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Year II-Nº 418
Quito, Friday 16 January 2015
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ING. HUGO DEL POZO BARREZUETA DIRECTOR
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At the service of the country from the July 1, 1895
THIRD SUPPLEMENT
SERVICE
SERVICE
ENERGY
ENERGY
ICA
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ECUADOR Republic
NATIONAL ASSEMBLY
Of. No. SAN-2015 -0070
Quito, 14 January, 2015
Engineer Hugo Del Pozo Barrezueta Director of the Ofi cial Registry
In his office:
Of my considerations:
The National Assembly, in accordance with the He also discussed and approved the DRAFT ORGANIC LAW OF THE PUBLIC ELECTRIC ENERGY SERVICE.
In session of January 8, 2015, the Plenary Assembly of the National Assembly met and gave a statement on the partial objection presented by the Constitutional President of the Republic.
Article 138 of the Constitution of the Republic of Ecuador and Article 64 of the Organic Law of the Legislative Function, accompanied by the text of the ORGANIC LAW OF THE PUBLIC ELECTRIC ENERGY SERVICE, to be published in the Register Cial.
Atently,
f.) DRA. LIBYA RIVAS ORDONEZ, General Secretary.
REPUBLIC OF ECUADOR
NATIONAL ASSEMBLY
CERTIFICATION
As General Secretariat of the National Assembly, I allow myself CERTIFY that the National Assembly discussed and approved the "DRAFT ORGANIC LAW OF THE PUBLIC ELECTRIC ENERGY SERVICE", in the first debate on May 29, 2014; in the second debate on November 18, 2014, and gave an opinion on the Partial objection of the Constitutional President of the Republic on 08 January 2015.
Quito, January 12, 2015
f.) DRA. LIBYA RIVAS ORDONEZ, General Secretariat.
REPUBLIC OF ECUADOR
NATIONAL ASSEMBLY
THE PLENO
CONSIDERING:
What, the Constituent Assembly in session of May 13, 2008 issued the Constituent Mandate No. 9, enacted in the Case No 339 of 17 May 2008, the purpose of which was the adoption of measures to address the lack of investment in the electricity and telecommunications sectors to meet the needs of infrastructure, which is the subject of date, has fulfilled its purpose, dynamizing them with the injection of state resources;
the Constituent Assembly in session of July 23, 2008 issued the Constituent Mandate No. 15, promulgated in the Supplement of the Register Ofi cial No. 393 of July 31, 2008, through which the deep structural changes of the field were arranged This is the only way to reduce the cost of electricity and the single tariff, the elimination of the concept of marginal costs. for the calculation of the generation costs, the state contribution for the investment components for the expansion in the costs of distribution and transmission and the extinction of obligations of electricity companies for electricity transactions, the fulfillment of which has allowed the execution of new electric projects throughout the country, the economic sustainability and the overall development of the Ecuadorian electricity sector;
That, the Constitution of the Republic of Ecuador, published in the Official Register No 449 of 20 October 2008, orders in Article 85 that the formulation, implementation, evaluation and control of public policies and the provision of public goods and services To guarantee the rights recognized by the Constitution, they will be directed to make good living and will be formulated from the principle of solidarity;
What, the numeral 9 of article 11 of the Constitution of the Republic of Ecuador (a) precept that the highest duty of the State is to respect and enforce the rights guaranteed in the Constitution, with the obligation of the State, its delegates, dealers, and any person acting in the exercise of a public authority, to (i) to make good the violations of the rights of individuals by reason of the lack or defence of the provision of public services, or by the actions or omissions of their public servants in the performance of their posts, and the State must proceed immediately to exercise the right of repetition against the persons responsible for the damage produced, without prejudice to the civil, criminal and administrative responsibilities to which it took place;
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That, Article 14 of the Constitution of the Republic of Ecuador recognizes the right of the population to live in a healthy and ecologically balanced, ensuring sustainability and good living, the sumak kawsay and declaring public interest the preservation of the environment, the conservation of ecosystems, biodiversity and the integrity of the country's genetic heritage, the prevention of environmental damage and the recovery of degraded natural spaces;
What, Article 15 The Constitution of the Republic of Ecuador states that it is up to the State to promote, in the public and private sector, the use of environmentally clean technologies and alternative, non-polluting and low-impact energies, as well as the energy sovereignty will not be achieved to the detriment of food sovereignty, nor will it affect the right to water;
That, Article 287 of the Constitution of the Republic of Ecuador points out that any rule that creates a financial obligation Public resources shall establish the source of the relevant funding. Only public law institutions will be able to finance themselves with special rates and contributions established by law;
That, Article 301 of the Constitution of the Republic of Ecuador states that special rates and contributions shall be created and regulated in accordance with the law;
