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Portugal: Watchdog finds mishaps in payment to former energy monopoly

 |  November 28, 2013

Portugal’s competition regulator has reportedly suggested that the government revise its regulations that are currently allowing state compensation to former monopoly Energias de Portugal following the liberalization of the nation’s energy sector following findings that those payments harm competition.

The scheme, known as the costs of maintaining contractual balance, offers compensation to EDP after the company agreed to surrender long-term agreements with the market in order to allow new entrants. Those payments, however, are found to have harmed competition.

As a result, the regulator “recommended that the government revise the compensatory system so as to eliminate the negative effects on competition,” the Competition Authority said Thursday.

The authority has recommended an independent audit to review the payment systems.

Full Content: Reuters

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