Whereby The Regime Of Public Services Is Established And Dictate Other Provisions

Original Language Title: Por la cual se establece el régimen de los servicios públicos domiciliarios y se dictan otras disposiciones

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Law 142 of 1994
(July 11)
Official Gazette No. 41433 of July 11, 1994 Domestic Public Services

by which the system of public services is established and dictate other provisions. Summary

Term Notes
THE CONGRESS OF COLOMBIA,
DECREES: PRELIMINARY TITLE


CHAPTER I. GENERAL PRINCIPLES
ARTICLE 1o. SCOPE OF THE LAW. This Act applies to public services of water, sewer, toilet, electricity, fuel gas distribution, telephony [fixed] basic switched public and local mobile telephony in rural areas *; the activities performed by persons providing public services dealt with in Article 15 of this Law, and to the complementary activities defined in Chapter II of this Title and the other services under special provisions of this Act.
Notes Effective


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Previous legislation Article 2.
. STATE INTERVENTION IN PUBLIC SERVICES. The State will intervene in public services, under the competition rules in this Law, under the provisions of Articles 334, 336, and 365, 370 of the Constitution, for the following purposes: || | Notes Effective


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2.1. Ensuring the quality of the property subject of public service and its disposal to ensure the improvement of the quality of life of users.

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2.2. permanent expansion of coverage through systems that compensate for insufficient payment capacity of users.

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2.3. priority basic needs unmet drinking water and basic sanitation.

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2.4. continuous and uninterrupted provision, without exception, unless there are reasons of force majeure or technical or economic case so require.

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2.5. efficient delivery.

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2.6. Freedom of competition and no abuse of the dominant position. Effective Jurisprudence



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2.7. Obtaining economies of scale testable.

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2.8. Mechanisms to ensure users access to services and participation in the management and control of service provision.

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2.9. Establish a proportional rate system for low-income sectors in accordance with the precepts of equity and solidarity. Effective Jurisprudence



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ARTICLE 3. INSTRUMENTS OF STATE INTERVENTION. They are instruments for state intervention in public services such powers and functions assigned to the entities, authorities and bodies referred to in this Act, especially those relating to the following matters:

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3.1. Promotion and support to persons providing public services.

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3.2. Management and resourcing for the provision of services.

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3.3. Regulation of the provision of public services taking into account the characteristics of each region; setting goals of efficiency, coverage and quality, evaluating them, and defining the tariff regime.

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3.4. Control and monitoring of compliance with the rules and plans and programs on the subject.

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3.5. Organization information systems, training and technical assistance.

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3.6. Protection of natural resources.

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3.7. Granting subsidies to lower-income people.

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3.8. Encouraging private investment in public services.
3.9. On the principle of neutrality, to ensure that there is no discrimination in the provision of services. Editor's Notes



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All decisions of the authorities on public services should be based on the grounds that determines this Act; and the reasons invoked must be testable.

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All providers will be subject, as they are not inconsistent with the Constitution or the law, all that this Act provides for companies and their managers and, in particular, the Commissions regulations, control , inspection and supervision of the Superintendent of Public Services, and contributions to the former and the latter.


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ARTICLE 4. Essential public services. For the purposes of the proper application of the first paragraph of Article 56 of the Constitution of Colombia, all public services, covered by this Act, they are deemed essential public services. Effective Jurisprudence

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The 5th ITEM. COMPETENCE OF MUNICIPALITIES AS TO THE PROVISION OF PUBLIC SERVICES. It is the responsibility of the municipalities in relation to public services, exercising in the terms of the law and the regulations it issued subject to the councils:

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5.1. Ensure that its inhabitants are rendered efficiently, home services of water, sewer, toilet, electricity, and basic public telephone switched *, for utilities official, private or mixed character, or directly by the administration center of the respective municipality in the cases provided in the following article. Effective Notes



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5.2. Ensure the terms of this Act, the participation of users in the management and control of the entities that provide public services in the municipality.

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5.3. Having granting subsidies to low-income users, financed from the municipality budget, in accordance with the provisions of Law 60/93 and this Law.

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5.4. Stratify residential property in accordance with the methodologies outlined by the Government.

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5.5. Set in the town accurate alpha numeric nomenclature, allowing each site to identify which are to be public services.

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5.6. Support investments and other instruments described in this Act to utilities promoted by the departments and the Nation to perform activities within its competence.

