period ended 31 December 2014.

    THE ACCOUNTANT                                                          THE BOARD OF DIRECTORS




Consolidated statements of changes in equity for the years ended 31 December 2014 and 2013

(Translation of consolidated statements of changes in equity originally issued in Portuguese - Note 38)

(Amounts expressed in thousands of Euros – tEuros)

Attributable to shareholders

Changes in the period

Notes

Share capital

Own shares

Legal Reserve

Fair Value reserve (Note 13)

Hedging reserves (Note 16)

Other reserves

Retained earnings

Profit for the period

Non-controlling
interests

Total

At 1 January 2013

534,000

(10,728)

85,437

(4,093)

(26,612)

177,022

149,002

123,561

-

1,027,589

Net profit of the period and other comprehensive income

- - - 24,979 8,624 223 (13,032) 121,303

-

142,097

Transfer to other reserves - - 6,055 - - - 117,507 (123,561) -

-

Distribution of dividends 32
- - - - - - (90,120) - -

(90,120)

At 31 December 2013

534,000

(10,728)

91,491

20,886

17,989

(177,245)

163,356

121,303

-

1,079,566

At 1 January 2014

534,000

(10,728)

91,491

20,886

17,989

(177,245)

163,356

121,303

-

1,079,566

Net profit of the period and other comprehensive income - - - 39,427 (1,480) 237 (4,310) 112,777

-

146,652

Transfer to other reserves

- - 5,804 - - - 115,500 (121,303) -

-

Distribution of dividends 32
- - - - - - (90,650) - -

(90,650)

At 31 December 2014

534,000

(10,728)

97,295

60,313

(19,468)

177,481

183,896

112,777

-

1,135,567

    The accompanying notes form an integral part of the consolidated statement of changes in equity for the year ended 31 December 2014.

    THE ACCOUNTANT                                                          THE BOARD OF DIRECTORS




Consolidated statements of cash flow for the years ended 31 December 2014 and 2013

(Translation of consolidated statements of cash flow originally issued in Portuguese - Note 38)

(Amounts expressed in thousands of Euros – tEuros)

Year ended

Notes

'14

'13

Cash flow from operating activities:

  

Cash receipts from customers

2,459,520 a)

2,056,635 a)
Cash paid to suppliers

(1,841,765) a)

(1,391,110) a)
Cash paid to employees

(62,993)

(63,160)
Income tax received/paid

(98,159)

(8,510)
Other (payments)/receipts relating to operating activities

(87,190)

(87,567)

Net flows from operating activities

369,413

506,287

Cash flow from investing activities:

  

Receipts related to:

  

Other financial assets 17

22,728

207,264
Investment grants 23

1,154

5,051
Interests and other similar income

7,510

8,160
Dividends 13

8,422

7,493

Payments related to:

  

Other financial assets 17

-

(210,000)
Capital contributions in Associates and Joint Ventures 10

-

(2,910)
Available-for-sale 13

(100)

(100)
Property, plant and equipment

(8)

(498)
Intangible assets

(127,510)

(162,687)

Net cash (used in)/from investing activities

(87,806)

(148,227)

Cash flow from financing activities:

  

Receipts related to: 18

  

Borrowings

4,580,500  

2,404,391

Interests and other similar income

73

17
Payments related to:

  

Borrowings

(4,700,564)

(2,403,135)
Interests and other similar expense

(125,493)

(163,334)
Dividends 32

(90,650)

(90,120)

Net cash (used in)/from financing activities

(336,134)

(252,180)

Net (decrease)/increase in cash and cash equivalents

(54,527)

105,880
Cash and cash equivalents at de beginning of the year 17

167,126

61,246

Cash and cash equivalents at the end of the period

17

112,599

167,126

Detail of cash and cash equivalents

  

Bank overdrafts

17

(1,659)

(861)
Bank deposits 17

114,258

167,987

112,599

167,126

    a) These amounts include payments and receipts relating to activities in which the Group acts as agent, income and costs being reversed in the consolidated statement of profit and loss.

    The accompanying notes form an integral part of the consolidated statement of cash flow for the year ended 31 December 2014.

    THE ACCOUNTANT                                                       THE BOARD OF DIRECTORS

6.1.1 A Voting Rights

I. Capital Structure



I.1. Voting rights (capital, number of shares, distribution of capital among shareholders, etc.), including information on shares not admitted to trading, different classes of shares, inherent rights and duties and percentage of capital which each class represents (art. 245(A)(1)(a)


The share capital of REN – Redes Energéticas Nacionais, SGPS, S.A. (REN or the company) in the amount of €534 000 000 is represented by 534 000 000 Class A shares with a face value of €1.00, in the form of nominative book-entry shares.



