
Article 1 
A derogation from the relevant provisions of Chapters IV, V, VI, VII, as well as Chapter III, as far as refurbishing, upgrading and expansion of existing capacity are concerned, is granted to the Portuguese Republic for the nine isles of the archipelago of the Azores.
Article 2 
The Portuguese energy regulator shall monitor the evolution of the electricity sector of the Azores and report to the Commission any substantial change therein that may require the review of the granted derogation. A first report shall be submitted four years after the date of this decision and a second one nine years after that date.
Article 3 
This derogation is valid for an indefinite period of time. It can be reviewed by the Commission if substantial changes occur in the electricity sector of the Azores.
Article 4 
This Decision is addressed to the Portuguese Republic.
Done at Brussels, 20 December 2004.
For the Commission
Andris PIEBALGS
Member of the Commission