Law 143 Of 1994

Original Language Title: LEY 143 de 1994

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143 OF 1994

(July 11)

Official Journal No. 41,434 of 12 July 1994.

by which the regime is established for the generation, interconnection, transmission, distribution and marketing of electricity in the national territory, authorizations are granted and other energy provisions.

THE CONGRESS OF COLOMBIA,

DECRETA:

CHAPTER I.

GENERAL PRINCIPLES.

ARTICLE 1o. This Law establishes the regime of the activities of generation, interconnection, transmission, distribution and marketing of electricity, which are hereinafter referred to as activities of the sector, in accordance with the constitutional and legal functions corresponding to the Ministry of Mines and Energy.

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ARTICLE 2o. The Ministry of Mines and Energy, in the exercise of the functions of regulation, planning, coordination and monitoring of all activities related to the public service of electricity, define the criteria for the economic exploitation of conventional and non-conventional energy sources, within an efficient and sustainable comprehensive management of the country's energy resources, and promote the development of such sources and the efficient and rational use of energy by users.

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ARTICLE 3o. In relation to the public electricity service, the State corresponds to:

a) Promote free competition in the activities of the sector;

(b) Prevent practices that constitute unfair competition or abuse of a dominant position on the market;

c) Regular situations where, for reasons of natural monopoly, free competition does not guarantee its efficient delivery in economic terms;

d) Ensure the protection of the rights of users and the fulfilment of their duties;

e) Ensuring the proper incorporation of environmental aspects in the planning and management of the sector's activities;

f) To achieve coverage in the electricity services to the different regions and sectors of the country, which guarantees the satisfaction of the basic needs of the users of strata I, II and III and those of lower rural resources, to through the various public and private actors providing the service;

g) Ensure the availability of the necessary resources to cover the subsidies granted to the users of strata I, II and III and those of lower income in the rural area, to meet their basic electricity needs.

PARAGRAFO. To ensure compliance with the above, the National Government will have the resources generated by the national contribution that is mentioned in article 47 of this Law and by national budget resources, which shall be appropriated annually in the income and law budget of appropriations by the Ministry of Finance and Public Credit.

However, pursuant to Article 368 of the Political Constitution, departments, districts, municipalities and decentralized entities may grant subsidies, in their respective budgets.

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ARTICLE 4. The State, in connection with the electricity service, will have the following objectives in the performance of its functions:

a) Supply the demand for electricity from the community under economic and financial viability criteria, ensuring its coverage in a framework of rational and efficient use of the country's different energy resources;

b) Ensure efficient, safe and reliable operation of industry activities;

c) Maintain and operate its facilities while preserving the integrity of people, goods and the environment and maintaining established levels of quality and safety.

PARAGRAFO. If the various economic operators wish to participate in the electricity activities, they must be subject to compliance with the above objectives.

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ARTICLE 5o. The generation, interconnection, transmission, distribution and marketing of electricity are intended to satisfy primary collective needs on a permanent basis; for this reason, they are considered essential public services, mandatory and supportive, and of public utility.

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ARTICLE 6o. The activities related to the electricity service will be governed by principles of efficiency, quality, continuity, adaptability, neutrality, solidarity and equity.

The principle of efficiency requires the correct allocation and use of resources in such a way as to guarantee the delivery of the service at the lowest economic cost.

By virtue of the principle of quality, the service provided must meet the technical requirements laid down for it.

The principle of continuity implies that the service must still be provided in cases of bankruptcy, liquidation, intervention, replacement or termination of contracts of the companies responsible for it, without interruptions other than those scheduled for technical reasons, force majeure, fortuitous case, or for the penalties imposed on the user for the failure to comply with his obligations.

The principle of adaptability leads to the incorporation of the advances of science and technology that bring greater quality and efficiency in the delivery of the service at the lowest economic cost.

The principle of neutrality requires, within the same conditions, equal treatment for users, without discrimination other than those arising from their social status or from the technical conditions and characteristics of the provision of the service.

For solidarity and income redistribution, it is understood that when designing the tariff regime, the establishment of factors will be taken into account so that the consumption sectors with higher incomes will help people with lower incomes. can pay the rates of electricity consumption to meet their basic needs.

By the principle of equity, the state will be able to achieve a balanced and adequate coverage of energy services in the different regions and sectors of the country, in order to guarantee the satisfaction of the basic needs of the entire population. population.