Class A shares are ordinary shares that do not grant special rights to their holders, beyond the general rights inherent as a shareholder, under the terms of legislation.



Until the conclusion of the second REN privatization phase in June 2014, 58 740 000 Class B shares existed, and not admitted to trading, representing 11% of REN capital and which corresponded to shares to be privatized held by are shares to be privatized held by Parpública – Participações Públicas (SGPS) S.A. and the Caixa Geral de Depósitos, S.A. and the only special entitlement they had was that they did not subject holders, on their own behalf or when representing other shareholders, 
to the voting limitation set out in Article 12(3) of the Articles of Association (see I.5)

.

After the second REN privatization phase was concluded, these shares were automatically converted into Class A shares, as in accordance with Article 4 of the Articles of Association, the transfer of Class B shares to non-public entities, pursuant to the conclusion of a phase of REN’s privatization process, determines the automatic conversion of Class B shares into Class A shares. This conversion does not require the approval of the holders or deliberation by any of the company's bodies.



On 31 December 2014, all of REN’s class A shares, corresponding to code PTREL0AM0008, were admitted to trading on NYSE Euronext Lisbon (Eurolist by Euronext), with the exception of 213 600 000 shares held by State Grid Europe Limited and Mazoon B.V. (see I.2.).

VOTING RIGHTS AS OF 31 DECEMBER 2014

I.2. Restrictions on the transferability of shares, such as consent clauses for disposal, or limitations on ownership of shares (art. 245(A)(1)(b).

No restrictions exist and REN has not implemented any measures which hinder the transferability of shares. REN shares are freely tradable on the regulated market, without prejudice to legal restrictions (lock up) laid down within the scope of the second phase of REN privatization and applicable to State Grid International Development Limited (133,500,000 shares acquired by the vehicle company State Grid Europe Limited – 'SGEL') and to Oman Oil Company (80,100,000 shares acquired by the vehicle company B.V.). These shareholders acquired their holdings in the direct reference sale process concluded in 2012. In accordance with Article 5 of Decree-Law No 106-B/2011 of 3 November, and Council of Ministers Resolutions No 10/2012 of 19 January and No 13/2012 of 8 February, the shares acquired by SGEL and Mazoon B.V. were subject to periods of unavailability. In accordance with the abovementioned laws and the legal instruments laid down with regard to shares, these periods of unavailability shall remain in effect until 00.00 on 25 May 2016 (in the case of State Grid International Development Limited and SGEL) and until 23.59 on 24 May 2016 (in the case of Oman Oil Company and Mazoon B.V.). The unavailability of the shares in question includes any situations relating to their transfer or partial or total encumbrance, directly or indirectly (even when coming into effect in the future, more specifically through promissory and options contracts). Other unavailability includes the establishing of legal business with regard to the shares which require the exercising of the respective voting rights in a specific manner or through an intermediary, with certain exceptions set out in the legal instruments established with the acquiring parties.

With respect to ownership limitations on shares, in accordance with legislation, no entity, including entities which conduct business in the respective sector in Portugal or abroad, can have direct or indirect holdings greater than 25% of REN equity capital1.

These limitations on the ownership of REN shares were introduced further to the transposition of community directives applicable to the electricity and natural gas sectors with regard to the legal and ownership separation between the transmission operator using those assets and the operators who conduct other activities in each of the sectors. The aim of these directives is to promote competition in the market and equal access by operators to the transmission infrastructures.

Therefore, limitations on the transferability and ownership of shares are exclusively due to legal and regulatory requirements, and the CMVM Corporate Governance Code does not apply. As such, the non-implementation of recommendation I.4. of the CMVM Corporate Governance Code is fully justified.

With regard to limitations on voting rights, see I.5 below on the limitations expressed in the Articles of Association arising from the legal system applicable to the electricity and gas sectors.

I.3. Number of own shares, percentage of corresponding capital and percentage of voting rights to which own shares would correspond (art. 245(A)(1)(a)

REN has 3,881,374 own shares, with a face value of 10,728,000.00 euros, representing 0.7% of its capital. These shares would correspond to 0.7 % of voting rights.

I.4. Significant agreements to which REN is a party that would come into force, be amended or terminate in the event of a change in control over the Company, as the result of a takeover bid, as well as the respective effects, except if, due to their nature, the disclosure of which would be seriously prejudicial for the Company, except if the Company is specifically required to disclose this information due to other legal requirements (Art. 245(A)(1)(j)

REN and its subsidiaries are party to a number of financing contracts and debt issues which include clauses on change in control which are typical of such transactions (covering, although not expressly stated, changes to control arising from takeover bids) and essential for carrying out such transactions on the market.

