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law n ° 1604 law December 21, 1994
GONZALO SANCHEZ DE LOZADA CONSTITUTIONAL PRESIDENT OF LA
REPUBLIC THE HONORABLE NATIONAL CONGRESS, D E C R E T A: TITLE I GENERAL PROVISIONS Article 1. (REACH). This law rules the activities of the Electrical Industry and establishes the principles for the fixing of electricity prices and tariffs throughout the national territory. They are subject to this law, all individual and collective persons engaged in the Electrical Industry, whatever their form and place of constitution. The production of nuclear electricity will be the subject of special law. Article 2. (DEFINITIONS). For the application of this law, the following definitions are set out:
Shareholders or Linked Partners. They are those who have a direct or indirect share in the Capital of Linked Companies. Self-Production. It is the Generation intended for the exclusive use of the producer by an individual or collective person Holder of a License. Concession. It is the administrative act by which the Superintendence of Electricity, in the name of the Bolivian State, grants to a collective person the right to exercise the activity of public service of Distribution, or to exercise in the Systems Isolated, in an integrated way the activities of Generation, Transmission and Distribution. In all cases, the Public Service Concession shall be granted for a maximum period of forty (40) years. Unregulated Consumer. This is the one that has a power demand equal to or greater than a certain minimum and is in a position to hire, independently of the direct electricity supply with the Generator or Distributor or other supplier. This minimum will be fixed by the Superintendence of Electricity according to the evolution of the market. Regulated Consumer. This is the one located in the Concession area of a Distributor and necessarily supplied by it. Cargo Dispatch. It is the specific allocation of load to generating plants, to achieve the most economical and reliable supply, according to the total variations of the supply and demand of electricity, maintaining the quality of the service. Distribution. It is the activity of electricity supply to Regulated Consumers and/or Non-Regulated Consumers, through primary and secondary distribution facilities. For the purposes of this law, the activity of Distribution constitutes a public service. Distributor. It is the Electric Company, holder of a Public Service Concession that exercises a Distribution activity. Electric Company. It is the collective, public or private, national or foreign person, including the cooperatives, constituted in the country, which has obtained Concession or License for the exercise of activities of the Electrical Industry. Related Companies. They are the subsidiary, affiliated and controlling companies. One company is subsidiary to another, when the latter controls the other, and is affiliated with respect to another or other, when all are under a common control. They are controlling companies, those which are able to control others, whether for their direct or indirect participation in more than fifty percent (50%) of the capital or in more than fifty percent (50%) of the votes in the assemblies, or in the control of the management of the subsidiary or affiliated companies.
Generation. It is the power production process in power stations of any type. For the purposes of this law, the Generation in the National Interconnected System and the one destined for export, constitutes production and sale of an intangible private good. Generator. It is the Power Company, holder of a License, that exercises the activity of Generation. Electrical Industry. It is the one that comprises the Generation, interconnection, Transmission, Distribution, marketing, import and export of electricity. License. It is the administrative act by which the superintendence of Electricity, in the name of the Bolivian State, grants to an individual or collective person the right to exercise the activities of Generation and Transmission. The minima, from which License is required, will be fixed by the Superintendence of Electricity. Provisional License. It is the administrative act by which the Superintendence of Electricity, in the name of the Bolivian State, authorizes an individual or collective person to carry out studies for generation plants and installations of Transmission that requires the use and use of natural resources, the use of public domain goods and/or the imposition of the Easements, and grants its Holder the right to obtain the respective License. Provisional licences shall be issued for a maximum period of three (3) years, which may be extended for one time and for a maximum period of time, at the request of the holder. Ministry. It is the Ministry of Finance and Economic Development, and in the future he who replaces it. Node. It is the point or bar of an Electrical System intended for the delivery and/or receipt of electricity. Indicative Plan. It is the program of minimum cost of works and projects of Generation, Transmission, when applicable, and Distribution, necessary to cover the five-year growth of the demand for electricity in an Isolated System. Referential Plan. It is the minimum cost program for Generation and Transmission works and projects, necessary to cover the ten-year growth of electricity demand in the National Interconnected System, which includes projects available, regardless of who would have proposed them. Regulation. It is the activity that the Superintendency of Electricity plays, in fulfilling and enforcing this law and its regulations, ensuring the correct application of the principles, objectives and policies that are part of it. Secretariat. It is the National Energy Secretariat, and in the future it will replace it. Easement. It is the restriction or limitation to the right of property of private or public or autonomous entities, imposed as a consequence of a Concession, License or Provisional License. Isolated System. It is any Electrical System that is not connected to the National Interconnected System. Economically Adapted System. It is the Electrical System Sized in such a way that it allows the balance between the supply and the demand for electricity, seeking the minimum cost and maintaining the quality of the supply. Electrical System. It is the set of facilities for Generation, Transmission and Distribution of electricity. National Interconnected System. (SIN) It is the interconnected Electrical System that, at the date of enactment of this law, supplies electricity in the departments of La Paz, Cochabamba, Santa Cruz, Oruro, Chuquisaca and Potosí and the Electrical systems that in the future are interconnected with this. Interconnection Troncal System. (STI) It is the part of the National Interconnected System, which comprises the high voltage lines, including the corresponding substations. At the date of enactment of this law, this system includes the lines and substations of Guaracachi, Valle Hermoso, Vinto and El Kenko; Vinto, Potosí and Sucre; and Valle Hermoso, Catavi. The Superintendence of Electricity may, by resolution, redefine the facilities that make up the Troncal System of Interconnection. Holder. It is the individual or collective person who has obtained from the Superintendence of Electricity a Concession, License or Provisional License. Transmission. It is the power voltage transformation activity and its block transport from the point of delivery by a Generator, autoproducer, or other Transmitter, to the point of receipt by a Distributor, Consumer No Regulated, or other Transmitter. For the purposes of this law, the activity of
Transmission constitutes the transformation and transport of an intangible private asset subject to Regulation. Transmitter. Is the Electrical Enterprise of a License that exercises the Transmission activity. Article 3. (PRINCIPLES). The activities related to the Electrical Industry will be governed by the principles of
efficiency, transparency, quality, continuity, adaptability and neutrality.
The principle of efficiency forces the correct and optimal allocation and use of resources in the provision of electricity at minimum cost.
The principle of transparency requires the public authorities responsible for the regulatory processes established in Law No 1600 (Law of the System of Regulations). Sectoral) dated 28 October 1994 and the present law, conduct them in a public manner, ensuring access to information about them to any competent authority and persons who demonstrate interest, and that such public authorities are accountable for their management, in the form established by applicable legal rules, including the Law No. 1178 (Law of the System of Administration, Taxation and Government Control) dated July 20, 1990 and its regulations.