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5.7. Other assigned to them by law. Editor's Notes


Constitution; Art 311.; Art 366.; Art. 367
Law 1625 of 2013, Art. 6o. Lit. b) Act 1454
2011; Art 14 Law 1450
2011.;
1176 Art.12 Act 2007.; Art. 4o, the 6th Inc., Par. Inc. on the 2nd; Art. 12; Art 19
Law 715 of 2001, Art 88
Law 617 of 2000, Art 18
Law 489 of 1998, Art 94....; 95
Art Law 388 of 1997; art. 7 paragraph 3 lit c); art. 8; art. 13, numeral 2; art. 14, paragraph 6; art. 15, paragraph 1.2; art. 17; art. 18, paragraph 2.1; art. 19, paragraph 4; art. 32; art. 3. 4; art. 35; art. 39; art. 51; art. 58, paragraph d); art. 63; art. 93; art. 112; art. 113
Law 142 of 1994; art. 3; art. 7; art. 14; art. fifteen; art. 17; art. 24; art. 53; art. 62; art. 65; art. 81; art. 166; art.
Act 187 136 1994; art. 1; art. 3
Act 128 1994; art. 4, paragraph 2; art. 14, literal d)

Law 99 of 1993 Act 60 of 1993; art. 1; art. 2, paragraph 5; art. 5; art. 30 (Repealed)
Unique Decree 1077 of 2015; Art 2.2.6.2.3.; Chapter 2.3.2.2; Art 2.3.4.1.4.15.; Chapter 2.3.4.3; Art. 2.3.5.1.2.2.17 Num. 8.
Unique Decree 1073 of 2015; Art. 2.2.3.2.3.2
Decree 2220 of 2008, 2nd.
Decree 1421 1993; art. 163; art. 164; art. 165; art. 166; art. 167; art. 168; art.
Resolution CRA 173 11 1996; art. 5 (Repealed)

ARTICLE 6o. DIRECT TO PROVIDE SERVICES BY MUNICIPALITIES. Municipalities directly render public services within its competence, when technical and economic characteristics of the service, and general conveniences permit and advise, which means that occurs in the following cases:

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6.1. When, having made the municipalities public invitation to utilities, there has not been any company that offered to lend;

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6.2. When not having companies that offered to provide the service, and having made the public invitation municipalities to other municipalities, the department to which they belong, the nation and other public or private persons to organize a utility that pay , there has been an adequate response;

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6.3. When, still having companies wishing to provide the service, has studies approved by the Superintendent to demonstrate that the costs of direct benefit to the city would be lower than those of companies concerned, and that the quality and attention to the user would at least equal to which such companies could offer. Regulatory Commissions establish the methodologies to make comparable different costs of service delivery. Effective Jurisprudence



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6.4. When municipalities assume the direct provision of a public service, general accounting of the municipality must be separated from it takes for the service; and if you pay more than one service, each must be independent of the others. In addition, its accounting distinguish between income and expenses related to such activity, and tax or non-tax revenue earning as political authorities so that the provision of services becomes subject to the same rules that would apply to other entities providing utility.

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In the event referred to in the preceding paragraph, municipalities and their authorities will be subject, as far as not inconsistent with the Constitution or the law itself, with all that this Act provides for companies and their managers and, in particular, the Commissions regulations and control, inspection, monitoring and contributions of the Superintendency of public services and Commissions. But the councils will determine whether a board is required for the municipality directly provide services and, if so, it will be composed as provided in Article 27 of this Law. Effective Jurisprudence



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When a municipality directly provide one or more public services and fails to fulfill the quality standards required by the regulatory commissions in general, or suspend payment of its obligations, or lack of proper accounting after two years of entering effective date of this Act or, finally, violate in serious form the obligations it contains, the Superintendent, in defense of users and to protect the health and welfare of the community, and punish the mayors and administrators, may invite, on consulting the respective committee, when they are formed, to a utility so that it assumes the service, and to impose an easement on municipal property necessary for it to operate.

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According to Article 336 of the Constitution, the authorization to a municipality to provide public services directly it will not be used, in any case, to constitute a monopoly right. Effective Jurisprudence



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ARTICLE 7. COMPETENCE OF DEPARTMENTS FOR THE PROVISION OF PUBLIC SERVICES. They are the responsibility of the departments in relation to public services, the following support functions and coordination, exercising in the terms of the law and the regulations it issued subject to the assemblies:

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7.1. Ensure rendered in its territory the activities of electricity transmission, by official, mixed or private companies.

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7.2. financial, technical and administrative support to utilities operating in the Department or municipalities that have assumed the direct delivery support and companies organized with the participation of the Nation or departments to develop the functions of its competence in for public services.

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7.3. Organize coordination systems the entities providing public services and promote, where technical and economic reasons warrant, the organization of associations of municipalities for the provision of public services, or the holding of inter-administrative agreements for the same effect. Editor's Notes



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7.4. Other assigned to them by law. Editor's Notes



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Article 8. COMPETENCE OF THE NATION FOR THE PROVISION OF PUBLIC SERVICES. It is the responsibility of the Nation:

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8.1. As custodial, plan, allocate, manage and control the use of the electromagnetic spectrum.