However, the practical application of these clauses is limited, considering the legal restrictions on the ownership of REN shares as explained in I.2.

There are no significant agreements to which REN is a party that would come into force, be amended or terminate in the event of a change in control over the Company or as the result of a takeover bid.

In summary, REN has not adopted any measures aimed at requiring payment or the taking on of charges by the Company in the event of changes in control or to the composition of the Board of Directors and which would be liable to prejudice the free transferability of shares or the free appreciation by shareholders of the performance of members of the Board of Directors, and the recommendation I.5 of the CMVM Corporate Governance Code has thus been complied with.

I.5. System which is subject to renewal or repeal of defensive measures, particularly those which limit the number of votes liable to be held or exercised by a sole shareholder in an individual manner or jointly with other shareholders

The only provision in the REN Articles of Association which limits votes liable to be held or exercised by a sole shareholder in an individual manner or jointly with other shareholders, is Article 12(3).

This Article stipulates that the votes attached to Class A shares shall not be counted if issued by any shareholder, on their own behalf or as the representative of another shareholder, which exceed 25% of the total votes corresponding to REN share capital. Considered for this purpose are the rights to vote inherent to Class A shares which, pursuant to Article 20(1) of the Securities Code, are attributable to them.  

Article 12(3) of the Articles of Association is the result of the legal requirement set out in I.2. and does not seek to limit voting rights, but rather to ensure the existence of a penalty system for breaching the legal limit on the ownership of the abovementioned shares, and therefore, recommendation I.3. of the CMVM Corporate Governance Code is fully complied with.

As such, there is no mechanism in the Articles of Association to renew or repeal this statute, as it exists in compliance with legal requirements. Therefore, recommendation I.4. of the CMVM Corporate Governance Code is fully complied with.

There are no other defensive measurements.

I.6. Shareholder Agreements which the company is aware of and which could lead to restrictions with regard to the transfer of securities or voting rights (Art. 245(A)(1)(g)

The Board of Directors is not aware of any shareholders agreements in relation to REN that may result in any restrictions to the transfer of securities or exercising of voting rights.



II. Holdings and bonds held

II.7. Identification of natural or legal persons which, directly or indirectly, own qualified holdings (Art. 245(A)(1)(c) and (d) and Art. 16, with detailed information on the percentage of capital and attributable votes and the source and causes of such attribution

Taking into account the communications submitted to the Company in accordance with Article 447 of the Portuguese Companies Code, Article 16 of the Portuguese Securities Code and Article 14 of CMVM Regulation No 5/2008, with reference to December 31, 2014, shareholders holding qualified shareholdings representing at least 2% of REN’s share capital, calculated in accordance with Article 20 of the Portuguese Securities Code, were as follows:

STATE GRID CORPORATION OF CHINA

Nº OF SHARES

% CAPITAL WITH VOTING RIGHTS

Directly 0 0%

Through State Grid Europe Limited (SGEL),

which is controlled by State Grid International

Development Limited (SGID), which is controlled

by the State Grid Corporation of China

133,500,000

25.0%

Total Attributable

133,500,000

25.0%

OMAN OIL COMPANY SAOC

Nº OF SHARES

% CAPITAL WITH VOTING RIGHTS

Directly 0 0%

Through Mazoon BV, which is controlled

by the Oman Oil Company SAOC

80,100,000

15.0%
Total Attributable

80,100,000

15.0%

GESTMIN, SGPS, S.A. (GESTMIN)2

Nº OF SHARES

% CAPITAL WITH VOTING RIGHTS

Directly

31,046,951

5.81%

Through Manuel Carlos de Melo Champalimaud,

as majority shareholder of Gestmin

and Chairman of the Board of Directors.

280,000

0.05%
Total Attributable

31,326,951

5.86%

EDP - ENERGIAS DE PORTUGAL, S.A. (EDP)

Nº OF SHARES

% CAPITAL WITH VOTING RIGHTS

Directly

18,690,000

3.5%

Through the EDP Pension Fund, which is controlled by EDP

8,017,335

1.5%

Total Attributable

26,707,335

5.0%

OLÍREN, SGPS, S.A.

Nº OF SHARES

% CAPITAL WITH VOTING RIGHTS

Directly

26,700,000

5.0%
Total Attributable

26,700,000

5.0%

RED ELÉCTRICA CORPORACIÓN, S.A.