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ARTICLE 7o. In the activities of the sector, different economic agents, public, private or mixed, will be able to participate, which will enjoy the freedom to develop their functions in a free context competence, in accordance with Articles 333, 334 , and the penultimate paragraph of the article 336 of the National Constitution, and article 3or. of this Law.

In the cases indicated by the law, to operate or to operate the projects, the competent authorities must obtain the respective environmental, sanitary, water and municipal permits that are (a)

PARAGRAFO. The marketing activity can only be carried out by those economic operators who carry out some of the generation or distribution activities and by independent operators who comply with the provisions of the Commission Energy and gas regulation.

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ARTICLE 8. The public companies that provide the electricity service upon the entry into force of this Law, in any of the activities of the sector, must have administrative autonomy, patrimonial and budget.

Unless otherwise provided by law, the budgets of the public entities of the territorial order will be approved by the corresponding boards, without requiring the participation of other authorities.

PARAGRAFO. The recruitment regime applicable to these companies will be that of private law. The Energy and Gas Regulatory Commission may make it mandatory to include exceptional clauses in the common law in some of the contracts to be concluded by such entities. When their inclusion is forced, all these clauses will be subject to the General Staff Regulations of Public Administration.

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ARTICLE 9o. The President of the Republic shall exercise by means of the Superintendence of Public Services domiciled the control of efficiency and quality of the public service of electricity and control, inspection and surveillance of the entities providing the public electricity service, as provided for in the law.

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ARTICLE 10. When the State decides to summon the different economic agents to develop any of the activities of the sector governed by this law, they must demonstrate experience in carrying out the same and having sufficient technical, operational and financial capacity to enter into the contracts necessary for this purpose, which shall be regulated in accordance with the provisions of this Law, in private law or in special provisions according to the legal nature of the provisions.

CHAPTER II.  

SPECIAL DEFINITIONS.

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ARTICLE 11. To interpret and apply this Law, the following general definitions are taken into account:

National interconnected system: is the system composed of the following connected elements: the generation plants and equipment, the interconnection network, the regional and inter-regional transmission networks, the distribution networks, and the electrical charges of the users.

National interconnection network: set of lines and substations, with their associated equipment, including international interconnections, intended for the service of all members of the interconnected system national.

Regional or interregional transmission networks: set of transmission lines and substations, with their associated equipment, intended for the service of a group of members of the national interconnected system within the same area or adjacent areas, determined by the energy and gas regulatory commission.

Distribution networks: set of lines and substations, with their associated equipment, intended for the service of the users of a municipality or adjacent municipalities or associated by any of the forms provided in the the Political Constitution.

Operations Regulation: set of principles, criteria, and procedures established for planning, coordinating, and executing the operation of the national interconnected system and for regulating the operation of the wholesale electricity market. The operating regulation comprises several documents which will be organised in accordance with the specific issues of the functioning of the national interconnected system.

Wholesale Market: is the market for large electrical energy blocks, in which generators and marketers sell and buy energy and power in the national interconnected system, subject to the operation.

Regulated freedom: The rate regime by which the Energy and Gas Regulatory Commission will set the criteria and methodology under which electricity companies will be able to determine or modify the maximum prices for the services offered.

Marketing: activity consisting of the purchase of electrical energy and its sale to end users, regulated or unregulated, that will be subject to the provisions of this Law and the public services law in the relevant case.

Regulated User: Natural or legal person whose electricity purchases are subject to tariffs set by the Energy and Gas Regulatory Commission.

Non-regulated user: natural or legal person, with a maximum demand exceeding 2 Mw per legalized installation, whose electricity purchases are made at freely agreed prices. The Energy and Gas Regulatory Commission may review this level by means of a reasoned resolution.

Integrated operation: is the optimal operation that is advanced by two or more independent systems.

Autogenerator: The generator that produces electrical power exclusively to meet its own needs.

Regional dispatch center: is a monitoring and control center for the operation of the networks, substations, and generation plants located in the same region, whose function is to coordinate the operation and manoeuvres of such facilities, subject to the relevant provisions, to the instructions given by the National Dispatch Centre, in the development of the forecasts contained in the Operation Regulation, in order to ensure a safe operation and reliable of the interconnected system.

National Dispatch Center: is the unit responsible for the planning, supervision and control of the integrated operation of the generation, interconnection and transmission of the national interconnected system.