The principle of quality requires observing the technical requirements that the regulations establish.
principle of continuity means that the supply must be provided without interruption, be those scheduled for duly justified technical reasons, resulting in force majeure or penalties imposed on the consumer for non-compliance with his obligations or fraudulent use of electricity.
The principle of adaptability promotes the incorporation of modern technology and management systems, which bring greater quality and efficiency in the delivery of the service.
The principle of neutrality requires an impartial treatment of all companies Electric and all consumers.
Article 4. (NATIONAL NECESSITY). For the purposes of Article 25º of the Constitution of the State, in express form, the activities of Generation, interconnection, transmission, distribution, marketing, import and export of
Article 5.
Article 5. (EXPLOITATION OF NATURAL RESOURCES). The use of water and other renewable natural resources for the production of electricity will be regulated by this law and legislation in the field, taking into account its multiple, rational, integral and sustainable use.
Depending on the size of the electricity market and the rational use of primary resources, the Executive Branch may define the minimum hydroelectric participation in the capacity of the Interconnected System Generation National.
Article 6. (ENVIRONMENTAL CONSERVATION). The exercise of the Electrical Industry will be subject to the environmental legislation applicable to the sector.
Article 7. (FREE COMPETITION). Individual or collective persons engaged in the Electrical Industry will develop their activities within the framework of free competition, subject to the law.
Article 8. (CONCESSION RIGHTS AND LICENSE). The granting of Concessions and Licenses may be subject to the payment of a right, which shall be defined in the tender documents. When the Concession or License is granted directly, the amount of this right will be determined by regulation.
The amount collected for these rights will be deposited in a bank account of the Superintendence of Electricity, for the financing of electrification projects in the rural area.
Article 9. (EXPORTS, ELECTRICITY IMPORTS, AND INTERNATIONAL INTERCONNECTIONS). Exports and imports of electricity and international interconnections shall be made in accordance with the policies established by the Executive Branch and the provisions of this law.
Article l0. (COMPANY FOREIGN). In order to carry out activities of the Electrical Industry, foreign companies must form subsidiaries, by means of the constitution in Bolivia of an anonymous company, in accordance with the provisions of the Commercial Code.
the application of this Article branches of existing foreign companies that are holders of a concession granted by the National Directorate of Electricity prior to the enactment of this law.
TITLE II INSTITUTIONAL ORGANIZATION
CHAPTER I OF THE MINISTRY AND THE SECRETARIAT
Article 11. (FROM THE MINISTRY AND THE SECRETARIAT). In relation to the electricity industry, the Ministry and the Secretariat will exercise the functions established in Law No. 1493 (Law of Ministries of the Executive Branch) of 17 September 1993 and its regulatory provisions. The Secretariat, through the Ministry, will propose regulations of a general nature, for approval by the Executive Branch, and which will be applied by the Superintendence of Electricity. The Secretariat will draw up the Reference Plan for the National Interconnected System and the Indicative Plans for the Isolated Systems.
CHAPTER II OF THE SUPERINTENDENCE OF ELECTRICITY
Article 12. (FUNTIONS AND ATTRIBUTIONS). The Superintendence of Electricity is the body with national jurisdiction that meets the function of Regulation of the activities of the Electrical Industry. The highest executive authority of this body is the Superintendent of Electricity, whose form of designation is established in Law No. 1600 (Law of the System of Sectoral Regulation) dated October 28, 1994.
In addition to the general privileges established in that law, the Superintendent of Electricity shall have the following specific powers subject to the provisions of this law and its regulations:
Protecting the rights of the consumers;
Ensure that the activities of the Electrical Industry comply with the antitrust and consumer protection provisions, as laid down in Law No. 1600 (Law of the System of Sectoral Regulation) dated 28.October 1994, and Title III of this Law, and take the necessary actions to correct any Failure to comply;
Grant and amend concessions, Licenses and Licenses;
Declare and dispose of Concessions Expiration and Revocation Of Licenses;
Intervening Electrical Enterprises, Whatever its form of social constitution, and appoint interventors;
Velar for the fulfilment of the obligations and rights of the Holders;
Impose the necessary Easements for the exercise of the Electrical Industry;
Apply the procedures for the calculation of prices and tariffs for the activities of Generation, Transmission and Distribution;
Approve and control, where applicable, the maximum prices and rates applicable to the activities of the Electrical Industry and publish them in national media;
Approve international interconnections, exports and imports of electricity, according to a regulation;
Monitor the operation of the National Freight Dispatch Committee, established in this law, of the procedures used and the results obtained;
Apply the established penalties;
Requiring individual or collective persons, who carry out any activity of the Electrical Industry, information, data and others that it deems necessary for the performance of its functions, and to publish statistics on the activities of the Electrical Industry; in addition to these, the Superintendent Electricity will have the following attributions:
Fulfilling and enforcing this law and its regulations, ensuring the correct application of the principles, objectives and policies that are part of it, as well as the provisions related legal;
n) Represent the Superintendence of Electricity;
Manage the Superintendence of Electricity, designate and remove the executive, technical and support staff of the Superintendency of Electricity, according to a regulation approved by the General Superintendent of the System of Sectoral Regulation;
Propose to the General Superintendent of the Sectoral Regulation System the salary and human resources policies of the Superintendence of Electricity;
Elaborate the project of budget of the Superintendency of Electricity and propose it to the General Superintendent of the System of Sector Regulation;
To inform the competent authorities of the infringements relating to the protection and conservation of the environment, which I will detect in the development of the activities of the Electrical Industry;
Keep the General Superintendent of the System of Sectoral Regulation regularly informed about its regulatory activities; and,
The others established in this law and those necessary for the proper compliance of their responsibilities.
Article 13. (REGISTER). The Superintendence of Electricity will maintain a public record in which they will be entered:
The contracts for the export and import of electricity;
Contracts with Non-Regulated Consumers and special contracts;
The supply contracts, described in this law;
Contracts entered between Generators;
Concessions, Licenses, and Licenses;
Other activities that do not require Concession or License; and,
Other acts that require registration, in accordance with the present law and its regulations. Article 14. (FINANCIAL). The Power Companies will pay a regulatory fee, which will not be
higher than one percent (1%) of their sales revenue before indirect taxes, to cover the operating costs of the Electricity Superintendence and of the aliquot part corresponding to the General Superintendence of the Sectoral Regulation System.