Nº OF SHARES

% CAPITAL WITH VOTING RIGHTS

Directly

26,700,000

5.0%
Total Attributable

26,700,000

5.0%

FIDELIDADE COMPANHIA DE SEGUROS, S.A.3

Nº OF SHARES

% CAPITAL WITH VOTING RIGHTS

Directly

26,165,975

4.90%

Through Via Directa – Companhia de Seguros, S.A.,

which is controlled by Fidelidade

95,816

0.018%

Through Companhia Portuguesa de Resseguros, S.A.,

which is controlled by Fidelidade

30,000

0.006%

Through Cares – Companhia de Seguros, S.A.,

which is controlled by the common shareholder LongRun4

78,907,00

0.015%

Through Multicare – Seguros de Saúde, S.A.,

which is controlled by the common shareholder LongRun5

50,726,00

0.009%
Total Attributable

26,421,424

4.94%

EGF, GESTÃO E CONSULTORIA FINANCEIRA, S.A. (EGF)6

Nº OF SHARES

% CAPITAL WITH VOTING RIGHTS

Directly

5,809,991

1.09%
Through Logofinance, S.A., which is controlled by EGF

9,857,183

1.85%

Total Attributable

15,667,174

2.94%

II.8. Information on the number of shares and bonds held by members of management and supervisory bodies

In accordance with and for the purposes of Article 447 of the Portuguese Companies Code, in particular paragraph 5 thereof, the number of shares held by the members of the REN management and supervisory bodies and by the persons related to them pursuant to paragraph 2 of the abovementioned article, as well as all their acquisitions, encumbrances or disposals with reference to the financial year 2014 were as follows:

AUDIT COMMITEE

ENCUMBRANCES

DISPOSALS

Nº OF SHARES AT 31.12.2014

José Luís Alvim - - 0 (zero)
José Frederico Jordão - - 0 (zero)
Aníbal Santos – appointed by Parpública - Participações Públicas (SGPS), S.A. - -

10.2508

BOARD OF DIRECTORS

ACQUISITIONS

ENCUMBRANCES

DISPOSALS

Nº OF SHARES AT 31.12.2014

Emílio Rui Vilar 10 000 - - 10 390
Gonçalo Morais Soares - - - 0 (zero)
João Faria Conceição - - - 500
Guangchao Zhu – representing SGID - - -

133 500 0009

Mengrong Cheng - - - 0 (zero)
Longhua Jiang - - - 0 (zero)
Hilal Al-Kharusi - - - 0 (zero)
Rodrigo Costa - - - 0 (zero)
Manuel Champalimaud – appointed by Gestmin - - -

31 326 95110

José Folgado Blanco – appointed by Red Eléctrica Corporación, S.A. - - -

26 700 00011

José Luís Arnaut - - - 0 (zero)
Francisco João Oliveira – appointed by OLIREN, SGPS, S.A. - - -

26 700 00012

BOARD OF DIRECTORS

ACQUISITIONS

ENCUMBRANCES

DISPOSALS

Nº OF SHARES AT 31.12.201413

Rui Cartaxo - - -

19 16214

BOARD OF DIRECTORS

ACQUISITIONS

ENCUMBRANCES

DISPOSALS

Nº OF SHARES AT 31.12.201415

Filipe de Botton (appointed by EGF)
- - 963 493 44 056 173

BOARD OF DIRECTORS

ACQUISITIONS

ENCUMBRANCES

DISPOSALS

Nº OF SHARES AT 31.12.201416

Haibin Wan - - - 0 (zero)
Luís Amado - - - 0 (zero)

At 03 April 2014, members of the REN management and supervisory bodies held the following bonds issued by REN:

BOARD OF DIRECTORS

ACQUISITIONS

ENCUMBRANCES

DISPOSALS

Nº OF SHARES AT 31.12.201417

Rui Cartaxo - - - 1

Without prejudice to that noted in the table above, as of December 31, 2014, the members of the REN management and supervisory bodies and those related to them pursuant to Article 447(2) of the Portuguese Companies Code did not hold any other bonds issued by REN nor shares or bonds issued by companies in a group or controlling relationship with REN, nor did they carry out any transactions relating to those securities in 2014, in both cases pursuant to and for the purposes of the abovementioned Article 447.

II.9 Special powers of the management body with regard to deliberations on increasing capital (Art. 245(A)(1)(i), with information on the deliberations referring to the data on which they were attributed, time limit until such competence may be exercised, maximum quantitative limit on capital increase, amount already issued under the attribution of such powers and method of applying the powers attributed

The Board of Directors has the competences and powers conferred by the Portuguese Companies Code and the Articles of Association18 (see summary of these competences and powers in II.21), and as such the management body does not have special powers.

