The advisory council of the Portuguese Attorney General’s Office (PGR) has affirmed the continued validity of Decree-Law No. 424/83 from December 6, which mandates an annual payment to municipalities affected by electricity production centers.
The council noted, “The fact that one of the necessary indices for calculations, as outlined in Articles 2 and 3 of Decree-Law No. 424/83, is no longer published by ERSE [Energy Services Regulatory Authority], is not enough to declare this legal statute or any of its provisions void. It only affects the method of quantifying the rent value, not the right stipulated in Article 1 of the same decree-law.”
The opinion states the legal provision remains fully effective, ensuring municipalities hosting power plants receive annual compensation. This compensation acts as public consideration for the use of land and the potential environmental and social impacts of energy production.
The PGR concludes that subsequent energy sector legislation has not revoked or contradicted this right. It also recommends updating the legal framework to mirror the current reality of the energy sector, including new methods of production and exploration.
“This safeguards the legal rent regime for municipalities by the holders of power production centers, as outlined in Decree-Law No. 424/83. However, the new system of concessions and compensations, established in Article 49, applies if the reservation of injection capacity in the RESP [Public Service Electrical Network] by power production centers occurs after January 15, 2022. Thus, the municipal rent regime provided in Decree-Law No. 424/83 is not repealed by the mere enactment of Decree-Law No. 15/2022 on January 15, 2022,” it argues.
The president of the National Association of Portuguese Municipalities (ANMP), Luísa Salgueiro, considers this opinion “very relevant,” acknowledging that “it essentially supports the claims of the municipalities.”
“It is an opinion that can have a very positive impact on municipalities with power production centers, which is beneficial for the territories,” she concludes.