TITLE III ELECTRIC SECTOR STRUCTURE
CHAPTER I NATIONAL INTERCONNECTED SYSTEM
Article 15. (DIVISION AND PROPERTY LIMITATIONS). The Power Companies in the National Interconnected System must be disaggregated in companies of Generation, Transmission and Distribution and dedicated to one of these activities. Participation in the ownership of the same will be subject to the following limitations:
Companies of Generation or Distribution, their Related Companies and Shareholders or Linked Partners may not be holders of the owner's right in no percentage of the share capital of any transmission undertaking, nor exercise control of the management of the company. Similarly, Transmission companies, their Related Companies and Shareholders or Linked Partners may not be entitled to the owner of the owner's right in any percentage of the share capital of any Generation or Distribution company, or exercise control over the administration of the same.
Generation companies, their related companies and their shareholders or related partners may not be the owner of the owner's right in any percentage of the social capital of any Distribution company, nor exercise control of the administration of the same. Similarly, the Distribution companies, their related companies and their Shareholders or Linked Partners may not be the owners of the owner's right in any percentage of the social capital of any company of Generation, nor exercise control. the management of the same.
Generation companies, any of their Shareholders or Linked Partners or Related Companies, directly or indirectly, may not be holders of the equivalent owner's right of more than thirty and five percent (35%) of the installed capacity of the National Interconnected System, in form individual or joint. The installed capacity for export is excluded from this limitation. The Superintendence of Electricity may authorize that this limit be temporarily exceeded when, due to the magnitude of new projects, the participation of some generating company reaches a value higher than that established.
Exceptionally, and according to regulation, Distribution companies may be the direct owner of Generation facilities, which uses and uses renewable natural resources, provided that this capacity does not exceed 15%. (15%) of the total of its maximum demand.
This Generation must be operated according to the provisions by Article l6º (b) of this Law. For the purposes of this Article, Electrical Enterprises shall record in the Superintendence of
Electricity to its shareholders or shareholders, whose share in the share capital of the company exceeds five percent (5%) of the total, according to regulation.
Article 16. (GENERATION OPERATION). The Generator in the National Interconnected System will operate under the following conditions:
You must be connected to the Troncal System of Interconnection, using the respective transmission lines, assuming the corresponding costs.
All Generation plants operating in the National Interconnected System will be required to comply with the provisions of the National Freight Dispatch Committee. To this end, the Generators will deliver their entire production for the Cargo Office, declaring the availability of the power stations.
It will be able to sign contracts for the sale of electricity with other Generators, Distributors or Non-Regulated Consumers, subject to this law.
Article 17. (OPERATION OF THE TRANSMISSION). Transmission in the National Interconnected System will operate under open access mode. This modality allows any individual or collective person, who performs activities of the Non-Regulated Electrical or Consumer Industry, to use the facilities of the Transmission companies for the transport of electricity from one point to another, subject to the corresponding payment. This payment will be approved by the Electricity Superintendence according to regulation.
For the purpose of this operation, it is presumed that there is always available capacity, while the Transmitter does not prove otherwise. The expansion of the transmission facilities is the responsibility of the users who cause it, and must agree to the modality of their financing or payment with the Transmitter, after approval of the Superintendence of Electricity, according to a regulation.
The Transmitter will not be able to purchase electricity to sell to third parties. Article 18. (NATIONAL LOAD DISPATCH COMMITTEE). Create the National Dispatch Committee
of Cargo, responsible for the coordination of the Generation, Transmission and Dispatch of Cargo at minimum cost in the National Interconnected System. The functions and organization of this Committee, in all matters not provided for in this law, shall be established in a regulation.
The Committee shall be composed of a representative of the companies of Generation, Transmission and Distribution, respectively, a representative of the Non-Regulated Consumers and the representative of the Superintendence of Electricity, under the conditions that will establish the regulation.
The facilities for the Cargo Dispatch will be the property of the Transmission company that owns the Interconnection Troncal System, the same that will establish a Independent accounting system for the activities of the Cargo Office.
The Superintendency of Electricity may recommend to the Executive Branch the creation of an independent company, constituted in a public limited company, in conformity with the provisions of the Code of Commerce, which owns the facilities for the Cargo Dispatch, in which the Electrical and Non-Regulated Companies that use these facilities will participate.
The cost of operating the National Freight Dispatch Committee will be covered by all users of the Cargo according to its participation in the use, in the form that will be established in regulation.
Article 19. (FUNCTIONS OF THE NATIONAL CARGO DISPATCH COMMITTEE). The National Freight Dispatch Committee will have the following functions:
Plan the integrated operation of the National Interconnected System, with the objective of meeting the demand through a safe, reliable and minimal cost operation;
Perform Real-time Load Dispatch at minimum cost;
Determine the effective power of the National Interconnected System generating units;
Calculate the prices of the National Interconnected System Node, in accordance with the provisions of this law and submit them to the Electricity Superintendence for approval;
Set the rated balance of the electricity resulting from the integrated operation, according to a regulation;
Deliver to the Superintendence of Electricity the technical information, mathematical models, computer programs and any other information required by the Superintendence; and,
Other established in regulations, that are necessary for fulfill the purpose for which the National Load Dispatch Committee is created.
CHAPTER II ISOLATED SYSTEMS
Article 20. (VERTICAL INTEGRATION). In the Isolated Systems, the activities of Generation, Transmission and Distribution may be vertically integrated. Load Dispatch on the Isolated Systems will be set to regulation.
Article 21. (ADEQUACY). The Electrical Companies in the Isolated Systems, which connect to the National Interconnected System, must adapt their organization, operation and structure to the provisions of this law, within a period not greater than one (1) year, from the start date of your activities on the National Interconnected System.
TITLE IV CONCESSIONS, LICENSES, and EASEMENTS
CHAPTER I OF CONCESSIONS and LICENTS
Article 22. (GRANT OF SERVICE Public service concession the following activities of the Industry Electrical:
Distribution; and,
Those that are developed in integrated form in Isolated Systems. Article 23. (LICENSE). License the following activities of the Electrical Industry:
Generation, when the power is higher than the minimums set in regulation;
Transmission; and,
Transmission associated with the Generation. Article 24. (PROVISIONAL LICENSE). Provisional License is required for studies for generation plants that use and take advantage of natural resources and studies for transmission facilities. Item 25. (ACTIVITIES THAT DO NOT REQUIRE A GRANT OR LICENSE). The following activities of the Electrical Industry do not require Concession or License:
The production of electricity for the supply to third parties or the exclusive use of the producer, which is carried out below the established limits in regulation;
The distribution of electricity by a self-producer and which does not constitute a public service; and,
Those that are made in integrated form in Isolated Systems, whose dimensions are below the limits set in regulation.
The activities included in points (a), (b) and (c) of this Article may be Article 26.