In particularly, with regard to deliberations on increasing capital, it should be noted that the REN’s Articles of Association do not authorize the Board of Directors to increase the Company’s share capital.

II.10. Information on significant relationships of a commercial nature between the owners of qualified holdings and the Company

In accordance with internal regulations on the appreciation and control of transactions with related parties19 and prevention of conflict of interests20, significant transactions with related parties are considered to be those which:

a)    are based on the purchase and/or sale of assets, provision of services or a contracted project with an economic value greater than one million euros;
b)    based on the acquisition or disposal of shareholdings;
c)    require new loans, financing or subscription of financial investments resulting in an overall annual indebtedness exceeding €100 000 000, except when referring to a simple renewal of existing circumstances or operations undertaken within the framework of pre-existing contractual conditions;
d)    should none of the materiality criteria set out in the subparagraphs above be met, (i) which have a value exceeding €1 000 000 or (ii) are considered relevant for this purpose by the management body, by virtue of its nature or its particular susceptibility to giving rise to a conflict of interests.

The Board of Directors is required to submit significant transactions with related parties (a concept which, in accordance with those regulations, includes owners of qualified holdings pursuant to Article 20 of the Securities Market Code) to the Audit Committee for prior appreciation21. Therefore, transactions considered significant are subject to prior opinion from the Audit Committee, while others are only subject to subsequent appreciation.

Moreover, in accordance with the Board of Directors internal regulations, transactions with related parties for sums exceeding €500 000 or, regardless of the sum, and transaction which may be considered as not being executed under market conditions are matters which may not be delegated to the Executive Committee.

In light of the abovementioned criteria – set out in Board of Directors regulations and in internal regulations on the appreciation and control of transactions with related parties and prevention of conflicts of interests – during 2014, six significant commercial transactions with related parties were seen, which were subject to prior control by the Audit Committee, as detailed below in I.90.

    1 Cf. Article 25(2)(i) of Decree-Law No 29/2006 of 15 February (with its current wording), and Article 20-A(3)(b) and Article 21(3)(h) of Decree-Law No 30/2006, of 15 February (with its current wording).

    2 The voting rights inherent to the REN shares held by Gestmin are also attributable to Manuel Carlos de Melo Champalimaud, holder of the controlling interest in Gestmin.

    3
    80% of the share capital and voting rights of Fidelidade Companhia de Seguros, S.A. is owned by LongRun Portugal, SGPS, S.A. (LongRun), which is wholly owned by Millennium Gain Limited, which is wholly owned by Fosun Financial Holdings Limited, which in turn is wholly owned by Fosun International Limited. On 11 February 2015, Fidelidade informed REN that it had obtained 5.008% of the share capital and the respecitve REN voting rights of , as described at: http://web3.cmvm.pt/sdi2004/emitentes/emit_part.cfm?num_ent=%24%21%24%3FT%23%40%20%20%0A

    4 LongRun also owns 80% of the share capital of Cares – Companhia de Seguros, S.A..

    5 LongRun also owns80% of the share capital of Multicare – Seguros de Saúde, S.A..

    6 The voting rights inherent to the REN shares held by EGF are also attributable to the company Nikky Investments, S.A., holder of the entire EGF capital and to Mr. Filipe Maurício de Botton, holder of the controlling interest in Nikky Investments, S.A.

    7 This comprises the shares held by members of the REN management and supervisory bodies and, if applicable,(i) of the spouse not judicially separated, regardless of the matrimonial property regime; (ii) of under aged descendants; (iii) of persons in whose name shares are registered, in the event that they have been acquired on behalf of a member of the management or supervisory bodies and of persons referred to in (i) and (ii); and (iv) the shares held by companies of which a member of the management or supervisory bodies and the persons referred to in (i) and (ii) are shareholders with unlimited responsibility, are engaged in the management or exercise any management or supervisory duties or hold, alone or together with the persons referred to in (i) to (iii), at least half of the share capital or corresponding voting rights.

    8 It includes the following shares: (i) 10 000 directly held shares and (ii) 250 shares held by his spouse;

    9 Guangchao Zhu is Chairman, CEO and member of the Board of Directors of SGID and Director of SGEL, which has qualified holdings corresponding to 133 500 000 REN shares.

    10 Consists of 280 000 shares held directly and 31 046 951 shares held by the shareholder Gestmin, which, due to the exercising of the position of Chairman of the management body of that company and the majority holding of the respective capital, are attributable to it.

    11 Corresponds to the shares held by Red Eléctrica Corporación, S.A., which are attributable pursuant to Article 447 of the Portuguese Companies Code, due to the exercising of the duties of Chairman of the management body of this company.