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8.2. As custodial plan, allocate and manage fuel use gas as is economically and technically possible, through official, mixed or private companies.

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8.3. Ensure that occur in the country, through official, mixed or private companies, the activities of generation and interconnection to the national electricity networks, interconnection to the public telecommunications network *, and marketing activities, construction and operation of gas pipelines and networks for other services arising from technological development and requiring interconnection networks, according previous concept of the National Council for Economic and Social Policy. Effective Notes



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8.4. financial, technical and administrative support to the utilities or municipalities that have assumed the direct delivery support and companies organized with the participation of the Nation or departments to develop the functions of its competence in the field of public services and companies whose capital belongs mainly to one or more cooperatives or associations companies cooperative nature.

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8.5. Ensure that public service providers comply with standards for the protection, conservation or, when required, recovery of natural or environmental resources that are used in the generation, production, transportation and disposal of such services.

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8.6. Lend directly when departments and municipalities do not have sufficient capacity, services covered by this Act.

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8.7. The other duties assigned by law.

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Article 9. RIGHT OF USERS. Users of public services are entitled, in addition to those set forth in the National User Statute and other regulations that enshrine rights in their favor, [provided they do not contradict this law, a]: Effective Notes



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Previous legislation
9.1. Get companies measuring their actual consumption through appropriate technological instruments, within limits and terms for the purposes set by the regulatory commission, with attention to the technical and financial capacity of enterprises or categories of municipalities established by law .

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9.2. The free choice of the service provider and supplier of goods necessary to obtain or use.

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9.3. Get the goods and services offered as or greater than those provided massively amount, provided this does not harm others and that the user to assume the costs.

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9.4. Request and obtain complete, accurate and timely information on all activities and direct or indirect operations performed for the provision of public services, provided that no case of information classified as secret or confidential by law and comply with the requirements and conditions stipulated by the Superintendency of Public Utilities.

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PARÁGRAFO. [Commissions Regulations], the exercise of the functions conferred by the existing rules, may not impair the rights of users recognized by law. Effective Notes

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Previous legislation
ARTICLE 10. FREEDOM OF ENTERPRISE. It is the right of all people to organize and operate companies whose purpose is the provision of public services, within the limits of the Constitution and the law.

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ARTICLE 11. SOCIAL FUNCTION OF THE PROPERTY IN THE PUBLIC SERVICE PROVIDERS ENTITIES. To fulfill the social function of property, public or private entities providing public services have the following obligations:

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11.1. Ensure that the service is provided continuously and efficiently, without abuse of dominant position the entity may have against the user or third parties.

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11.2. Refrain from monopolistic or restrictive competition practices, if any, in fact, the possibility of competition.

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11.3. Facilitate access to subsidies granted by the authorities to low-income users.

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11.4. Inform users about how to use efficiently and safely respective public service.

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11.5. Fulfill their ecological function, for which, and as their activity affects them, will protect the diversity and integrity of the environment, and conserve areas of special ecological importance, reconciling these objectives with the need to increase coverage and affordability of community services.

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11.6. Provide access and interconnection to other companies or entities that provide public services, or are large users of them, goods used for the organization and delivery of services.

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11.7. Collaborate with the authorities in cases of emergency or public calamity, to prevent serious harm to users of public services.

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11.8. Report the start of its activities to the respective Regulatory Commission, and the Superintendent of Public Services, for these authorities to fulfill their duties. Effective Jurisprudence



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Companies that the issuance of this law are functioning must report their existence to these organisms within a period of sixty (60) days.
11.9. Service companies shall be liable for the damages caused to users and are obliged to repeat against the directors, officers and contractors who are responsible for fraud or negligence without prejudice to any criminal penalties that may apply.

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11.10. The other under this Act and the regulations consistent and complementary.
PARÁGRAFO. Administrative acts of non-punitive individual character that impose obligations or restrictions on those who provide public services and affect their profitability, generate responsibility and right to compensation, except in the case of decisions have also issued for other people located in the same situation .

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ARTICLE 12. SPECIAL DUTIES OF USERS OF OFFICIAL SECTOR. Failure to comply with official bodies of their duties as users of public services, especially with regard to the incorporation in the respective budgets of sufficient appropriations and the effective payment of services used, is grounds for misconduct to their legal representatives and officials responsible, punishable by dismissal. Editor's Notes



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ARTICLE 13. APPLICATION OF GENERAL PRINCIPLES. The principles contained in this chapter will be used to resolve any difficulties of interpretation in applying the rules on public services to which this and other laws refer, and to fill the gaps they arise.