Article 26.
Article 26.
Article 26.
Article 26.
Article 26. The Superintendence of Electricity will grant Public Service Concessions, Licenses, and Licenses to the following procedures: 1. By request of interested party:
The Public Service Concessions, Licenses and Licenses, when in the period of thirty (30) days of the last publication referred to in Article 27º of the present law, other requests for the same object are not received, or the preferential right of Provisional License exists;
Licenses that have prior Provisional License; and,
Licenses for export and import of electricity. 2. By public tender:
The Provisional Licenses, when in the period of thirty (30) days of the last publication referred to in Article 27º of this Law, other applications for the same object are received;
Licenses, when in the period of thirty (30) days of the last publication referred to in Article 27 of this Law, other applications for the same object are received, provided that it has not been granted Provisional License, in which case the Holder has a preference to obtain the License;
Public service concessions, licenses and licenses for projects identified and studied by the State; and,
Public service concessions at the expiration of the deadline. After the formalities of law, the Superintendence of Electricity will proceed to issue the resolution
administrative that grants the respective concession or license. Within a maximum period of sixty (60) calendar days, from the date of issue of the administrative resolution, the corresponding contract will be signed, which must be protocolized to the Notary of Government.
Article 27. (ADVERTISEMENT and OPPOSITION). The Superintendency of Electricity will publish an extract of the applications and tenders for Public Service Concessions, Licenses and Licenses in the national circulation daily for three consecutive days. Within thirty (30) days from the date of the last publication, the owners and other persons who may be affected by the request for Concession or License or the planned works may formulate before the Superintendence of Electricity the objections and observations that they judge convenient, the same ones that will be processed and resolved by the Superintendence of Electricity, according to regulation. In the same period, other interested parties in the Public Service Concessions, Licenses and Licenses, which are the subject of the publication, may submit the corresponding applications, in which case the Superintendence of Electricity will proceed Article 26º numeral 2 of this law, provided that there is no Provisional License Holder with preferential right.
Other procedures for the granting of Public Service Concessions, Licences and licences for contracts, invitations to tender and special cases of concurrency and The opposition will be established in regulation and will be carried out with the widest publicity and accessibility of information.
Article 28. (REQUIREMENTS). Requests for Public Service Concession and License will be submitted to the Electricity Superintendence, with the following data and minimum requirements:
Identification of the Holder;
Description of the use and use of natural resources, where applicable;
Project basic and descriptive memory;
Work execution Cronogram;
Project Budget;
Specifying required Weasements;
Delimitation of the Public Service Concession Zone and the Area of Use and Use of Natural resources for the License, where applicable;
Environmental Impact Study; and,
Guarantees, in the form that the regulations establish. Provisional License applications shall comply, in addition to those provided for in points (a), (f), (g) and (i)
as
:Preliminary description of the use and use of natural resources, where appropriate;
Description and Study schedule to run; and,
Study Budget. Article 29. (CONCESSION AND LICENSE CONTRACTS). The Public Service and License Concession contracts shall be entered into between the Superintendent of Electricity and the respective Holder, and shall contain the following:
General of law of the petitioner and legal documentation evidencing its organization and operation according to law, dealing with collective persons formed according to the Code of Commerce;
The object and time;
The technical characteristics and location of the existing works and installations projected, Initial easements required and the limits of the concession area. In the Concession of Distribution the limits will comprise a minimum strip of one hundred meters surrounding all the existing lines of the company of Distribution. The extension of the Distribution Concession Zone will be regularised every two years, according to regulation;
The rights and obligations of the Holder;
The program of investments and execution schedule, including dates of initiation and completion of works and facilities;
The contract compliance guarantees established in the regulations;
Causals and effects of the revocation or revocation declaratory;
The conditions under which the contract can be modified;
The penalties for non-compliance;
The technical and quality conditions of the supply;
force majeure cases;
The stipulations regarding the protection and conservation of the media environment; and,
Other stipulations that are necessary or legally required for due compliance with this law, its regulations and the contract.
Article 30. (OBLIGATIONS OF THE HOLDER).-The Holder has the (a) 1. In the Case of Generation.
Run the works and installations and put them into operation within the contractually established time frames;
Keep and maintain the works and facilities under appropriate conditions for operation efficient;
Ensuring the quality and safety of the service, in accordance with the contractual conditions, this law and its regulations;
Present the technical and economic information to the Superintendence of Electricity, to the Committee National of the Office of Charge, and other competent authorities, in the form and time-limits fixed according to regulation;
Facilitating the Superintendence of Electricity with the technical inspections of its facilities and those relating to its management, accounting and financial systems;
Meeting the legal rules on conservation and environmental protection;
Acatar and comply with the instructions of the National Freight Dispatch Committee, in the case of Holders operating in the National Interconnected System; and,
Fulfilling the other obligations set out in the present law, its regulations and the respective contract. 2. In the case of Transmission.
In addition to the obligations set out in numeral 1 of this Article, the Holder is obliged to permit the use of its Transmission facilities to Electrical Enterprises, Non-Regulated Consumers and self-producers who request it, subject to the corresponding payment.
3. In the case of Distribution. In addition to the obligations set out in numeral 1 of this Article, the Holder is obliged to:
Give service to any consumer who requests it, within its concession zone;
Meet all electricity demand in the area of its Concession;
Having existing contracts with Generation companies, according to established in this law; and,
Allow the use of its facilities to Non-Regulated Consumers, Generators and Autoproducers who are located within their area of Concession or other consumers who are connected to it, subject to the corresponding payment.
4. In the case of Isolated Systems. The holder shall comply with the obligations laid down in numerals 1, 2 and 3 of this Article, where appropriate. The authorized staff of the Superintendence of Electricity will have free access to the Electric Companies,
facilities for the Cargo Dispatch and any installation or infrastructure for the exercise of the Electrical Industry, with the the purpose of fulfilling the functions entrusted to it by this law and its regulations, without interfering with the normal development of the activities of the Electrical Enterprises. All Electrical Enterprises, whatever their form of constitution, are prohibited from requiring that whoever requests the supply of electricity, assume the status of the company's partner.
Article 31. (SUPPLY CONTRACTS ELECTRICITY). In order to fulfil the obligation to satisfy all the electricity demand in the area of their concession, the Distributors will sign electricity supply contracts with the Generators, with tariffs agreed between the parties, within the framework of the the present law. These contracts must cover at least 80% (80%) of the maximum claim under their responsibility for a minimum period of three years. The percentage of compulsory procurement and the minimum period may be modified by the Superintendence of Electricity, considering the evolution and functioning of the market.
