Brief description of company business

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 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 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, SA, REN Atlântico – Terminal de GNL, SA and REN Armazenagem, SA (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 REN Telecom – 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 S. 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.

In October 2010, the Portuguese stGroup 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.

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.

With the aim of improving the Group's operational efficiency and to extend the object of REN Serviços and develop the important role that this company has come to play in the REN Group, a two-stage corporate and functional restructuring has been planned.

The first stage of this restructuring was concluded in 2011, with the constitution of REN Gás, S.A. This company is responsible for the management and coordination of activity in the natural gas sector and is now held directly by REN Serviços.

In the second stage of the reorganization, a company will be formed which will have identical functions to assist the concessions in the electricity sector.

Holdings

Further to the agreement between Portugal and Spain on the forming of an Iberian electrical power market, REN has capital holdings of 35% in OMIP, SGPS, S.A. and 10% in Operador del Mercado Ibérico de Energía, Polo Español, S.A., a company operating under Spanish law and counterpart of
OMIP SGPS, S.A..

Through these holdings in OMIP SGPS, S.A. and Operador del Mercado Ibérico de Energía, Polo Español, S.A. – whose subsidiaries OMIP, SGMR, S.A. and OMI, Polo Español S.A support the Iberian electricity market – REN is able to develop the energy market in the Iberian peninsula.

In addition to the abovementioned partnerships with the new shareholders, also of note are other important strategic partnerships, such as those which have been developed with Red Elétrica Corporación, S.A. (a company with holdings in REN) and with Enagás, S.A. REN has holdings of 1% in these companies.