Concession power (compulsory power)
One of the most important rule in advantage of the local municipalities is the right to Concession power, which is electricity to the cost of production.
The energy producer is obliged to renouce electricity to the cost of production to the host municipality - cfr Act 12.14.1917 No.16 § 2 section 12, and Act 12.14.1917 No. 17 § 12 section 15.
Approxiomatialy 8 % of the produced electricity is reserved for the municipalities to cost price. This is a kind of co-ownership for the local community to a part of the electricity produced on the basis of local resources.
The municipalities can use the electricity for what they decide; they can use it for public buildings and private consumption, sell it to local buisness to that extent it is within the competition laws, or the municipality can profit by selling the electricity to full market price.