The distribution networks in Portugal are regulated and fall into three categories:
The remuneration rules for this operation are established by the Energy Services Regulatory Agency (Reguladora dos Serviços Energéticos - ERSE).
Factors considered when calculating the remuneration rate include the average yield of the ten-year bonds issued by the Portuguese State.
Galp, through its associated company, Galp Gás Natural Distribution (GGND), has a stake in nine natural gas distributors in Portugal, five of which operate under concession agreements with a duration of 40 years, whilst the remainder operate through licenses for a period of 20 years.
In 2019, through GGND, Galp operated distribution network of over 13,000 km. At the end of 2019, the regulated asset base was valued at approximately €1.1 bn.
In 2016, Galp reduced its stake in GGND to 77.5%, ceasing to consolidate the company in the Group's accounts.
Learn more about GGND here.