    12 Corresponds to the shares held by Oliren, SGPS, S.A., which are attributable pursuant to Article 447 of the Portuguese Companies Code, due to the exercising of the duties of member of the management body of this company.

    13 On 3 March 2014, resigned from all duties at REN. The General Meeting of 3 April 2014 elected Emílio Rui Vilar as the new Chairman of the Board of Directors for the remainder of the current term of office (2012-2014).

    14 Consists of (i) 18.672 shares held directly and (ii) 490 shares held by his spouse.

    15 'EGF – Gestão e Consultoria Financeira, S.A.' and Filipe de Botton (put forward by EGF for appointment to the position in his own name) resigned as member of the Board of Directors on 21 April 2014. On 8 May 2014, the Board of Directors decided to replace them, through co-opting by the company OLIREN, SGPS, S.A., which put forward Francisco João Oliveira for appointment to the position in his own name. This co-opting shall be subject for ratification at the next REN General Shareholders' Meeting.

    16 On 16 December 2014, Haibin Wan and Luís Amado resigned as members of the REN Board of Directors. On 17 December 2014, the Board decided to replace them and co-opt for Rodrigo Costa and Longhua Jiang, for the remainder of the current term of office, 2012-2014. This co-opting shall be subject for ratification at the next REN General Shareholders' Meeting.

    17 On 3 March 2014, resigned from all duties at REN. The General Meeting of 3 April 2014 elected Emílio Rui Vilar as the new Chairman of the Board of Directors for the remainder of the current term of office (2012-2014).

    18 Cf. Article 15(1) of the Articles of Association and Article 3(2) and (3) of the Board of Directors Regulations.

    19 The definition of related party in accordance with this regulation includes owners of qualified holdings.

    20 Cf. section II, paragraph I., p. 3.

    21 Cf. section III, p. 3 and section VI, p.5.
Annual Report
2014
A formula for success
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01
Message from 
the Chairman
The improvement in the Company’s financial structure was recognized in June 2014, with the awarding of an ‘investment grade’ rating by Moody’s.
02
Ren at glance A REN’s core business consists of the management of energy transmission systems and we are present in the electricity and natural gas markets.
03
Management 
Report
The excellence we have achieved in Portugal has generated a unique set of capacities which, when combined with an above-average operating efficiency, has opened new frontiers for international business. Expertise, experience and performance come together in a winning combination.
04
SUSTAINABILITY 
AT REN
05
CONSOLIDATED 
AND INDIVIDUAL ACCOUNTS
06
Corporate 
Governance

Contacts

If you want to know more, make a request, a comment or suggestion send us a form. We will answer as soon as possible.

Contacts
Investor Relations Office

Ana Fernandes
(Head)

Alexandra Martins

Telma Mendes


REN - Redes Energéticas Nacionais, SGPS, S.A. Relações com o Investidor

Avenida dos Estados Unidos da América, 55 1749-061 LISBOA - Portugal

Telephone: 210 013 546 
Telefax: 210 013 150 
E-mail: ir@ren.pt

Communication and Sustainability

Margarida Ferreirinha
(Head)

REN - Redes Energéticas Nacionais, SGPS, S.A. Relações com o Investidor

Avenida dos Estados Unidos da América, 55 1749-061 LISBOA - Portugal

Telephone: 210 013 500 
Telefax: 210 013 150 
E-mail:  comunicacao@ren.pt

Financial glossary
C
CAPEX

Capital expenditure on acquisitions andupgrades of tangible fixed assets

D
DEBT TO EQUITY RATIO

Net debt/equity

DIVIDEND PER SHARE

Ordinary dividend / total number of shares outstanding

E
EBIT

Earnings before interest and taxes 

EBITDA

Earnings before interest, taxes, depreciation and amortisation (operating profit, excluding amortisation and depreciation)

N
NET DEBT

Short and long-term financial debt – cash balances

O
OPEX

Operational expenditure 

P
PAYOUT RATIO

Ordinary dividend/net profit

R
RAB

Regulated Asset Base 

RCCP

Current ROE

RETURN ON ASSETS (ROA)

EBIT/total assets

RETURN ON EQUITY (ROE)

Net profit/Equity

T
TURNOVER

Sales plus services provided

V

VAB

Gross Value Added

Technical glossary
A

AA1000APS

Accountability Principles Standard (2008)

 

AA1000AS

AccountAbility Assurance Standard  - 2008

AAE

Strategic Environmental Assessment

ACER

Agency for the Cooperation of Energy Regulators

ACT

Collective Labour  Agreement

AGC

Natural Gas Consumption Management Agreement

 