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CHAPTER II. SPECIAL DEFINITIONS


ARTICLE 14. DEFINITIONS. To interpret and apply this Act the following definitions shall apply:
14.1. RUSH. Derivation of the local network of the respective service that reaches the court record of the property. In apartment buildings or condominiums, Rush reaches the general court registry. In the case of sewage Rush is the derivation of the box inspection and reaches the collector of the local network.

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14.2. Complementary activity of a public service. They are the activities to which this Act also applies, according to the precision that is forward, defining each public service. When public services, without special precision mentioned in this Act, including such activities are understood. Effective Jurisprudence



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14.3. MINIMUM COST OPTIMISED: the plan resulting from a least-cost expansion.

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14.4. Agglomeration economies. Which gets a company that produces or provides various goods or services.

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14.5. UTILITIES COMPANY OFFICIAL. It is one in the capital of the Nation, territorial entities or decentralized entities of that or these have 100% of contributions.

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14.6. MIXED COMPANY PUBLIC UTILITIES. It is one in the capital of the Nation, territorial entities or decentralized entities or that they have equal or greater than 50% contributions. Effective Jurisprudence



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14.7. PRIVATE COMPANY PUBLIC UTILITIES. Those whose capital is majority owned by private persons or entities that emerged international conventions wishing to undergo full for this purpose by the rules to which individuals are subjected. Effective Jurisprudence



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14.8. SOCIOECONOMIC STRATIFICATION. It is the classification of residential property of a municipality, which is made in view of the factors and procedures established by law.

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14.9. Utility bill. It is the mind that a person providing public services delivery or refers the user, because of the inherent consumption and other development services contract public services.

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14.10. FREEDOM REGULATED. Tariff system whereby the commission of respective regulation will establish the criteria and methodology under which companies public utilities can determine or modify the maximum prices for services offered to the user or consumer. Effective Jurisprudence



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14.11. PROBATION. Tariff system whereby public utilities companies can freely determine the rates sales to small and medium consumers, with the obligation to report in writing to the regulatory commissions, on decisions taken on this matter. Effective Jurisprudence



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14.12. EXPANSION PLAN minimal cost. Investment plan medium and long term, the technical, economic, financial, and environmental feasibility, guarantees minimize costs of service expansion. Official investment plans are indicative and will be made in order to ensure continuity, quality, and reliability in service delivery.

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14.13. DOMINANT POSITION. It is having a utility company regarding its users; and that a company has, with respect to market their services and close substitutes for it, when it serves 25% or more of the users that make up the market.

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14.14. DIRECT SERVICES RENDERED BY A MUNICIPALITY. It is assumed by a municipality, under its own legal personality, its staff and its assets.

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14.15. MARGINAL PRODUCERS, SEPARATE OR FOR PARTICULAR USE. It is the natural or legal person using own resources and technically accepted by the current regulations for each service, produce goods or services of the object of utilities for themselves or for a clientele composed exclusively by those with direct economic links with her or partners or members or as a byproduct of another main activity. Effective Notes



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14.16. INTERNAL NETWORK. It is the set of networks, pipes, fittings and equipment that make up the system of public service delivery to the property from the meter. For apartment buildings or condominiums, it is that the service delivery system to register property from general court when any.

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14.17. LOCAL NETWORK. It is the set of networks or pipes that make up the supply system of public service to a community in which connections are derived property. The construction of these networks by Decree 951 of 1989, as long as it does not contradict defined in this Act shall be governed.

Editor's Notes

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14.18. Regulation of Public Utilities. The power to issue general regulations [or particularly in terms of the Constitution and this law], to subject the conduct of persons providing public utility services to the rules, norms, principles and duties established by law and regulations. Effective Notes

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14.19. BASIC SANITATION. They are the activities of all household sewerage and sanitation services.

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14.20. PUBLIC SERVICES. Are all complementary services and activities to which this law applies. Effective Notes



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14.21. Domestic Public Services. Services are water, sewer, toilet, electricity, switched basic public telephony, rural mobile *, gas and fuel distribution, as defined in this chapter. Effective Notes



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14.22. PUBLIC SERVICE HOUSEHOLD WATER SUPPLY. also called domiciliary public drinking water. It is the municipal distribution of water suitable for human consumption, including its connection and measurement. this Act shall also apply to the complementary activities such as water harvesting and processing, treatment, storage, handling and transportation.

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14.23. PUBLIC SERVICE HOUSEHOLD SEWAGE. It is the municipal waste collection, particularly liquids, through pipes and ducts. this Act shall also apply to the complementary activities of transportation, treatment and disposal of such waste.