That, the Constitution of the Republic of Ecuador establishes in Article 133 (2) that they shall be issued with the character of organic, the laws governing the exercise of rights and Constitutional guarantees, therefore, being that the public and strategic electric power service is a right and a constitutional guarantee, this law must have the hierarchy of organic;
That, article 313 of the Constitution of the Republic of Ecuador, states that the State reserves the right to administer, regulate, control and manage strategic sectors in accordance with the principles of environmental sustainability, precaution, prevention and science and that energy is considered a strategic sector in all its forms;
What, Article 314 of the Constitution of the Republic of Ecuador establishes that the State will be responsible for the provision, between Others, from the public service electric power;
That, article 315 of the Constitution of the Republic of Ecuador indicates that the State may constitute public enterprises for the management of strategic sectors, the provision of services public, the sustainable use of natural resources or public goods and the development of other economic activities;
That, Article 316 of the Constitution of the Republic of Ecuador indicates that the State may delegate the participation in the strategic sectors and public services to companies
mixed in which It will have a majority shareholding and may exceptionally delegate to the private initiative and the popular and solidarity economy, the exercise of these activities, in cases established by law;
That, Article 395 of the Constitution of the Republic of Ecuador points outthe must guarantee a sustainable development model, environmentally balanced and respectful of cultural diversity, that conserve biodiversity and the natural regeneration capacity of the ecosystems, and ensure the satisfaction of the needs of present and future generations;
That, Article 413 of the Constitution of the Republic of Ecuador states that the State should promote energy efficiency, the development and use of environmentally clean and healthy practices and technologies, as well as renewable energy, diversified, low impact;
That, the increase in the demand for electricity as a result of the growth of the population and of the economy, constitutes not only a great challenge, but requires the use of new sources of energy supply and public and citizen consumption behaviors, commensurate with the magnitude of the challenge;
That it is imperative to build an economically and ecologically balanced matrix of electricity generation, increasing the participation of clean and renewable energies such as wind, biomass, biogas, photovoltaics, geothermal, tidal and hydroelectric, decreasing the ineffi tient thermal generation that uses fossil fuels;
That, the modernization of the electrical grids must consider regulatory aspects, networks of transport and distribution of energy, networks of communication, distributed generation, energy storage, measurement intelligent, distributed control, active demand management and opportunities to provide new products and services;
What, it is the State's obligation to promote the development of economic activities through a legal and institutional order to promote and encourage the participation of the different social, economic and business sectors;
That, it is the State's duty to provide the public electric power service as a tool to promote the development of Country industries;
What, it is imperative to have a new legal framework of the sector According to the provisions of the Constitution of the Republic of Ecuador, the national reality, updating its institutional structure; and,
In the exercise of its constitutional powers, it issues the following:
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ORGANIC LAW OF THE PUBLIC ELECTRICAL ENERGY SERVICE
Title I
FUNDAMENTAL provisions
Article 1.-Object and scope of law.- This law aims to ensure that the public service of electrical energy complies with the constitutional principles of mandatory, generality, uniformity, responsibility, universality, accessibility, regularity, continuity, quality, environmental sustainability, precaution, prevention and science, for which, it is up to this instrument to regulate the exercise of the responsibility of the State of planning, to execute, to regulate, to control and to administer the public service of electrical energy.
This law regulates the participation of the public and private sectors, in activities related to the public service of electrical energy, as well as the promotion and execution of plans and projects with sources of renewable energies, and the establishment of energy efficiency mechanisms.
Article 2.-Objectives -are objectives specific to the present law:
1. To comply with the provision of the public service of electrical energy to the consumer or user, through the activities of: generation, transmission, distribution and marketing, import and export of electrical energy;
2. To provide consumers or financial users with a public service of high quality electrical energy, safety and security; as well as the general public lighting service that requires it according to the specific regulation;
3. Protect the rights of consumers or financial users of the public electric power service;
4. Ensure the governance of the sector through an appropriate institutional structure, a clear definition of functions and a system of accountability;
5. To develop mechanisms for promotion by the State, which will encourage the technical and economic use of energy resources, with an emphasis on renewable sources. The promotion of biomass shall be based on the source of solid waste.