It is also in charge of issuing the instructions to the Regional Offices of Dispatch to coordinate the maneuvers of the facilities in order to have a safe, reliable operation and to the rules of operation and all the agreements of the National Operation Council.

Subsistence consumption: is defined as subsistence consumption, the minimum amount of electricity used in a month by a typical user to meet basic needs that can only be met by this form of final energy. For the calculation of subsistence consumption, only substitute energy may be taken into account when these are available for use by these users.

Non-interconnected zones: Geographical area where the public electricity service is not provided through the National Interconnected System.

When necessary, the interpretation and application of these definitions will be done by the Energy and Gas Regulatory Commission.

CHAPTER III.  

EXPANSION PLANNING.

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ARTICLE 12. The planning of the expansion of the national interconnected system will be done in the short and long term, so that the plans to meet the demand are flexible enough to adapt to changes that determine the technical, economic, financial and environmental conditions; that meet the requirements of quality, reliability and safety determined by the Ministry of Mines and Energy; that the proposed projects are technically, environmentally and economically viable and that the demand is met

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ARTICLE 13. The Mining-Energy Planning Unit, which deals with Article 12 of Decree 2119 of 1992, will be organized as a Special Administrative Unit attached to the Ministry of Mines and Energy, with own assets and legal status and special arrangements for recruitment, administration of staff, salaries and benefits and with budgetary autonomy.

The Unit will manage its budget resources and will operate through a contract of commercial trust that the Ministry of Mines and Energy will hold with a fiduciary entity, which will be subject to the rules of private law. These provisions shall also govern the acts and contracts which are carried out under the respective contract of fiducia.

For compliance with article 60 of the Political Constitution, for companies in the energy sector, the Decree-Law 663 of 1993 will be applied in the appropriate way. The National Government will point out the special financing conditions.

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ARTICLE 14. The budget of the Energy-Energy Planning Special Administrative Unit will be part of the general budget of the Nation and will be presented to the Ministry of Mines and Energy for its incorporation into it, its annual distribution will be made by resolution issued by the Ministry of Mines and Energy and endorsed by the Director General of National Budget of the Ministry of Finance and Public Credit, in accordance with the provisions contained in Law 38 of 1989 and in other rules which regulate, modify or replace it.

PARAGRAFO. This budget will be borne by the Colombian Petroleum Enterprise (Ecopetrol), by the Colombian Coal Company (Ecocarbon), National Energy Financial (FEN-E) and Electrical Interconnection S. A -ISA- equal parts. These entities are empowered to appropriate the corresponding items in their respective budgets.

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ARTICLE 15. The Mining-Energy Planning Unit will have a director who will have the quality of the public employee and will earn the remuneration determined by the National Government.

The director must meet the following conditions:

a) Being Colombian and a citizen in exercise;

b) Poseer university degree in engineering, economics or business administration and graduate studies;

c) Contar with a recognized preparation and technical experience and have held positions of responsibility in public or private entities in the national or international energy sector, for a period exceeding six (6) years.

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ARTICLE 16. The Miner-Energy Planning Unit will have the following functions among others:

a) Establish the energy requirements of the country's population and economic agents, based on demand projections that take into account the most likely evolution of demographic and economic variables; and of energy resource prices;

b) Establish how to meet these requirements, taking into account existing, conventional and unconventional energy resources, according to economic, social, technological and environmental criteria;

c) Develop and update the National Energy Plan and, the Plan of Expansion of the electricity sector in accordance with the National Development Plan Project.

The first National Energy Plan must be submitted within six (6) months of the duration of this Law;

d) Assess the economic and social convenience of the development of unconventional energy sources and uses, as well as the development of nuclear energy for peaceful uses;

e) Evaluate the economic and social profitability of mining and energy resource exports;

f) Perform diagnostics that enable the formulation of energy sector plans and programs;

g) Establish and operate the mechanisms and procedures to assess the supply and demand for energy minerals, hydrocarbons and energy and determine priorities to meet such requirements, compliance with national convenience;

h) Recommend the Minister of Mines and Energy, policies and strategies for the development of the energy sector;

i) Provide the technical planning and advisory services and charge for them;

j) Set up a priority energy saving and optimization program;

k) The others that point you to this Law and Decree 2119 of 1992 *.