The supply contracts between Generators and Distributors must be performed according to procedures approved by the Superintendence of Electricity, subject to the corresponding regulations.
Article 32. (EXPIRATION AND TRANSFER). At the end of the period of the public service concession, the Superintendency of Electricity shall conduct a public tender in order to grant a new Concession and to transfer to the new Holder all the assets affected to it, including, but not limited to facilities, equipment, works, rights and information. The incumbent has an obligation to cooperate with the Superintendency of Electricity during the entire bidding and transfer process and will be able to participate in such a tender.
The amount of the payment to be received by the goods affected by the Concession will be the book value or the tender value, whichever is lower; in both cases, the costs incurred in the tendering process are deducted.
Any major difference that must not be paid to the holder of the contract, will support electrification projects in the rural area.
Article 33. (CAUSALES DE REVOCATION AND REVOCATION DECLARATORY). The following cases shall be the cause of the declaration of revocation of Concessions and the revocation of Licenses:
When the Holder does not initiate or complete the works or installations, or make the required investments within the time limits established in the respective contract, except for cases of force majeure established in the contract, duly checked;
When the Holder modifies the object for which the respective Concession or License was granted, without prior approval of the Electricity Superintendence;
When the Holder does not meet the obligations contractual arrangements established in accordance with this law;
When the Holder does not correct his or her conduct after receiving a notification from the Superintendency of Electricity on the repeated non-compliance with other contractual or legal provisions, within the time limits specified in the contract;
When the Holder of a Transmission License or a Distribution Public Service Concession, does not allow open access for the use of its facilities to a Generator, Non-Regulated Consumer, or Self-Producer; and,
When for private electrical undertakings, from the date on which they are signed against them bankruptcy declarative, under law.
Article 34. (DECLARATORY OF EXPIRATION OR REVOCATION). For any of the causes mentioned in Article 33 of this Law, the Superintendence of Electricity, in public procedure and by duly substantiated administrative resolution, shall declare the revocation or revocation, and of being The intervention shall be provided for as long as the tender, award and possession of a new Holder is made in order to ensure the continuity of the service.
When all the respective instances have been executed, subject to established in Law No. 1600 (Law of the System of Sectoral Regulation) dated October 28 In 1994, the revocation or revocation shall determine the immediate cessation of the rights of the Holder, established by law and the respective contract. The Superintendence of Electricity will execute the respective guarantees.
The installations, equipment, works and rights of the holder will be transferred to the new Holder according to the value of books or the tender, the one that is minor; deduced in both cases the expenses incurred in the process, fines and unpaid penalties.
Any major difference that must not be paid to the ceasing holder, will be used to finance electrification projects in the rural area.
creditors of the Holder of the Concession effectively declared on expiry or of the License effectively revoked, they may not object, for any reason, to the tender before noted.
Article 35. (PREVENTIVE INTERVENTION). When the normal provision of the service is put at risk, the Superintendence of Electricity, by means of public procedure and duly substantiated administrative decision, may decide the preventive intervention of the Holder for a period not exceeding greater than one (1) year, which may be extended once, with the approval of the General Superintendence of the Sectoral Regulation System.
At the end of this period, the Superintendence of Electricity, based on the report presented by the Financial controller designated for that purpose shall determine the declaration of revocation or revoking or, if applicable, will subscribe with the Holder a duly guaranteed agreement, in which the measures that the Holder will have to adopt in order to continue exercising the ownership will be established. Where a judicial or extrajudicial action, initiated by creditors of a Holder, puts at risk the normal provision of the service, they shall request the Superintendence of Electricity to take preventive action, according to the first paragraph of the Article and its regulation, not being able to embark the goods affected to the Concession, License or Provisional License.
CHAPTER II OF THE USE OF PUBLIC GOODS AND EASEMENTS
Article 36. (USE OF BIRES PUBLIC). The Holder has the right of use, free of charge, of the surface, subsoil and airspace of public domain that is required exclusively for the object of the Concession or License.
Article 37. (DECLARATORY OF AREA PROTECTED). In application of the provisions of Law No. 1333 (Law of the Environment) dated June 15, 1992, the Holder of a Generation License has the right to request the declaration of protected area to the geographical area of the water basin above hydraulic works for the use and use of the water resources inherent in the respective License. The Holder will have an obligation to administer and preserve the protected area at its cost.
In addition, the Holder may apply for the right of use, free of charge, for the public domain property and the imposition of Serversas on private property of public entities or autonomous entities in the protected area.
Article 38. (OF THE EASEMENTS). At the request of the Holder, the Superintendency of Electricity may impose Serviements for the exercise of the Electrical Industry, on property of private property or that are of the patrimonial domain of any public or autonomous entity. The exercise of the Easements will be done causing the least damage to those imposed on them.
Article 39. (EASEMENTS CLASSES). The easements for the exercise of the Electrical Industry are:
Aqueduct, reservoir and hydraulic works for hydroelectric plants;
Pipeline, cooling aqueduct and facilities for thermoelectric plants and geothermal;
Power line, for Transmission, Distribution, or Communication lines, be these overhead or underground;
Substation, for air or underground substations;
Step, for construction and use of trails, trots, paths or ferroways;
Step, for custody, conservation and repair of works and installations;
Temporary occupancy, intended for the storage of goods needed to execute works and,
For the transport of electricity, on transmission facilities belonging to different entities of a Transmitter.
Article 40. (RIGHTS DERIVED FROM EASEMENTS). Depending on the class of Serversume, its imposition gives the Holder the right to use the land that is necessary for the works, reservoirs, landfills, sedimentary, water accumulation ponds, pressure chambers, pipes, pipelines, hydroelectric, geothermal and thermoelectric power stations with their dependencies, access roads and, in general, all the works required for hydroelectric, geothermal, thermoelectric and wind installations, the right to discharge waters and the use of materials from the surrounding area. The Power Line and substation Enserfdom confers on the Holder the right to lay drivers by means of poles, towers or underground ducts and to install aerial or underground substations, manoeuvres or transformation, related to the respective power line. This Easement does not prevent the owner of the servant from being able to lock and build or plant trees, provided that he respects the minimum heights and safety areas established by the rules of the Superintendence of Electricity.
Easements will be imposed by the Superintendence of Electricity, taking into account the rights of the owners of the servants of the servants.
