Annual electricity consumption in Portugal has been sustained, reinforcing the recent trend growth electricity consumption growth, which has been superior to the economic growth, gradually reaching the per capita consumption levels of the European Union.

EDP Distribuição owns approximately 99% of the electricity distribution network in mainland Portugal - it does not own the auto-producers and small cooperatives network.

Besides the high-voltage (60 kV), medium-voltage (specifically the 30kV, 15kV and 10kV) and low-voltage overhead and underground power lines, the distribution network also consists of sub-stations, transformation posts and other equipment necessary for its exploitation. The facilities used for public lighting are also part of the distribution network.

These infrastructures are fundamental for EDP Distribuição's electricity distribution activity and their construction and exploitation are strongly related to the company's need to satisfy the increases in consumption and to guarantee the level of quality defined by the regulatory parameters and in accordance with customer expectations.

The number of electricity customers in mainland Portugal has increased, on average, by 2% each year for the past five years. By the end of 2011, the number of customers connected to EDP Distribuição network was over 6.1 million.

The EDP Group has evolved in such a way as to respond to the growing number of customers, to the increase in the levels of consumption and to the liberalization of the market. Therefore, we have been implementing a series of measures that allow for a closer relationship with the customer, consolidating an image of simplicity, comfort and social responsibility.

The company's need to adapt to new market conditions resulting from the electricity sector liberalization process imposed a priority objective of increasing customer satisfaction and loyalty, focusing on the improvement of the Quality of Service provided and promotion of EDP’s image.

The Quality of Service Regulation, approved and published by the DGGE (Direcção Geral de Geologia e Energia), includes the competencies, responsibilities and obligations in terms of Service Quality for the different agents and entities operating in the electricity sector.

Within the scope of Service Quality of the Electricity Sector, ERSE (Entidade Reguladora dos Serviços Energéticos) assures the fulfilment of the Service Quality Regulation by the different agents, namely through the annual publication of the Service Quality Report.

Technical Service Quality is measured by the TIEPI (Interruption Time Equivalent to Installed Capacity). This indicator has registered significant improvements in recent years despite the negative effects of the devastating fires that are recurrent in the summer.

This improvement in service quality is mostly due to:

• The strong investment and maintenance efforts made in recent years at the level of the distribution network;
• A combination of a vast range of technical and organisational initiatives, namely the LEAN Project, aimed at reducing the amount of time between a breakdown and the restoring of the supply in all areas of the network;
• Favourable weather conditions.

EDP has made consistent and sustained efforts to increase its productivity levels. At our electricity distribution activity in Portugal, the ratio of clients per employees, often used to measure the productivity of distribution companies, improved from some 1,000 in 2004 to 1,685 in 2011, and the ratio of electricity distributed per employees almost doubled in the same period.

Human Resources restructuring allowed for a consistent increase in operational efficiency, making it possible to serve a larger number of customers and distribute more electricity with less employees.