6. Formulate energy efficiency policies to be met by natural and legal persons who use energy or provide related goods and services, favoring environmental protection;
7. Design mechanisms to ensure the economic sustainability and financial sustainability of the electricity sector;
8. To ensure the equality and widespread use of services and facilities for transmission and distribution; and,
9. Develop rural energization.
Article 3.-Defi ntions.-For the purposes of application of law, the following general principles shall be taken into account:
1. Affecting to the Public Service: Condition in which the necessary goods and facilities are located to meet the object of the public electric power utility. They may not be withdrawn without the prior authorization. Included within this condition are the goods and facilities belonging to the autogenerators.
2. General Public Lighting: It is the lighting of public roads, for the transit of persons and/or vehicles. Excludes the lighting of common areas of real estate units declared as horizontal property, ornamental public lighting and intercoming.
3. Public lighting intervened: It is the illumination of tracks that, due to specific plans or requirements of the autonomous decentralized governments, they provide for the levels of illumination established by regulation, and/or require a constructive infrastructure other than standards established for general public lighting.
4. ornamental public lighting: It is the illumination of areas such as parks, squares, churches, monuments and the like, which gives rise to the levels established by regulation for general public lighting, since they obey aesthetic criteria determined by the relevant decentralised autonomous government, or by the competent state body.
5. Autogenerator: A legal person engaged in a productive or commercial activity, whose electrical generation is destined to supply its demand, possibly producing surplus generation that can be made available of the demand.
6. Consumer or final user: natural or legal person who benefits from the provision of the public electricity service, either as the owner of the building where it is provided, or as a direct recipient of the service.
7. Electrical Company: Legal person governed by public or private law, whose enabling title empowers it to perform activities of generation, transmission, distribution and marketing, import or export of electric power and the service of general public lighting.
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8. Electrical Energy: The flow of electrons produced based on primary energy sources, by electric generators, transported and distributed to the consumer or the end user's facilities.
9. Renewables: These are from sources that do not decrease by their use: hydraulics, wind, solar, geothermal, biomass, tidal, nuclear and others.
10. Non-conventional renewable energy: It is considered as unconventional renewable energy sources: solar, wind, geothermal, biomass, tidal, hydroelectric capacity, under the terms and conditions set out in the regulations, and others that will be made to be in the respective regulation.
11. Great consumer: Natural or legal person, whose consumer characteristics were supported by the Electricity Regulation and Control Agency-ARCONEL-through the respective regulation, they empower him to freely agree with a generator or private autogenerator, the purchase of the electrical energy for its supply.
12. Tariff specifications: Document issued by ARCONEL, which contains the tariff structure to be applied to consumers or financial users, and the values corresponding to that structure, for the public service of electrical energy and the general public lighting service.
13. Public electric power service: Comprises the activities of: generation, transmission, distribution and marketing, general public lighting, import and export of electrical energy.
14. National Interconnected System (SNI): It is the system integrated by the elements of the electrical system connected to each other, which allows the production and transfer of electrical energy between generation centers, consumption centers and nodes International interconnection, directed to the provision of the public electric power service, does not include the distribution of electricity.
15. Suspension of service: It is the power of the power utility to interrupt the provision of the public service of electrical power to the consumer or the end user, for lack of payment of the invoiced consumption, by force majeure or fortuitous case; or Scheduled maintenance reasons.
16. Enabling Title: Administrative act by which the State, delegates or authorizes a legal person, public or private, consortia or associations, to carry out activities related to the public service of electrical energy.
Article 4.-Rights of consumers or financial users.-The following are the rights of consumers or users
1
To receive the public electricity service in accordance with the constitutional principles of efficiency, responsibility, continuity, quality and equitable price;2. Receive the commercial invoice according to your consumption;
3. To claim the utility in case of non-compliance with the received public service, or the invoiced values; and, receive a timely response;
4. Be timely informed by any suitable means of work or actions that may lead to a suspension of electrical service;
5. Be timely informed about the rates to be applied to your consumption;
6. To receive equal, non-discriminatory or abusive treatment in the provision of the public electric power service;
7. To have public lighting on public roads, according to the regulation that the Agency for Regulation and Control of Electricity ARCONEL will issue for the effect;
8. Participate in public hearings convened by the Ministry of Electricity and Renewable Energy or the Agency for Regulation and Control of Electricity ARCONEL; and,
9. Be compensated for damages caused by causes imputable to the quality of the public utility of electric power supplied by the electrical utility of distribution and marketing.