AIA

Environmental Impact Assessment

APAI

Portuguese Association for Impact Assessment

APOM

Portuguese Association of Museology

B
BV

Block Valve Station

C
CAE

Energy Emission Contracts

CAM NC

Code on Capacity Allocation Mechanisms

CCE

Economic Cooperation Council

CDP

Carbon Disclosure Project

CEF

European interconnection mechanism

CELE

European Union Emission Trading Scheme

CEM 

Electric and Magnetic Fields

CEO

Chief Executive Officer

CER

Certified Emissions Reductions

CESE

Extraordinary Contribution on the Energy Sector

CESUR

Power Purchase Agreements for the Supplier of Last Resort

CFO

Chief Financial Officer

CGD

Caixa Geral de Depósitos

CIBIO

Research Center in Biodiversity and Genetic Resources

CIGRÉ

International Council on Large Electric Systems

CIT

Individual Employment Contract

CMEC

Contracts for the Maintenance of the Contractual Equilibrium

CMVM

Portuguese Securities Market Regulator

CO2

Carbon dioxide (greenhouse gas)

COTEC Portugal

Business Association for Innovation

CPP

Portuguese Paralympics Committee

CSC

Commercial Companies Code

CTO

Chief Technology Officer

CTS

Custody Transfer Station

D
DGEG

Department of Energy and Geology

E

ECB

European Central Bank

ECSI

European Customer Satisfaction Index

EDP

Energias de Portugal, S.A.

EEGO

Issuing Entity for Cogeneration Guarantees of Origin   

EGIG

European Gas pipeline Incident Data Group

EIA

Environmental Impact Assessment

EIB

European Investment Bank

EIT

Equivalent Interruption Time

Elecpor

Portuguese Association of Companies in the Electricity Sector 

EMTN

Euro Medium Term Notes

ENF

Non Supplied Energy

ENTOS-E

European Network of Transmission System Operators for Electricity

ENTSO-G

European Network of Transmission System Operators for Gas

EPIS

Entrepreneurs for Social Inclusion

ERSE

Energy Services Regulatory Authority

ESOMAR

European Society for Opinion and Marketing Research Association

ESS

Power Systems

ESW-CBA

Energy System-Wide Cost-Benefit Analysis

ETS

Emissions Trading Scheme

EUA

European Unit Allowances

EUPORIAS

European Provision of Regional Impacts Assessments and Decadal Timescales

F

FCCN

Foundation for National Scientific Foundation

FED

Federal Reserve System

FOSG

Friends of the Supergrid

FP7

7th Framework Program of the European Community on research, technological development and demonstration activities

FSR

Florence School of Regulation

G

GDP

Gross Domestic Product

GGS

Global System Management

GHG

Greenhouse gases

GIS

Armoured Substation Buildings

GLE

Gas LNG Europe

GNL

Liquefied Natural Gas

GPPQ

Gabinete de Promoção do Programa Quadro de I&DT

GRI

Global Reporting Initiative

GRMS

Gas Regulating and Metering Station

GSAD-AI

Corporate Governance Audit-Internal Audit

GSE

Gas Storage Europe

GTBI

Gas Transmission Benchmarking Initiative

GVA

Gross Value Added

H
HICP

Harmonised Index of Consumer Prices

HV

High Voltage

I
ICE

Intercontinental Exchange

ICETA

Institut of Agricultural Science and Technology and Agro-food of University of Porto

ICJCT

Interconnection Junction Station

IEA

International Energy Agency

IES

Independent Electricity System

IFRS

International Financial Reporting Standards

IGEN

Company Forum for Gender Equality

IGU

Independent Gasification Units

INE

Portuguese Institute of Statistics

INERPA

National Inventory of Atmospheric Emissions

INESC

Institute of Systems and Computer Engineering

IOPS

Official Social Welfare Institutions

IP

Internet Protocol

IPCG

Portuguese Institute for Corporate Governance

IPCTN09

Survey of the National Scientific and Technological Potential, 2009

IPSS

Private Institutions of Social Solidarity

IRC

Corporate Income Tax

ISAE 3000

INTERNATIONAL Standard on Assurance Engagements 3000

ISDA

International Swap and Derivatives Association

ISO

International Organization for Standardization 

ISPS

International Ship and Port Security Code

ISQ

Welding and Quality Institute

IST – Instituto Superior Técnico

Higher Technical Institute

iTELSA

Innovative Tools for Electrical System security within Large Areas

ITOMS

International Transmission Operations & Maintenance Study

IUCN

International Union for conservation of Nature

J
JCT

Junction Station

K
KPI

Key Performance Indicator

L
LNEG

National Laboratory for Energy and Geology

LNG

Liquefied natural gas

M

MAIFI

Momentary Average Interruption Frequency Índex

MBA

Master of Business Administration

MC

Market Committee

MEC

Portuguese Ministry of Science and Education

MEDGRID

Consortium with the goal of promoting the development of electrical interconnections between the North, South and East Mediterranean

