The 1994 Law mandated ENEE to divide its distribution network by regions. The partition, which was to be approved by ENEE, would be followed by the sale of those networks to cooperatives, municipalities, workers' associations, other similar types of groups, or to private companies, always subject to approval by the National Congress. The Law established that electricity distribution was to be carried out "in priority" by private companies under a concession regime. Distributors need to have a valid supply contract with generators for at least five years duration (however, the law does not mandate a minimum quantity).