The easements may also be established by free agreement between parties. Article 41. (RIGHTS OF USE AND EASEMENTS IN URBAN AREAS). In urban areas, the
Holder will have the following rights of use free of charge:
Install and tender air or underground lines in public domain and heritage assets of any public or autonomous entity;
Install on such goods, air or underground substations; and,
Go through the works and lines of public domain goods or goods affected by public service
In urban areas, the imposition of Serversas will respect the cultural heritage of the nation and the regulations of the respective municipal jurisdictions in the area of urban planning. Article 42. (COMPENSATION). Except as provided for in Article 43º of this Law, where the imposition of the Serviements occasioned or may cause prejudice to the owner of the servant, or is deprived of the right of ownership of all or part of the property, the payment shall be made.
When the Serversume has to impose itself on private property, the compensation amount will be established in direct negotiation between the Holder and the owner of the property. In the event of no agreement, the compensation amount will be fixed by the Superintendency of Electricity, according to regulation.
Article 43. (COMPENSATORY PAYMENT). In the case of a power line in the rural area, the simple passage of an electric line does not entitle the payment of compensation. The owner of the servant will have the right to receive compensatory payments when, in order to establish the Servius, damages for the demolition of trees, buildings, works or installations have been caused.
Article 44. (PROCESSING OF SERVITUDE). The holder who requires the imposition of one or more Serviements, shall submit the respective application to the Superintendence of Electricity, which shall have the notification of the owners of the servant, in accordance with the provisions legal force. Procedures for the imposition of Serviements and for the recognition of compensation and compensation payments shall be established by regulation.
TITLE V OF PRICES AND TARIFFS
CHAPTER I GENERAL PROVISIONS
Article 45. (REGULATED PRICES). They will be subject to Regulation: 1. National interconnected system.
The prices of power and power transfers between Generators and between Generators and Distributors, when transfers are not covered by contracts of supply. Such transfers will be valued at the marginal cost of this system as determined by the National Freight Dispatch Committee;
Maximum prices for the use of Transmission and Distribution facilities;
supplies to the Distribution companies in the delivery nodes;
The maximum prices of the supplies to the regulated consumers. 2. Isolated systems. All electricity supply prices. The prices of the supplies referred to in this Article shall be public knowledge. At a written request from interested parties, the corresponding studies may be displayed.
Article 46. (PRICES AND RATES IN ISOLATED SYSTEMS). The prices and rates in the Isolated Systems will be established according to the criteria defined for the National Interconnected System, when these are applicable. Otherwise, the Electricity Superintendence will approve prices and tariffs that cover the average costs of the supply, taking into account efficiency criteria.
Article 47. (ACCOUNTING AND AUDITING). The Superintendency of Electricity will establish a uniform system of compulsory use accounts for all companies in the sector, following universally accepted accounting principles for the Electrical Industry.
External audit that are contracted by the Electrical Companies will have to be carried out by companies prequalified by the Superintendence of Electricity. The annual audit report, which shall be submitted by those undertakings, shall include, inter alia, the following aspects: compliance with this law, the contract of Concession or Licensing, the quality of supply and the efficiency indicators; and effectiveness set by
the Superintendence of Electricity. The Power Companies that have Concession or License on the National Interconnected System and on Systems
Isolated, will have separate accounting systems. The direct proprietary distribution companies of Generation facilities, in accordance with the
of Article 15 (d)
this Law, shall have a separate accounting system for the activity of Generation. Article 48. (UPDATE TASA). The rate of update to be used in the application of this lawwill be ten percent (10%) year-on-year, in real terms. This fee may only be amended by the Ministry, by duly substantiated administrative decision. The new update rate set by the Ministry may not differ by more than two (2) percentage points from the current rate.
CHAPTER II GENERATOR PRICES TO DISTRIBUTOR
ARTICLE 49. (NODE PRICES). The prices of the Node for the supply to the distribution companies presented by the National Committee of the Cargo Office, for the points of the Troncal System of Interconnection in which they are carried out, transfers of electricity to the Distributors will be approved semi-annually by the Superintendency of Electricity.
The calculation of the Node prices will be carried out on the basis of the provisions of this law and its regulations, as follows:
demand for the next 48 months and will determine the Generation and Transmission park that can enter into operation in that period. Such a park will comprise existing facilities, those under construction and those contemplated in the Referencial Plan.
The optimal operation program that minimises the cost of operation and rationing for the period under study.
It will calculate the expected values of the marginal costs of the system's short term energy, for the time blocks established by the Superintendence of Electricity. These values correspond to the minimum cost operation program.
Will terminate the basic energy price for each time block, such as the weighted average of the marginal costs previously calculated by the projected demand values, updated with the update rate stipulated in this law.
Will end the basic price of peak power, calculating the investment annuity and the annual fixed costs of operation, maintenance and administration corresponding to the most economical generating unit intended to supply additional power during the maximum annual demand hours of the system. This value will be increased by a percentage that results from considering the system's theoretical unavailability. The calculation of. the annuity shall be effected by applying the update rate stipulated in this law.
Calculates a power loss factor and power loss factors in Transmission for each of the nodes of the Troncal System Interconnection. These factors will be equal to one (1) in the Nodos in which basic prices are set. Power and power loss factors shall be calculated by considering the marginal losses of Power and Power Transmission, respectively, for an Economically Adapted System.
Will stop the price of peak power on each Node, multiplying the basic price of the peak power by the respective power loss factor. In the Nodos in which it is relevant, the respective Transmission Toll will be added to this product.
The power price in each Node will be stopped for each block, multiplying the basic energy price for each block.
The
node prices will be reset monthly, applying the respective indexing formulas. Due to the period of validity of the Node prices, and as long as they are not approved for the following period, these and their respective indexing formulas will continue in force. The procedure for applying the provisions of this article will be determined by regulation.CHAPTER III MAXIMUM TRANSMISSION PRICES
Article 50. (MAXIMUM TRANSMISSION PRICES). The maximum transmission price paid by the Generators connected to the Troncal System of Interconnection, must cover the total cost of Transmission, which comprises the annuity of the investment and the costs of operation, maintenance and administration of an Economically Adapted System of Transmission.
The maximum prices to be paid for the use of transformation and transmission facilities, which do not belong to the Troncal System of Interconnection, comprise the annuity of the investment plus the costs of operation, maintenance and administration and loss of transmission corresponding to typical Economically Adapted Systems facilities.
The Electricity Superintendence will approve the maximum transmission prices, the respective monthly indexing formulas, and determine the conditions of use of the transmission facilities.
Due to the period of validity of the maximum transmission prices, and as long as they are not approved for the following period, these and their respective indexation formulas will continue in effect.
The procedure for applying the This article shall be determined by regulation. CHAPTER IV
MAXIMUM DISTRIBUTION PRICES Article 51. (MAXIMUM DISTRIBUTION PRICES). The maximum prices for the electricity supply of the distribution companies to their regulated consumers will contain the base rates and the indexation formulas.