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14.24. PUBLIC SERVICE TOILET. It is the service municipal waste collection, mainly solid. this law shall also apply to the follow-transport, treatment, use and disposal of such waste.

It also includes, among others, the follow-mowing and pruning trees located on roads and public areas; washing these areas, transfer, treatment and utilization. Effective Notes



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14.25. PUBLIC SERVICE ELECTRIC POWER DOMICILIARIO. Is the transmission of electricity from the regional transmission networks to the home of the end user, including its connection and measurement. this Act shall also apply to the follow-up generation, marketing, transformation, interconnection and transmission.

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Concordant
14.26. PUBLIC SERVICE DOMICILIARIO SWITCHED PUBLIC TELEPHONE BASIC. It is the basic telecommunications service, one of whose objects is the switched voice transmission over the general switched telephone network with public access, in the same municipality. this Act shall also apply to the complementary activity of rural mobile phone service and domestic and international long distance. Excepted cellular mobile telephony, which is governed in all respects by Law 37 of 1993 and its implementing regulations or rules that modify, supplement or replace. Effective Notes



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14.27. PUBLIC SERVICE LONG DISTANCE NATIONAL AND INTERNATIONAL. It is the public switched basic telephony service that lends between localities of the national territory or between these in connection to the outside. Effective Notes



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14.28. PUBLIC SERVICE FUEL GAS DOMICILIARIO. It is the set of activities ordered the distribution of combustible gas by pipeline or other means, from a collection site large volumes or from a central gas pipeline to the installation of a final consumer, including its connection and measurement. this Act shall also apply to the additional marketing activities from production and transportation of gas for a major pipeline or other means from the site of generation to the one where you connect to a secondary network.

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14.29. SUBSIDY. Difference between what is paid for a good or service, and the cost of this, when such cost is greater than the payment is received.

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14.30. SUPERINTENDENT OF PUBLIC UTILITIES. He is a person of public law under the Ministry of Development shall have the functions and structure determined by law. In this Act it will be referred to it by name or as "Superintendent of public services" or simply "Superintendency". Editor's Notes

Effective Notes

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14.31. SUBSCRIBER. natural or juridical person which has concluded a contract of uniform conditions of public services.

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14.32. POTENTIAL SUBSCRIBER. Who has started consultations to become users of public services.

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14.33. USER. natural or juridical person who benefits from the provision of a public service, as well as owner of the property where this is provided, or as a direct recipient of the service. The latter is also called consumer user.

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14.34. Economic ties. It is understood that there is an economic link in all cases that define the commercial and tax laws. In case of conflict, the latter is preferred.

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I. TITLE OF PUBLIC SERVICE PROVIDERS PEOPLE
ARTICLE 15. PERSONS
providing public services. They can provide public services:

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15.1. The utilities.

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15.2. Natural or legal persons who produce for themselves, or as a result or complement of its main activity, goods and services of the object of the utilities.

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15.3. Municipalities when they take directly, through its central administration, the provision of public services, as provided in this Act.

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15.4. Organizations authorized under this Act to provide public services in smaller municipalities in rural areas and in specific areas or urban areas. Effective Jurisprudence



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15.5. Entities authorized to provide public services during the transition periods provided in this Act.

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15.6. Decentralized entities of any territorial or national order issued at the time of this Act are to provide any public services and comply with the provisions of Article 17 paragraph

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ARTICLE 16. LAW ENFORCEMENT SERVICES TO PRODUCERS OF MARGINAL, [INDEPENDENT] OR FOR PARTICULAR USE. Producers of marginal services or for private use be subject to Articles 25 and 26 of this Act. And shall also be subject to other relevant provisions of this Law, all acts or contracts entered into to supply the goods or services whose provision is part of the object of utilities, other people in a massive way, or in exchange for any kind of compensation, or free to those who have economic links with them according to law, or in any manner which could reduce the conditions of competition. The legal persons referred to in this article shall not be obliged to organize as utilities, except by order of a regulatory commission. In any case it is understood that independent producers of marginal services or for particular use of electricity are subject to the provisions of Article 45 of Law 99 of 1993. Effective Notes

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Previous legislation
PARÁGRAFO. Where public services and basic sanitation available aqueduct be binding bond as user and meet the respective duties, or prove that there are alternatives that do not harm the community. The Superintendent of Public Services shall be the competent authority to determine whether the proposed alternative does not cause harm to the community.

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Police authorities, on its own initiative or at the request of any person proceed to seal the residential or open to public property, that being located in areas that can receive water services and basic sanitation have not been made users them and preserve that character.

