The Law 12/2007, of 2nd July 2007, amending the Law on Hydrocarbons to bring it into line with Directive 1999/5/EC of the European Parliament and of the Council of 26 June 2003 concerning common rules for the internal market in natural gas established that:“The Technical Manager of the Gas System will be responsible for the operation and technical management of the Basic Network and the secondary transmission networks and will guarantee the continuity and security of supply, and the proper coordination among the access points, the storages, the transportation and the distribution.
The Technical Manager of the Gas System will execute its functions in coordination with the different agents that operate or use the gas system in a transparent, objective and independent manner.”
Among other provisions, this Law amended Chapter III of Law 34/1998 as regards the Technical Management of the Gas System
with the aim of strengthening its independence
."Enagás, Sociedad Anónima
shall assume the functions, rights and obligations of the Technical Manager of the Gas System
. To do this, it shall set up a specific Organisational Unit
, the Executive Director of which shall be appointed and removed by the company's Board of Directors, with the approval of the Ministry of Industry, Tourism and Trade.
The Unit shall perform the functions of Technical Manager of the Gas System on an exclusive basis
and in order to comply with the criteria laid down in the Law, it shall operate and keep its accounts separately
from the rest of the company's activities.
Also, the final provision six of Law 12/2011, of 27 th May (BOE 28 May 2011), added a new Additional Provision Thirty one to Law 34/1998, of 7th October, on the Hydrocarbons Sector, with the following wording:
“1. Enagás, S.A. shall create two subsidiary companies
of which it shall hold the entire share capital. These companies shall be responsible for the technical management of the system and transmission activities, respectively. For this purpose, all property, plant and equipment and all staff currently dedicated to these activities will be transferred to the new companies [...]
2. The Enagás, S.A. subsidiary which shall be responsible for the technical management of the system shall be subject to all the provisions governing this activity set down by Law 34/1998
, of 7th October, on the Hydrocarbons Sector [...]”
No private individual or corporate entity may own, directly or indirectly, more than 5% of the share capital of the parent company, or hold more than 3% of that company's voting rights [...]
The Additional Provision Six of the aforementioned Law 12/2011 also modified the Additional Provision Twenty of the Law 34/1998 of 7th Octuber, establishing that:The staff of the subsidiary company
performing the functions of Technical Manager of the Gas System must sign up to the code of conduct
referred to in Article 63 of this Law guaranteeing their independence from the rest of the activities carried out by the corporate group.
The legal requirement included in the Additional Provision Thirty one of Law 34/1998 has been perfected with effects the 2nd of July of 2012, with the inscription in the Commercial Register of the agreement for the segregation and the creation of the two newly-formed subsidiaries, Enagás Transporte, S.A.U. and Enagás GTS, S.A.U., the whole of the economic units corresponding to the functions of Enagás S.A. as gas transmission operator and as the Technical Manager of the System, respectively, including the staff and the assets and liabilities that comprise them.
For more information please contact:
Phone: 902 199 710