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ARTICLE 17. The Ministry of Mines and Energy will have a permanent consultative body, made up of representatives of companies in the energy sector, national and regional order and users who It must first conceptualize the adoption of the plans, programs and development projects of each subsector and propose the appropriate actions to ensure that these are carried out in accordance with the provisions of the National Energy Plan. Empower the National Government to establish the number and mechanisms for the selection of the representatives of the users.

PARAGRAFO. The Mining-Energy Planning Unit will develop the National Interconnected System Expansion Plans and consult the permanent advisory body.

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ARTICLE 18. GENERATION OF ELECTRICAL ENERGY IN THE NATIONAL INTERCONNECTED SYSTEM. 67 of Law 1151 of 2007. The new text is as follows: > Compete the Ministry of Mines and Energy to define the plans for the expansion of the generation and the interconnection network and to set criteria to guide the planning of transmission and distribution.

The generation and interconnection plans will be of reference and will seek to optimize the balance of energy resources for the satisfaction of the national electricity demand, in accordance with the National Development Plan and the Plan National Energy.

PARAGRAFO 1o. The Energy and Gas Regulatory Commission, CREG, will develop the regulatory framework that incentivises investment in the expansion of the generation and transmission capacity of the interconnected system by Strategic investors. In accordance with the above, CREG will establish schemes that promote the entry of new generation and transmission capacity.

PARAGRAFO 2o. The National Government will take the necessary measures to guarantee the supply and reliability of the country's electricity system and will only assume the risks inherent in the construction and exploitation of the generation and transmission projects when the incorporation of strategic investors is not achieved. The above, as long as the projects are financially and fiscally sustainable according to the medium-term fiscal framework.

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ARTICLE 19. The National Government shall ensure the development and implementation of pre-investment studies associated with electricity generation projects, in accordance with the priorities set out in the Plan of Generation Expansion, for which the Minero-Energy Planning Unit will promote the realization of such studies.

PARAGRAFO 1o. The resources required to undertake pre-investment studies in electricity generation projects will come from the collections set out in the Single Paragraph of the article 14 that are assigned for that purpose.

PARAGRAFO 2o. When official companies make investments in studies for electrical projects that subsequently benefit other entities that did not participate in those investments, the latter will have to pay the cost to updated values in proportion to their participation. The Energy and Gas Regulatory Commission will regulate the matter.

CHAPTER IV.  

OF THE REGIONS.

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ARTICLE 20. In relation to the energy sector, the role of regulation by the State will have the basic objective of ensuring adequate service delivery through the efficient use of the different energy resources, for the benefit of the user in terms of quality, opportunity and cost of the service. To achieve this goal, it will promote competition, create and

will preserve the conditions that make it possible.

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ARTICLE 21. The Energy Regulatory Commission, created by Article 10 of Decree 2119 of 1992, will be called the Energy and Gas Regulatory Commission and will be organized as the Special Administrative Unit of the Ministry of Mines and Energy, which will be integrated as follows:

a) By the Minister of Mines and Energy, who will chair it;

b) By the Minister of Finance and Public Credit;

c) By the Director of the National Planning Department;

d) For five (5) experts in energy issues of exclusive dedication, appointed by the President of the Republic for periods of four (4) years.

Once the Superintendence of Public Service Services created by article 370 of the Political Constitution is organized, the Superintendent will attend his meetings with voice but without vote.

The Commission shall have the professional, technical and administrative staff necessary for the performance of its tasks, in accordance with what it itself determines and shall have special arrangements in respect of recruitment, administration of staff, salaries and benefits and will enjoy budgetary autonomy.

The Commission will manage its budgetary resources and will operate through the contract of commercial trust that the Ministry of Mines and Energy will hold with a fiduciary entity, which will be subject to the rules of private law. These provisions shall also govern acts which are carried out in the development of the respective contract of trust.

Experts shall have the quality determined by the President of the Republic and shall bear the remuneration determined by the President.

The Energy and Gas Regulatory Commission will issue its rules of procedure, which will be approved by the National Government, in which the procedure for the appointment of the Executive Director of the exclusive dedication experts will be indicated.

PARAGRAFO 1o. Experts must meet the following conditions:

a) Being Colombian and a citizen in exercise;

b) Having a university degree in engineering, economics, business administration or the like and graduate studies; and

c) Contar with a recognized preparation and technical experience, preferably in the energy area and have held positions of responsibility in public or private entities of the Minero-energetic, national or international sector, for a period more than six (6) years; or having served as a consultant or adviser for an equal or higher period.