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CHAPTER I. LEGAL STATUS OF UTILITIES

ARTICLE 17. NATURE. The utilities are joint stock companies whose object is the provision of public services in this Law.

Term Notes Effective Jurisprudence

Editor's Notes



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Concordant PARAGRAPH 1.
. Decentralized entities of any territorial or national, whose owners do not want their capital is represented by shares, should take the form of state industrial and commercial company. Effective Jurisprudence



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Concordant
While law that Article 352 of the Constitution provides otherwise, their budgets will be approved by the respective boards of directors are concerned. In any case, the regime applicable to decentralized entities of any territorial level providing public services, in everything that is not directly available to the Constitution, shall be that provided in this Act. The Superintendency of Public Utilities may require modifications in the statutes of the decentralized entities that provide public services and have not been approved by Congress, they do not conform to the provisions of this Act.

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Concordant PARAGRAPH 2.
. Official utilities must, at the end of the fiscal year, up reserves for rehabilitation, expansion and replacement of systems.

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Concordant
ARTICLE 18. PURPOSE. The utility company aims to provide one or more public services to which this Act applies, or perform one or more of the follow, or another thing.

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The regulatory commissions may require a utility to have a unique object when establishing multiple object that limits competition and does not produce economies of scale or agglomeration for the benefit of the user. In any case, the utilities that have multiple social object must keep separate for each accounting services rendered; and the cost and mode of operations between each service must be recorded explicitly. Effective Jurisprudence



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The utilities may participate as partners in other utilities; or in whose main purpose is the provision of a service or providing indispensable to fulfill its purpose, if there is already a wide range of the goods or services on the market. They may also be associated, in developing its object, national or foreign, or form consortia with them.

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PARÁGRAFO. Regardless of its purpose, all legal persons are entitled to make investments in utilities. The object of the organized communities always means including the power to promote and provide utilities, under the conditions of this law and the law that regulates them. In public tenders referred to this Act shall be preferred to the companies in which such communities have most, if these companies are on an equal footing with other participants.

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ARTICLE 19. LEGAL SYSTEM OF UTILITIES. The utilities are subject to the following legal regime:

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19.1. The company name should be followed by the words "utility" or "ESP".
19.2. The duration will be indefinite.

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19.3. Capital contributions may belong to national or foreign investors.

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19.4. Increases authorized capital may be arranged by decision of the Board of Directors, in the case of new investments in the infrastructure of public services of its object, and even those have the value. The company may offer, without being subject to the rules of public offering of securities nor to those contained in Articles 851, 853, 855, 856 and 858 of the Commercial Code, the new shares to the users who will be beneficiaries of investments who if the purchase, the pay on time the company established simultaneously with service bills. Effective Jurisprudence



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19.5. By forming the company, the partners freely agree on the part of the authorized capital that subscribes.

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19.6. Be free determination of the value of the shares to be paid at the time of subscription, and the deadline for payment of the part to be due out. But the company, always inform their financial statements, which part of its capital has been paid and which not.

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19.7. The valuation of in-kind contributions that companies receive administrative approval does not require any authority; It may be made by the preliminary meeting of founding shareholders, with the vote of two thirds of the members or by the Board, as provided by statutes. In any case valuations are subject to subsequent control of the competent authority.

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19.8. Companies can operate even when not done the registration requirements of Article 756 of the Civil Code for acts related to real property, related to its constitution. It is the duty of the contributors and administrators use the greatest care to ensure that such records are made, and while this does not happen, will not be taken by the respective contributions paid. Those who take advantage of the absence of registration to carry out any act of disposal or encumbrance in respect of property or rights in such property has the company, to the detriment of it, commit crime of fraud, and the respective act is absolutely null.

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19.9. In the assemblies the members may cast as many votes as correspond to their actions; but all decisions require the affirmative vote of a plural number of partners.

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19.10. The issue and placement of shares does not require prior approval of any authority; but whether to make a public offering of them to persons other than users who are to benefit from infrastructure investments required registration in the National Securities Registry.

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19.11. The minutes of the meetings shall be kept; and must send a copy of them and of balance sheets and profit and loss statements to the Superintendency of Public Utilities. The Superintendency will have on the balance sheets and the profit and loss of the powers which Article 448 of the Commercial Code. It will also be necessary to send these documents to the public entity that has the competition for the service or regulation commission when one of them or request a partner.
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19.12. The company will not be dissolved but by the grounds provided for in paragraphs 1 and 2 of Article 457 of the Commercial Code, or in the event that all shares subscribed come to belong to a shareholder.

