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EXTENSION OF THE VALIDITY OF THE OIL-DERIVED FUEL PRICE STABILIZATION MECHANISM SET OUT IN LAW Nº 20.063, WITH THE MODIFICATIONS INDICATED

Original Language Title: PRORROGA LA VIGENCIA DEL MECANISMO DE ESTABILIZACION DE PRECIOS DE COMBUSTIBLES DERIVADOS DEL PETROLEO ESTABLECIDO EN LA LEY Nº 20.063, CON LAS MODIFICACIONES QUE INDICA

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LAW NO. 20.115 EXTENSION OF THE PRICE STABILIZATION MECHANISM FOR PETROLEUM FUELS ESTABLISHED IN LAW NO. 20,063, WITH THE MODIFICATIONS INDICATED Having present that the National Congress has given its approval to the following Bill: Article 1.-Extend the Oil Derived Fuels Price Stabilization Mechanism, provided by Law No. 20.063, 2005, with the following modifications: 1) Substitute, in the first paragraph Article 1 °, "2006" by "2007". 2. Amend Article 2, as follows: (a) In the second indent, the word "determined" and the final paragraph, passing the point (.) shall be followed by the preceding paragraph (.). b) incorporate the following fourth, new point, passing the current fourth, fifth, sixth, seventh, eighth, ninth, and tenth to fifth, sixth, seventh, eighth, ninth, tenth, and tenth, first, respectively: " The refining differential to use in the determination of the intermediate reference price of fuels, which shall correspond to the one that is drawn from the moving average of the average weekly prices of the respective fuels, in the period from "s" weeks to counted from the respective week. The report of the National Energy Commission referred to in the first subparagraph shall indicate the methodology for calculating the average mobile average. ' (c) Reposition the current fourth indent, which has become fifth, by the following: " The value of the parameter "n", "m" or "s" shall be valid for at least four weeks, and may be modified in the respective decree setting the reference prices, after the National Energy Commission has informed it. Notwithstanding the above, the maximum values of 'n' and 's' shall correspond to 52 weeks and the maximum value of 'm' to six months. ' d) Amend the current seventh indent, which has become eighth, in the following terms: (i) "minor". (ii) Replace the term "average weekly" by "average of two weeks", and (iii) Replace the final sentence by the following: " For these purposes a relevant market for each fuel or the average of two relevant markets shall be considered for (e) Amend the current eighth indent, which has become ninth, as follows: (i) Replace the words "the previous week", for "the previous two weeks", the two times it appears. (ii) Replace the expression "first day of the following week" by "next Thursday", the two times it appears. (f) Add the following final points: " Without prejudice to the above, the amount of the credits and/or taxes shall be reported no later than the day before their entry into force. For the purposes of this Article, a week shall be understood to mean the period of 7 consecutive days, the beginning and end of which shall be determined by the respective decree. "(3) The following point shall be inserted at the end of Article 5:" To count from 1 July 2006 and until 30 June 2007, the Fund shall operate with the balance of 30 June 2006. ' (4) Amend Article 6 as follows: (a) In the third subparagraph, the phrase 'plus the projection of the financial revenue in which it should be increased during the same period' and the sentence ' and the Budget Directorate of the Ministry of Finance, in the case of financial income ' and replace the comma (,) which is the basis of a point (.). (b) to replace, in the fifth indent, the phrase "observed in the date and form to be established" by the expression "date and modality to be established", preceded by a comma (,). (5) Amend Article 8 ° as follows: (a) Reposition, in the third indent, the word "July" for "January". (b) The following fourth, fifth and sixth points are incorporated at the end of Article 8: " If the account referred to in the first subparagraph, minus the balance referred to in the preceding subparagraph, is recorded at 30 June 2007, it shall register a balance in favour of ENAP, the undertaking shall have the right to charge that balance as from 1 January 2008 in the form laid down in the supreme decree referred to in the preceding paragraph. The Fiscus may settle the account in full or in part by the capitalization of accumulated profits in the form that is available through the supreme decree issued by the Ministry of Finance and which must also be signed by the Minister of Finance. Mining. If the balance as at 30 June 2007 is in favour of the Fiscus, the Minister of Finance will have the right to find out how to find out the balance. The Budget Directorate shall report on a quarterly basis the net balance of the account referred to in the first subparagraph. ' 6. Articles 9 ° permanent and first, second, third and fourth transitional items. (7) Replace the current sixth transitional article, which has become a second transitional, by the following: " Article 2.-The balance of the special account referred to in Article 5 of this Law, as at 30 June 2006, shall be maintained as Part of the resources of the Copper Income Compensation Fund. The balance of the Fund referred to in Article 1 of this Law shall, at the end of its term of validity, be treated in the same way. ' Article 2.-Introduces the following amendments to Law No 19,764, as amended by Law No 19,935: (a) Replace in the fourth indent of Article 1 °, the expression "of 1 July 2006" by " of the date of expiry established in the Article 1 (1) of Law No 20.063, first indent. ' (b) Replace in the fourth indent of Article 2 °, the expression "of 1 July 2006" by "of the date of expiration laid down in the first paragraph of Article 1 (1) of Law No 20,063". Article 3.-Amendments to Law No 20,063 shall enter into force on 1 July 2006. Transitional Article-The prices, credits and taxes fixed for the week starting on 26 June 2006, shall be maintained until 5 July 2006, with the allocation or payment of the credits or taxes of the imports to the Background. Second transitional article.-As long as the amendments to the Regulation of Law No 20,063 are not made, its current rules will be applicable as far as it is relevant, and the decrees referred to in Article 2 may be applicable. additional regulations which are necessary in accordance with the amendments proposed by this law. '; And because I have had to approve and sanction it; therefore, promulgate and take effect as the Law of the Republic. Santiago, June 29, 2006.-MICHELLE BACHELET, President of the Republic.-Andres Velasco Branes, Minister of Finance.-Karen Poniachik Pollak, Minister of Mining and Energy. What I transcribe to you for your knowledge.-Salute intently to you, Maria Olivia Recart Herrera, Deputy Finance Secretary.