PARAGRAFO 2o. The first appointment of experts will be done as follows: two (2) experts for a period of three (3) years and three (3) for a period of four (4) years. Experts may be re-elected.

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ARTICLE 22. The costs of the regulatory service shall be covered by all the entities subject to its regulation and the total amount of the contribution may not exceed 1% of the value of the operation excluding operating expenses, electricity purchases, fuel purchases, and tolls, when there is a place to do so, of the regulated entity, incurred the year prior to the year in which the charge is made, according to the The financial services provided by the Superintendency of Public Services and the Commission on the Energy and Gas.

The amount of the contribution to be paid to each entity will be settled by the Energy and Gas Regulatory Commission. The contributions shall be paid within the first thirty (30) calendar days following the respective collection, in the financial institution or entities indicated to receive this collection.

PARAGRAFO. The Energy and Gas Regulatory Commission will annually fix its budget, which must be approved by the National Government.

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ARTICLE 23. For compliance with the objective defined in article 20 of this law, the Energy and Gas Regulatory Commission in relation to the Electricity service shall have the following general functions:

a) Create the conditions to ensure the availability of an efficient energy supply, capable of supplying demand under social, economic, environmental and financial viability criteria, promoting and preserving the competence.

In the electricity sector, the efficient offer will take into account the capacity of backup generation, which will be valued by the Energy and Gas Regulatory Commission, according to the criteria established by the Energy Mining Planning Unit in the expansion plan;

b) Determine the conditions for the gradual release of the market into free competition;

c) Define the methodology for calculating fees for access and use of power grids, and charges for dispatch and coordination services provided by regional dispatch centers and the center National of dispatch;

d) Approve the fees to be paid for access to and use of power grids and charges for dispatch and coordination services provided by the regional office centers and National Center of Dispatch;

e) Define the methodology for calculating the rates applicable to regulated electricity service users;

f) Set the electricity sales rates for the regulated end users. This power may be delegated to the distribution companies, in compliance with their marketing functions under the regulated freedom regime;

g) Define, based on technical criteria, the conditions to be met by regulated and unregulated users of the electricity service;

(h) Define the factors that should be applied to the tariffs of each consumer sector to cover the allowances for the subsistence consumption of lower income users. These factors should take into account the payment capacity of users of lower income, the costs of providing the service and the consumption of subsistence to be established according to the regions;

i) Establish the Operation Regulation to plan and coordinate the operation of the National Interconnected System, having heard the concepts of the National Operation Council;

j) Set guidelines for the design, normalization, and efficient use of electrical equipment and appliances;

k) Interpret the definitions referred to in Article 11 of this Law;

l) Precise the scope of the powers relating to the granting of the concession contract;

m) Knowing the rates of unregulated users;

n) Define and make operational the technical criteria of quality, reliability, and security of the power service;

o) Reglamenting the provision of electrical service in subnormal neighborhoods and rural areas of lower development;

p) Define by arbitration the conflicts that arise between the different economic agents involved in the activities of the sector in terms of interpretation of the operational and commercial agreements;

q) Vellar for the protection of consumer rights, especially low-income strata;

r) The functions provided for in Article 11 of Decree 2119 of 1992, which will continue in force as soon as it is contrary to the provisions of this article, and the others that point to the relevant legal norms.

CHAPTER V.

OF ELECTRICITY GENERATION.

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ARTICLE 24. The construction of generating plants, with their respective lines of connection to interconnection and transmission networks, is permitted to all economic operators.

PARAGRAFO. For multi-purpose generation projects from which benefits are derived for other sectors of the economy, the National Government will establish mechanisms for these sectors to contribute to the financing of the project, in the measure of the benefits obtained.

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ARTICLE 25. The private or public economic agents that are part of the national interconnected system must comply with the Operation Regulation and with the agreements adopted for the operation of the system. Failure to comply with these rules or agreements will result in the penalties established by the Energy and Gas Regulatory Commission or the respective authority according to their competence.

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ARTICLE 26. Public and private entities with available electrical energy will be able to sell it, subject to the Operating Regulation, to generating companies, to distributors or to large consumers. rates freely agreed between the parties.

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ARTICLE 27. Except in emergency situations, thermal generation companies that sell electricity through the National Interconnected System, must make contracts to guarantee, to long term, the supply of fuel in a timely manner and at economic prices.