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19.13. If verified one of the grounds for dissolution, administrators are required to perform the acts and contracts that are essential to not interrupt the provision of services by the company, but will immediately notify the competent authority for the service and the Superintendency of public services, and immediately convene the General assembly to fully disclosed and documented the situation. In no way is hidden from third parties with whom the company negotiates the situation is this; concealment will severally liable managers for the obligations undertaken and the damage they cause.

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19.14. . Effective Jurisprudence

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19.15. In the rest, the utilities will be governed by the rules of the Code of Commerce on corporations. Editor's Notes



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19.16. The composition of the boards of the companies providing public services shall be governed solely by the law and statutes in which there will be established directly proportional to the share ownership representation in them.

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19.17. In the case of joint ventures where the state contribution consists in the enjoyment of the property associated with the provision of public service, subscription, valuation and payment by private law, contribution shall be fully ruled that in accordance with the provisions of Commercial code, include the regulation of the obligations of the usufructuary, in particular as regards ordinary expense of conservation and the grounds for the restitution of the assets transferred.

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ARTICLE 20. SYSTEM OF UTILITIES IN MINOR MUNICIPALITIES AND RURAL AREAS. The utilities operating exclusively in one of the municipalities classified as minor by law, and according to previous regulations of the relevant regulatory commission may depart from the provisions of the preceding article in the following aspects:
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20.1. They may be established by private document, which must comply with the provisions of Article 110 of the Commercial Code, as appropriate, and operate with two or more partners.

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20.2. The equity securities they issue may be subject to endorsement in administration to celebrate their regard the securities deposit contract, regardless of whether they are registered in the National Securities Registry.

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It is the duty of mayors and police inspectors personeros custody temporarily, at the request of the holders, the securities referred to in the preceding paragraph, and heed the instructions of holders to facilitate their deposit in a society manager central securities depositories.
The same officials take measures to enable them to verify the legitimacy, integrity and authenticity of the values ​​assigned to them, and issue a receipt of proof, with a copy to the holders and file. The Government will regulate the matter.

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ARTICLE 21. COMMON ADMINISTRATION. The commission of respective regulation may authorize a utility to have common administrators with another operating in a different territory, to the extent that it makes more efficient operations and does not reduce competition. Effective Jurisprudence



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operation. The utilities duly constituted and organized not require permission to develop its business purpose, but to operate must be obtained from the competent authorities, as appropriate, concessions, permits and licenses referred to in Articles 25 and 26 of this law, according to the nature of their activities.

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ARTICLE 23. TERRITORIAL SCOPE OF OPERATION. The utilities can operate on equal terms anywhere in the country, subject to the rules governing the territory of the relevant department or municipality.

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Also, as provided by the exchange or tax rules, companies can develop its object abroad without additional permission from the Colombian authorities.

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Obtaining outside water, fuel gas, power or network access for the benefit of users in Colombia, not be subject to any restrictions or tariff contribution or otherwise, or other administrative permissions than apply to internal activities of the same class, but to the common currency and tax rules. The commissions of regulation, however, may prohibit users water is provided outside the fuel gas, energy, or network access when there are users in Colombia whom there is the physical and financial ability to attend, but whose demand had not been satisfied with the rates resulting from the formulas approved by the committees. Effective Jurisprudence



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ARTICLE 24. TAX REGIME. All the entities providing public services are subject to national tax system and local authorities, but these special rules are observed:

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24.1. Departments and municipalities can not tax the utilities rates or taxes that [no] are applicable to other taxpayers who meet industrial or commercial functions. Effective Notes

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24.2. For a period of seven years exímase companies public utilities municipal order, be they private, official or mixed nature, payment of income tax and complementary on profits will be capitalized or to be incorporated in reserves for rehabilitation, expansion and replacement of systems.

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24.3. Companies public services are not subject to the presumptive income established in the Tax Code in force.

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24.4. For a period of ten years from the effective date of this Act, cooperatives, associations, unions, central leagues, agencies greater degree of financial, auxiliary institutions of cooperatives, cooperative confederations and, in general, all business associations cooperative nature may be deducted from gross income investments made in utilities.

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24.5. Exemption from stamp duty containing the Tax Code Article 530, paragraph 17, to the agreements between creditors and debtors of an establishment, with the intervention of the banking superintendency, when it is in possession of such property shall apply the agreements concluded during the illiquidity or insolvency of a utility, which has led to the takeover or liquidation order company. Effective Jurisprudence

Editor's notes



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ARTICLE 25. CONCESSIONS, PERMITS AND ENVIRONMENTAL AND HEALTH. Require those who provide public services concession contracts, with the competent authorities according to law, to use the water; to use the electromagnetic spectrum in the delivery of public services will require a license or concession contract. Effective Notes


They must also obtain environmental and health permits that the very nature of their activities make necessary, in accordance with the common rules.
It is also required of those who provide public services, investing in the maintenance and recovery of public well exploited through concession contracts.
If it comes to the provision of potable water or basic sanitation in accordance with the distribution of powers provided by law, the competent authorities shall verify the technical suitability and financial solvency of the applicant for the purposes [of] the relevant procedures. Effective Notes



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ARTICLE 26. MUNICIPAL PERMITS. In each municipality, public service providers are subject to the general rules on urban planning, circulation and transit, use of public space, and security and tranquility citizens; and authorities can require them appropriate to the risks they believe guarantees.