MERGE

Mobile Energy Resources for Grids of Electricity

METSO

Mediterranean Transmission System Operators

MIBEL

Iberian Electricity Market

MoDPEHS

Modular Development of a pan-European Electricity Highway System

Movement ECO

Companies Against Fires

MTVR

Medium-term Parcel

N

NC TAR

Network Code Tariff

NG

Natural Gas

O
OECD

Organisation for Economic Co-operation and Development

OHSAS

Occupational Health and Safety Advisory Services

OMEL

Operador del Mercado Ibérico de Energía – Polo Español, S.A. [Spanish Cluster]

OMI

Iberian Market Operator

OMICLEAR

Sociedade de Compensação de Mercados de Energia, S.A.

OMIP

Operador do Mercado Ibérico de Energia Energía (Pólo Português), S.A. [Portuguese Cluster]

OPEC

Organization of the Petroleum Exporting Countries

P

PDIRGN

Development and Investment Plan of the RNTIAT

PDIRT

Development and Investment Plan of the RNT

PEGASE

Pan European Grid Advanced Simulation and state Estimation

PICs

Projects of Common Interest

PRE

Subsidised producers

Q
QAS

Quality, Environment and Safety

QP

Permanent Staff

QSR

Quality of Service Regulation

QUERCUS

National Association for Nature Conservation

R
R&D

Research & Development

RECAPE

Environmental Compliance Report on the Execution Project

REE

Red Eléctrica de España

RENTELECOM

RENTELECOM – Comunicações, S.A.

RESP

Public Service Power Networks

RETGS

Special Regime for the Taxation of Group Companies

RH

Human Resources

RNDGN

National Natural Gas Distribution Network

RNT

National Electricity Transmission Network

RNTGN

National Natural Gas Transmission Network 

RNTIAT

National Natural Gas Transmission Network, Storage Infrastructure and LNG Terminals

RTE

Reseau de Transport d’Electricité

S

S-GRI

South Gas Region Initiative

S. A.

Corporacion

SAIDI

System Average Interruption Duration Índex

SAIFI

System Average Interruption Frequency Índex

SARI

System Average Restauration Índex

SDC

System Development Committee

SDH

Synchronous Digital Hierarchy

SEN

National Electricity System

SEP

Public Electricity Supply System

SEVESO

Decree-Law No. 254/2007, of 12 July 2007, transposes Directive SEVESO II 2003/105/EC (which amends Council Directive 96/82/EC of 9 December 1996) into national law, and reconfigures the regime for the prevention and control of major-accident hazards involving dangerous substances and the limitation of their consequences for man and the environment, repealing Decree-Law No. 164/2001 of 23 May 2001 and Implementing Order (Portaria) No. 193/2002 of 4 March 2002.

SGCIE

Intensive Energy Consumption Management System

SGNL

Sociedade Portuguesa de Gás Natural Liquefeito, S.A.

SGPS

Holding Company

SIFIDE

System of Tax Incentives for Research and Development

SIGQAS

Integrated Management System for Quality, Environment and Safety

SNGN

National Natural Gas System

SPF

Portuguese Physical Society

SS

Substation

STVR

Short-term Parcel

T
TEE

Transmission of Electrical Power

TGO

Transmission Grid Operators

TSO

Transmission System Operators

U
UGS

Tariff of Global Use of the System

URT

Tariff of Use of the Transmission Network

US

Underground Storage

V
VHV

Very High Voltage

UNTS
B
bcm

109 cubic metres

C
cent

Euro cents

CO2

Carbon dioxide

E
EUR

Euro

G
GHz

Gigahertz

GJ

Gigajoule

GW

Gigawatt

GWh

Gigawatt hour

K
k€

Thousand of Euro

km

Kilometre

kV

Kilovolt

kWh

Kilowatt hour

M

m3

Cubic metre

m3(n)

Normal cubic metre (volume of gas measured at 0o Celsius and at the pressure of 1 atmosphere)

M€

Million Euros 

mEuros

Thousand of Euro

MVA

Megavolt‐ampere

Mvar

Megavoltampere reactive

MW

Megawatt

MWh

Megawatt hour

P
p.p.

Percentage points

S
s

Second

T
t

Tonne

tcm

1012 cubic metres

tCO2eq

Tonne of CO2 equivalent 

TWh

Terawatthour

Euro