For the purchase of coal for thermal generation, the tenders submitted by organizations of an associative or cooperative nature integrated by operators registered in the Mining Registry will be selected in preference. National, as well as those presented by the independent coal producers who have current Mining Registry and who are classified in the range of small mining.

CHAPTER VI.  

OF THE INTERCONNECTION.

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ARTICLE 28. Companies that own lines, substations, and equipment identified as elements of the national interconnection network will maintain ownership of the same, but must operate them with subject to the Operation Regulation and the agreements adopted by the National Operation Council.

Failure to comply with the rules of operation of the national interconnection network, the omission of the obligation to provide for the maintenance of the lines, substations and associated equipment and any conduct that is contrary to the principles governing the activities related to the electricity service, shall give rise to the penalties laid down by the competent authority.

PARAGRAFO. Notwithstanding the provisions of this Article, companies that own elements of the national interconnection network decide to dispose of such assets, may do so.

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ARTICLE 29. The connection to the national network of interconnection of a regional transmission network, a distribution network, a generation plant or a user imposes the following obligations:

a) Meet the technical standards dictated by the Ministry of Mines and Energy;

b) Operate your own system subject to the rules issued by the Energy and Gas Regulatory Commission and the agreements of the National Operation Council, and

c) Run the required works for connection of your installations and equipment to the national interconnection network.

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ARTICLE 30. The companies that own networks of interconnection, transmission and distribution will allow the connection and access of electricity companies, other generating agents and users who request, prior to compliance with the rules governing the service and the payment of the corresponding remuneration.

These companies will be able to provide the servitude service for telecommunications.

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ARTICLE 31. The companies that own generation plants can be linked to the interconnection networks, using two modes:

a) Free mode: by which the generating company is not required to supply a fixed amount of energy, subject accordingly, to market demand, but operating in a pricing and pricing system determined by free market play;

b) Regulated mode: by which the generating firm commits to an energy trading company or a non-regulated user to supply fixed amounts of electrical energy for a certain period and in a preset schedule. To this end, it is essential to enter into guaranteed energy purchase contracts.

PARAGRAFO. In both modalities the owners of the power plants must comply with the rules of operation of the interconnected system and the operating agreements.

In case of breach of the energy supply commitments, creditors shall be liable to the penalties provided for in the respective contracts, without prejudice to any other civil or criminal implications that may arise.

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ARTICLE 32. Authorize the National Government to modify the social object of Interconnection Eléctrica S.A., which will henceforth be the service of the operation and maintenance of the network of its property, the expansion of the national interconnection network, the planning and coordination of the operation of the national interconnected system and the provision of technical services in activities related to its social object.

Authorizase, likewise, to the National Government to organize from the generation assets that currently owns Interconnection Electrica S.A., a new company, that will be constituted in a society of mixed economy, linked to the Ministry of Mines and Energy, dedicated to the generation of electricity. This new company will have wealth, administrative and budgetary autonomy.

PARAGRAFO 1o. The National Dispatch Center will be an internal unit of the company in charge of the national interconnection service, constituted with the goods currently owned by Interconnection Electrica S.A., intended for the planning, supervision and control of the operation and dispatch of the resources in the national interconnected system, as well as the others assigned to it by the National Government.

PARAGRAFO 2o. The company in charge of the national interconnection service will have own resources arising from the provision of the services of the office, the transport of electricity, the charges for the access and the use of their interconnection networks and the technical services related to their function.

PARAGRAFO 3o. The company in charge of the national interconnection service, will not be able to participate in the generation, marketing and distribution of electricity.

PARAGRAFO 4o. The staff of the current ISA plant will be relocated to each of the two companies that originated, in accordance with their current functions, respecting the acquired rights of the workers.

PARAGRAFO 5o. When the expansion of the National Interconnection Network is to be done across lines in which the characteristics of the national interconnection network are combined with those of the regional network of transmission, the Commission on Energy and Gas Regulation, will decide who executes such expansion in case of conflict.

PARAGRAFO 6o. The authorization given to the National Government to modify the social object of Interconnection Electrica S.A., and to organize from its generation assets a new company, will be used without prejudice to the commitments acquired by the Nation with the companies of the electrical sector, prior to the validity of this Law, when it acquired the participation of those companies in Interconnection Electrica S.A.

CHAPTER VII.  

NATIONAL INTERCONNECTED SYSTEM OPERATION.

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ARTICLE 33. The operation of the interconnected system will be done by ensuring reliable, reliable, and service-quality demand through the use of the resources available in an economic way. and convenient for the country.

