During 2014, ERSE will set out the regulatory model for the transmission of electricity that will be in force for the next multi-year period. REN has already begun dialogue with ERSE with the aim of ensuring that the new regulations remain stable, balanced and with adequate incentives for efficiency.

The Portuguese economic outlook has shown signs of improvement, following a common trend across Euro zone members. A sign of this improvement can be seen in the national consumption of electricity, which has, since May 2013, began to show faint signs of growth, growing stronger month on month.

Alongside the signs that the recession has passed its lowest point, the financial markets are beginning to regain confidence in Portugal, leading to a clear drop in the risk premiums for the country and our major companies. REN will benefit strongly from the drop in its average debt costs in 2014, all the more so given that the most costly bond issues were reimbursed in 2013. A significant challenge will be presented by minimizing any possible impact from the extraordinary contribution levied on the energy sector set out in the 2014 State Budget, which will be met through further efforts to increase operating efficiency.

In 2014, the Company will remain focused on its continued efforts to improve operating efficiency, completing the streamlining of its internal organisation, which produced benefits over the last two years. These efforts will of course be carried out whilst maintaining the standards of excellence and quality of service that our customers expect and deserve. An example of this can be seen in faultless way in which REN’s grids performed during the storms of 9th February this year. Alongside the optimisation of operations in Portugal, REN will proceed with its efforts in internationalisation and the development of new lines of business started in 2012, which has already contributed, albeit only modestly, to the 2013 result by way of thedividend received from HCB in Mozambique.

The REN team finds motivation in the new challenges that the future brings, and management will continue to invest heavily in the training and development of our people, which remains a primary objective.