Article 5.-Obligations of the consumers or financial users.-The following are the obligations of consumers or users
1. Pay the electricity bill in a timely manner;
2. Allow access to the authorized personnel of the electrical company and control bodies to verify their measurement systems and their facilities;
3. Use electrical energy in an efficient way;
4. Take care of electrical facilities that allow you to have electricity supply and report to those who misuse them;
5. Avoid any risk that may affect your health and your life, as well as that of others; and,
6. Comply with the conditions established by the electric utility, based on the law, regulations and regulations, regarding the use of electric power and the supply of public service.
Article 6.-Complementary rules.- applicable in electrical matter the laws that regulate
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the use and use of natural resources, citizen participation, environmental protection, and other positive legislation Ecuador applicable to the electrical sector, in what is not expressly regulated in this law.
Title II
RESPONSIBILITIES AND PRIVILEGES OF THE STATE
Article 7.-Duty of the State.- Private responsibility of the State, through the Central Government, to meet the needs of the country's general public electricity and lighting service, through the efficient use of its resources, in accordance with the National Development Plan, the Master Plan for Electricity, and the other sectoral plans that
provision of the public electricity and general public electricity service will be carried out by the Central Government, through public companies or joint ventures in which it has a majority shareholding, which may be exceptionally delegate to the private initiative; in all cases, it is necessary to (i) the decision-making process for the establishment, construction and installation of electrical systems for the delivery of energy to the financial users, as well as the provision of the relevant enabling title.
It is for the Central Government to take decisions on the planning, construction and installation of electrical systems for the delivery of energy as well as the maintenance, operation and sustainable development of the electricity sector, in order to meet the needs of the public electric power service.
Article 8.-Rectory of public policies for the sector - definition, definition and direction of the public policies and public services to ensure the rights recognised by the Constitution, for participants and consumers or financial users.
For such purposes, the Executive Function shall act through the Ministry of Electricity and Renewable Energy and other organisms that are determined in this law.
Title III
ELECTRICAL SECTOR STRUCTURE
Chapter I
STRUCTURE
Article 9.-Structure institutional.- The electrical sector will be structured in the institutional field, next way:
1. Ministry of Electricity and Renewable Energy, MEER;
2. Electricity Regulation and Control Agency, ARCONEL;
3. National Electricity Operator, CENACE; and,
4. Specialized Institutes.
Article 10.-Business structure.- The electrical sector, in the business field, will act through:
a) Public enterprises;
b) Mixed economy enterprises;
c) Private companies;
d) Consorcios o associations;
e) Popular and solidarity economy enterprises.
Chapter II
MINISTRY OF ELECTRICITY AND RENEWABLE ENERGY-MEER
Article 11.-Legal Nature.- This is the first time. It is up to him to pursue and implement policies; to assess that regulation and control are met to structure an efficient public service of electrical energy; the identification and monitoring of project implementation; -to assess the management of the electricity sector; the promotion and implementation of renewable energy plans and programmes; the mechanisms for achieving energy efficiency, in accordance with the provisions of the Constitution and the law.
Article 12.-Duties and duties.- They are the powers and duties of the Ministry of Electricity and Renewable Energy in electrical matter, renewable energy and energy efficiency:
1. To exercise the representation of the State to national and international agencies and to agree on guidelines for its normative harmonization;
2. Dictate policies and direct processes for their application;
3. Develop the Master Plan of Electricity (PME), the National Plan of Energy Science (PLANEE);
4. Monitor and evaluate the implementation of policies, plans, programs and projects for development and management within the scope of their competence;
5. Propose to the President of the Republic draft laws and regulations;
6. Establish parameters and indicators for the monitoring and evaluation of the management of the entities and companies in the sector of their competence;
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7. Fix the power import and export policy;
8. Promote Regional Electrical Integration;
9. Promote scientific and scientific research in the field of electricity, renewable energy and energy efficiency;
10. Establish policies for the training of human talent in the Electrical Sector;
11. Grant and extinguish enabling titles for the exercise of electrical sector activities;
12. To preside through the Minister, or his delegate, the Board of the Agency for Regulation and Control of Electricity ARCONEL and to coordinate the control of the management of that entity;
13. Declare of public interest or of social interest, in accordance with the law, with immediate expropriation and occupation, the buildings that are required for the development of the sector; to constitute forced and necessary easements for the construction and operation of related works, in the field of their competencies;