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ARTICLE 34. The National Dispatch Center will have the following specific functions, which should be performed in accordance with the provisions of the Operation Regulation and the agreements of the National Council of Operation:

a) Plan the operation of the national system's generation, interconnection and transmission resources, aiming for a safe, reliable and economical operation;

b) Exercise coordination, supervision, control and analysis of the operation of generation, interconnection and transmission resources including international interconnections;

c) Determine the value of exchanges resulting from the operation of the energy resources of the national interconnected system;

d) Coordinate the programming of the maintenance of generation plants and the interconnection and transmission lines of the national electricity grid;

e) To report periodically to the National Operation Council on the real and expected operation of the resources of the national interconnected system and the risks to reliably meet demand;

f) Report violations or conduct contrary to the Rules of Procedure;

g) The other attributions entrusted to you by this Law.

PARAGRAFO. The National Dispatch Center will have a Director who must meet the same conditions as the expert who is dealing with the article 15.

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ARTICLE 35. The National Dispatch Center will coordinate its activities with the Regional Offices of the Office, with the generation companies, with the companies that own the interconnection networks and transmission and with distribution companies.

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ARTICLE 36. Create the National Operation Council that will have as the main function to agree on the technical aspects to ensure that the integrated operation of the national interconnected system is safe, economic and reliable, and be the implementing body of the operating regulation.

The decisions of the National Operation Council may be challenged before the Energy and Gas Regulatory Commission.

The National Operation Council will have a Technical Secretary whose requirements will be the same as the one required by the expert who is dealing with article 15, who will participate in the Council meetings with voice and without vote.

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ARTICLE 37. The National Operation Council shall be made up of a representative of each of the generation companies, connected to the national interconnected system with an installed capacity more than five percent (5%) of the national total, by two representatives of the national, departmental and municipal generation companies connected to the national interconnected system, which have an installed capacity of one to 1% (1%) and 5% (5%) of the national total, by a representative of the companies owners of the national interconnection network with a vote only on matters relating to the interconnection, by a representative of the other generating undertakings connected to the national interconnected system, by the Director of the National Centre of Despatch, who will have a voice but will not have a vote, and two representatives of the distribution companies that do not carry out priority activities, being at least one of them that has the largest distribution market. The Energy and Gas Regulatory Commission shall establish the periodicity of its meetings.

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ARTICLE 38. Electricity generating companies, distributors and those operating interconnection and transmission networks shall have the obligation to supply and the right to receive in a timely and faithful manner the information required for the planning and operation of the national interconnected system and for the marketing of electricity. The information will be channeled through the National Dispatch Center and the Regional Offices of Dispatch, as appropriate.

CHAPTER VIII.  

OF NETWORKS ACCESS AND USAGE FEES.

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ARTICLE 39. The charges associated with the access and use of the networks of the national interconnected system will cover, under optimal management conditions, the investment costs of interconnection networks, transmission and distribution, depending on the different levels of tension, including the cost of capital opportunity, administration, operation and maintenance, under appropriate conditions of quality and reliability and sustainable development. These charges will take into account financial viability criteria.

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ARTICLE 40. The fees for access and use of national interconnected system networks must include the following charges:

a) A connection charge that will cover the costs of the user's connection to the pipeline network;

b) A fixed charge associated with interconnection services;

c) A variable charge, associated with the transport services by the pipeline network;

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ARTICLE 41. The Energy and Gas Regulatory Commission will define the methodology of the calculation and approve the fees for the access and use of the networks of the national interconnected system and the procedure for making cash your payment.

PARAGRAFO 1o. The network access rates will be calculated by considering among other factors, the location of the load centers within the regional networks and the associated distribution systems, the actual costs of the transmission or distribution system that is required to meet each load center and the environmental conditions that may affect the investment and maintenance.

PARAGRAFO 2o. The Energy and Gas Regulatory Commission will have a period of six (6) months counted from the time of this Law, to define and approve, in accordance with the provisions of the paragraph above, the methodology for calculating the rates for access and use of the networks and to define the procedure for making payments for this concept effective. If the Commission does not define and approve them within the time limit, the companies may charge the fees and charges which they have submitted for their consideration, while the Commission on Energy and Gas Regulation makes the methodology and procedures known. respective.

CHAPTER IX.  

THE ECONOMIC AND TARIFF REGIME FOR ELECTRICITY SALES.

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