1. The base rates will be calculated taking into account the following aspects:
The cost of electricity purchases, operating expenses, maintenance and administration, interest, fees and taxes that are taxed by law Concession, annual instalments of depreciation of tangible assets, amortization of intangible assets and the profit resulting from the application of the rate of return on equity established in this law. The cost of the electricity purchases shall be valued at most at the respective Node price, where applicable, the prices referred to in the second paragraph of Article 50 of this Law shall be included; costs shall not be included of the Superintendence of Electricity, be excessive, do not reflect conditions of efficiency or do not correspond to the exercise of the Concession;
The forecasts of sales of electricity to its consumers; and,
the concept of the sale and transport of electricity, the use and the preservation of service elements; and remuneration that, by any other concept, obtains the company from the goods affected by the Concession.
2. Monthly indexing formulas will be composed of:
A first component that reflects the adjustment for changes in company costs, established based on variations in price indices, minus the rate of increase in efficiency that will be determined by the Electricity Superintendence; and,
A second component that transfers the variations in electricity purchase prices and the variations in rates and taxes that are taxed by law to the Concession activity.
For periods of Four years, the Superintendency of Electricity will approve the maximum prices of electricity supply for the Regulated Consumers of each distribution company. The rates and their indexing formulas will be valid for this period. Once the four-year period has expired, and as long as the rates are not approved for the following period, these and their respective indexing formulas will continue in effect.
The procedure for applying the This article shall be determined by regulation. Item 52. (EXTRAORDINARY BASE RATE REVIEW). Where there are significant variations
in respect of the electricity sales forecasts used in the last approval of the base tariffs, the Superintendence of Electricity, of its own motion, or at the request of the Holder, may carry out a extraordinary revision of base rates.
Article 53. (TARIFF STUDIES). The approval and revision of tariffs will be carried out on the basis of studies that will be commissioned by the Holder to specialized consulting companies, prequalified by the Superintendence of Electricity, that will prepare the terms of reference and will be
Superintendency of Electricity shall approve or reject the studies carried out by the consultants, by means of a duly substantiated administrative decision, making the observations it considers
Article 54. (RETURN RATE AND FINANCIAL COST). The rate of return on the equity affected to the Concession used in determining the utility for the calculation of the base rate, will be the arithmetic average of the annual return rates on the assets of the group of companies listed on the New York Stock Exchange and included in the Dow Jones index of utilities over the last three years.
The Superintendency of Electricity will regulate the financial costs to be recognized as part of the costs. Article 55.
(TARIFF STRUCTURES. The Superintendence of Electricity will approve, for each distribution company, tariff structures defined according to the technical characteristics of the supply and the consumption of electricity.
TITLE VI VIOLATIONS AND SANCTIONS
Article 56. (HEADLINE AND THIRD PARTY VIOLATIONS). The Superintendence of Electricity will impose sanctions on the Holders and/or third parties for the commission of violations of the provisions of Law No. 1600 (Law of the System of Sectoral Regulation) dated October 28, 1994, this law and its regulations. In addition to the declaration of revocation of the Concessions, the revocation of the Licenses and the intervention provided for in this Law, the infractions committed by Holders, will be sanctioned with fines according to the seriousness of the fault, in
violations committed by third parties, which are not Holders, will be sanctioned by the Superintendence of Electricity with fines equivalent to the amount of 500 to 100,000. KWh, multiplied by the average sales rate of the place corresponding to the last quarter prior to the infringement, according to its seriousness and subject to the provisions of the regulations and without prejudice to damages caused.
Article 57. (CONSUMER INFRINGEMENTS). Without prejudice to the criminal penalties provided for by the Criminal Code and the right of the Holder to recover any arbitrary, non-metered or clandestine consumption, the Holder shall sanction the infringements of the consumer in the following cases:
Arbitrary connection;
Altering of measurement instruments;
Clandestine consumption; and,
Negate access to the building for inspections of the authorized personnel of the Holder. The penalties imposed by the Holder shall be equivalent to the amount of 50 to 100,000 KWh, multiplied by the average rate of the place corresponding to the last quarter before the infringement, according to its severity, subject to the provisions of the regulations.
Article 58. (DEPOSIT OF THE FINES). The amount of the fines collected by the Superintendency of Electricity or the Holders will be deposited in a bank account of the Superintendence of Electricity, destined to the financing of electrification projects in the rural area.
Article 59. (SUPPLY CUT). In the case of final consumers, the failure to pay two monthly invoices will entitle the Holder to proceed to the service court, without the need for any prior procedure or procedure.
For the case of non-payment between Electrical Companies, the respective contractual stipulations will apply.
Article 60. (EXECUTIVE ACTION). The debts resulting from the purchase and sale of electricity in block, the use of the facilities of the Transmission and Distribution companies, and the supply to Regulated or Non-Regulated Consumers, constitute liquid obligations and payable; in which case, the unpaid invoice shall have the quality of the business title and record of debt to initiate executive action after 30 (30) days of its notification with the invoice. During this period, the persons concerned may lodge a complaint in error, in which case and, if there is no agreement between the parties, the divergence shall be submitted to the Superintendence of Electricity, without any subsequent appeal. The Holder may sue the default interest payment that is legally applicable.
TITLE VII FINAL PROVISIONS
Article 61. (ELECTRIFICATION IN SMALLER POPULATIONS AND IN THE RURAL AREA). The State has the responsibility to develop electrification in smaller towns and rural areas, which cannot be exclusively attended by private initiative. To fulfill this purpose, the Executive Branch, through the National Regional Development Fund, will allocate internal and external financing resources for electrification projects in smaller towns and rural areas. propose policies and strategies that allow the use of other energy sources, for the supply of energy to smaller populations and the rural area, within the framework of the comprehensive development policies of this sector.
Article 62. (FUNDING FOR ELECTRIFICATION IN SMALLER POPULATIONS AND RURAL AREAS). The National Regional Development Fund will be responsible for the evaluation and approval of electrification projects in smaller towns and rural areas presented by the Territorial Organizations of the Base, through the Municipalities, or both, on their own initiative. These projects may be co-financed by the municipalities and other public and private sector entities. If the projects submitted by these entities do not demonstrate adequate levels of profitability, the Fund shall allocate concessional resources or grants, where these are available, in order to enable the projects to be implemented.
ARTICLE 63. (REGULATION OF ELECTRIFICATION IN SMALLER POPULATIONS AND RURAL AREAS). The Superintendence of Electricity will regulate the activities of electrification in smaller populations and in the rural area.