Municipalities should allow permanent installation of networks for the activities of utilities, or the provision of the same goods and services that they provide, in the underground part of the roads, bridges, ejidos, platforms and other property for public use. Businesses will, in any case, responsible for all damages and damages caused by poor construction or operation of their networks.

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The municipal authorities in no case may deny or condition the utilities licenses or permits for the issue of which are to have jurisdiction under the law, for reasons that have had to be considered by other competent authorities for granting permits, licenses or concessions, or to favor monopolies or limit competition.

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CHAPTER II.
ENTITIES PUBLIC PARTICIPATION IN UTILITIES

ARTICLE 27. SPECIAL RULES ON PUBLIC PARTICIPATION ENTITIES. The Nation, territorial entities and decentralized entities of any administrative level to participate in any capacity in the capital of the utilities, are subject to the following special rules:

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27.1. They can not give or receive the privilege or subsidy companies other than those required by this Act.

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27.2. They may dispose of their contributions, for which it will take into account systems to ensure adequate publicity and democratization of property in accordance with this Act and development of the provision contained in Article 60 of the Constitution.

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27.3. They should require the utilities, professional management, oblivious to partisan interests, taking into account the needs of service development in the medium and long term. At the same time it is his right to set criteria and specific efficiency administration to look for in such companies persons representing their rights therein in accordance with the general criteria set regulatory commissions. Effective Jurisprudence



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For these purposes, entities may enter into trusteeship or mandate for the professional management of their shares in utilities, with people who make the best deals, following a public invitation.

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27.4. In the utilities with official contributions are assets of the nation, territorial entities or decentralized entities, the contributions made by them to capital, the rights they confer on the remaining assets, and dividends that may you correspond. For these goods, and the acts or contracts dealing directly, expressly and exclusively on them, monitoring the Comptroller General of the Republic shall apply, and departmental and municipal comptrollers, as companies do not make use of the authorization which is given in the following paragraph. Effective Jurisprudence



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The check may be carried out by Colombian private companies chosen by public competitive examination and contracted prior concept of the State Council or the competent Administrative Court, as the case of shares or contributions or national territorial entities. Effective Jurisprudence



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27.5 Authorities of local authorities, without prejudice to the powers assigned by law, shall ensure to official utilities, the exercise of their administrative autonomy and continuity in management practice to demonstrate effectiveness and efficiency. They may not put before such managerial continuity, interests other than those of good service delivery.

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27.6. Members of the boards of directors of government companies household utilities will be chosen by the president, governor or mayor, as companies try to national, departmental and municipal public services. In the case of the Boards of official business of public utilities of the municipal order, these shall be appointed as follows: two thirds will be freely appointed by the mayor and a third double portion between the Members of Control registered by the Committees development and Social Control of public services. Effective Jurisprudence



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27.7. The contributions made by the nation, territorial entities and decentralized entities of any administrative level to utilities will be governed in a whole by the rules of private law. Effective Jurisprudence



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CHAPTER III.
PROPERTY OF UTILITIES
ARTICLE 28.
NETWORKS. All companies have the right to build, operate and modify their networks and facilities to provide public services, for which they will meet the same requirements, and shall exercise the same powers as the laws and other relevant rules provide for official entities that have been responsible for providing the same services, and the individuals under this Act.

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Companies are required to perform maintenance and repair of local networks, the costs will be borne by them.

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Regulatory commissions may require any possibility of interconnection and network technical approval, where necessary to protect users, to ensure the quality of service or to promote competition. But in no case will require specific networks or systems beyond those necessary to ensure the interconnectivity of similar services or features coordinated use of resources. The committees may require also that the construction and operation of networks and transport to provide public services is not part of the object of the same companies that are responsible for distribution and also know appellate remedies against acts of any authority relating to the construction or operation of networks. The construction and operation of networks for the transport and distribution of water, waste, electricity, gas and switched basic public telephony, local mobile telephony in the rural sector * and the marking of fees for use shall be governed exclusively by this law and the environmental, health and municipal alluded to in articles 25 and 26 of this Act.

Term Notes Effective Jurisprudence

Effective Notes



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