Article 64. (INCORPORATION OF ISOLATED SYSTEMS). Exceptionally, the National Regional Development Fund will be able to participate in the financing of projects for the incorporation of isolated systems into the National Interconnected System. In the same way, the National Regional Development Fund will evaluate these projects and, if necessary, will be able to grant concessional credits when these are available.
Article 65. (GRANTING OF NEW CONCESSIONS AND LICICAS). As of the date of enactment of this law, the Superintendence of Electricity will grant concessions, Licenses and Licenses only to anonymous companies formed in accordance with the Commercial Code.
Except for this limitation for granting of concessions, Licenses and Licenses to individual or collective self-producing persons, as well as to cooperatives which, at the date of the enactment of this law, have concessions granted in accordance with the Electricity Code and which request public service concessions and/or Licenses referred to in Article 15 (d) of this Law, complementary in their areas of influence.
Article 66. (OF THE COOPERATIVES).-For the purposes of this law, the conversion of the cooperatives engaged in the activities of the Electrical Industry, in public limited companies that will be governed by the Commercial Code.
To agree this conversion, it will be required of a resolution of the extraordinary assembly of the cooperative, meeting with a statutory quorum, with the simple majority of votes of the members present in the assembly.
If for reasons of number and geographical dispersion of partners it is not possible the constitution of the extraordinary assembly in the first call, the competent authority, ensuring the transparency of the process and the interests of the partners, may provide a second call. In this case, the extraordinary assembly may be validly performed with the number of partners who are present, or alternatively, have a written consultation mechanism to the partners. In both cases, a favorable vote will be required of the majority of the members who attend the assembly or respond to the consultation, respectively. The entire procedure shall be supervised and approved by competent authority.
Once converted into a public limited company, the shareholders may exercise the rights of disposition of their shares, in accordance with the statutes of the company and the
tax purposes, the conversion provided for in this Article shall be deemed to be a reorganization of an undertaking. Article 67. (REGULATIONS). The Executive Branch shall regulate this law. Article 68. (ABROGATIONS AND DEROGATIONS). The Electricity Code approved by
Supreme Decree No. 08438, dated July 31, 1968, is repealed and any other legal provisions contrary to this law shall be repealed, as of the date of entry into force, according to the Article 76º of this law.
TITLE VIII TRANSIENT Provisions
Article 69. (ADEQUACY). Within a period no longer than eighteen (18) months, from the date of enactment of this law, the individual or collective persons engaged in the activities of the Electrical Industry in the National Interconnected System which, at the time the date of enactment of this law, they are vertically integrated, they must take the legal, administrative and other measures necessary to adapt to the new structure established in this law. Within this same period, the Electricity Superintendence and the concession holders will adapt the existing concessions to the provisions of this legal standard.
Article 70. (TEMPORARY LIMITATION TO THE GRANTING OF LICENSES OF GENERATION). In order to optimize the capitalization process of the National Electricity Company S.A. and to ensure the investment required for the supply of electricity, the generation companies that currently operate in the National Interconnected System, and those resulting from the aforementioned capitalization process, will have exclusivity until December 31, 1999 to obtain new Generation Licenses in the National Interconnected System. This limitation may be amended if the Superintendence of Electricity demonstrates, in a substantiated manner, that the projection of the electricity demand will not be adequately met. This limitation does not include the Generation Licenses resulting from the recall, nor those that were requested by autoproducers.
The granting of Generation Licenses for export will be restricted to the companies of Generation that currently operate in the National Interconnected System and those resulting from the capitalization of the National Electricity Company S.A., until December 31, 1998.
During this transition period, the Electricity Superintendency may grant Generation Licenses that, in individual or aggregate terms, do not exceed three percent (3%) and ten percent (10%), respectively, of the installed power on the National Interconnected System.
Article 71. (GRANTING OF CONCESSIONS AND LICENSES). The Superintendence of Electricity is authorized to grant, without the need of the prior procedures established in this law, Concessions and Licenses in favor of the electric utilities that are divided in compliance with the established in the Article 15º of this law and of those that have provisional concessions granted by the National Directorate of Electricity or grant applications submitted in accordance with the Electricity Code and pending before the same Directorate.
Article 72. (ASSIGNMENT OF CONTRACTS TO COMPANIES TO BE CAPITALIZED). The National Company of Electricity S.A. will cede, to the companies resulting from the capitalization process, its contracts of purchase-sale of electricity.
Article 73. (TARIFARIAS PROVISIONS). For a period not greater than seven (7) years from the date of enactment of this law, the Superintendency of Electricity shall define the procedure for the implementation of the tariff provisions applicable to concessions of generation granted prior to the enactment of this legal standard.
Article 74. (TRANSFER OF SHARES). In order to comply with the provisions of article l5 of this law, the transfer of shares in the power distribution companies of the State, companies and entities of the public sector, in favor of individual or collective public or private sector persons.
Article 75. (AUTHORIZATIONS TO NON-REGULATED CONSUMERS). During the first five (5) years of application of this law, consumers who, by virtue of their consumer characteristics, could be constituted in Non-Regulated Consumers within the areas of Concession granted to the distribution companies, must obtain an authorization from the Electricity Superintendence to be able to act as such.
Article 76. (VALIDITY). This law shall enter into force from the date of designation of the General Superintendent of the Sectoral Regulation System and the Superintendent of Electricity. In the meantime the provisions of the Electricity Code will continue to apply.
Together with this law, the rules contained in Title V of Law No 1600 (Law of the System of Electricity) will enter into force for the electricity industry. Sectorial Regulation) dated October 28, 1994, except for the exceptions provided for in this Law.
Remit to the Executive Branch for constitutional purposes. Session Room of the National Congress. La Paz, 21 December 1994. H. Juan Carlos Duran Saucedo, PRESIDENT H. SENATE NATIONAL, H. Walter Zuleta Roncal,
SENATOR SECRETARY, H. Yerko Kukoc del Carpio, DEPUTY SECRETARY, H. Javier Campero Paz, PRESIDENT H. CHAMBER OF DEPUTIES, H. Freddy Tejerina Ribera, SENATOR SECRETARY, H. Edith Gutiérrez de Mantilla, DEPUTY SECRETARY
Therefore, it is enacted so that it has and will comply with the law of the Republic. Palace of Government of the city of La Paz, at twenty-one days of the month of December of a thousand nine hundred and ninety years
and four years. FDO. GONZALO SÁNCHEZ DE LOZADA, Constitutional President of the Republic, Carlos Sánchez
Berzain, Minister of the Presidency, Alfonso Revollo Thenier, Minister without Portfolio, Responsible for Capitalization, Jaime Villalobos Sanjines Minister without Portfolio, Responsible for Economic Development.