14. Organize the technical-administrative dependencies deemed necessary for the performance of its function;
15. Keep the inventory of the country's energy resources up to date with electricity production;
16. Approve the annual operating and investment budget of the NATIONAL ELECTRICITY OPERATOR, CENACE;
17. Approve the annual activity report of the Executive Director of the NATIONAL ELECTRICITY OPERATOR, CENACE; and,
18. The others established in the laws and executive decrees, as well as in the General Regulation to this law.
Article 13.-Of the planning.-The Ministry of and Renewable Energy will be responsible for the planning of the electricity, renewable energy and energy science, in line with the provisions of the Constitution of the Republic, the National Development Plan and the national policy issued by the President of the Republic, the following instruments, which will be mandatory for the public sector and indicative for private sector:
1. The Master Plan for Electricity, PME, will be prepared by the Ministry of Electricity and Renewable Energy, in coordination with the entities and companies of the electrical sector.
2. The National Plan of Energy Science, PLANEE, will be prepared by the Ministry of Electricity and Renewable Energy, in coordination with the Secretaries of State and Institutions whose functions are related to the use of energies.
The mechanisms for coordinating the instruments, in relation to the electrical sector, will be supported by the Ministry of Electricity and Renewable Energy.
Chapter III
AGENCY FOR REGULATION AND CONTROL OF ELECTRICITY-ARCONEL
Article 14.-Legal nature.- The Agency Regulation and Control of Electricity ARCONEL, is the administrative technical agency responsible for the exercise of the state authority to regulate and control the activities related to the public service of electric power and the service of General public lighting, taking into account the interests of the consumer or the end user.
The Agency for Regulation and Control of Electricity is an institution of public law, with legal personality, administrative autonomy, technical, The Ministry of Electricity and Renewable Energy is attached to the Ministry of Electricity and Renewable Energy.
The Budget of the Electricity Regulation and Control Agency, ARCONEL, will be financed by the resources from the General Budget of the State.
The Agency for Regulation and Control of Electricity ARCONEL will not exercise business activities in the electrical sector.
Article 15.-Duties and duties.- The privileges and duties of the ARCONEL Electricity Regulation and Control Agency are:
1. Regular technical and economic aspects of the activities related to the public electric power service and the general public lighting service;
2. To lay down the regulations to which electrical undertakings must comply; the National Electricity Operator (CENACE) and consumers or financial users; whether they are public or private, observing the policies of energy science, which are required to provide the required information;
3. To control electric utilities, as regards compliance with the regulations and the constant obligations in the relevant enabling titles, and other aspects that the Ministry of Electricity and Renewable Energy defi na;
4. Coordinate with the National Environmental Authority mechanisms for compliance with compliance
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of the legal regulations, by electric utilities, related to environmental protection and environmental obligations, determined in the enabling titles;
5. Carry out technical, economic and financial studies and analyses for the elaboration of regulations, tariff specifications and control actions;
6. Establish the tariff specifications for the public electric power service and for the general public lighting service;
7. Establish by resolution of the Directory and upon duly substantiated request of the electrical distribution companies, special contributions of improvement to the consumers or the financial users of the service of a certain geographical area (a) by works relating to the electrical distribution and lighting systems of that area, which are not included in the Master Plan of Electricity and which benefit these consumers or the financial users of the service. For this purpose, the electrical undertakings which carry out the works shall establish the areas for the purpose of the work, with the owners of the buildings of those areas having to pay the special contribution.
The value of the works executed shall be divided in proportion between the owners of the real estate located in the area of employment and may be charged on invoices or electric service plates for up to 60 months;
8. Prepare reports and studies that are required by the governing entity;
9. Implement, operate and maintain the single system of statistical information in the electrical sector;
10. Exercise, in accordance with the law, the co-active jurisdiction in all cases of its jurisdiction;
11. To deal with, investigate and resolve complaints and disputes arising out of the members of the electricity sector, within the scope of their jurisdiction, in accordance with the regulation to be issued for the purpose, the resolutions of which shall be of a nature binding and mandatory compliance;
12. To know, process and resolve breaches and to impose penalties for violations of this law, its regulations, enabling titles and other applicable electrical energy regulations;
13. Present to the Ministry of Electricity and Renewable Energy, within the first quarter of each year, an activity report of the previous year;
14. Receive, bring to the attention of the National Environmental Authority and follow up the
complaints that will be presented on the non-compliance with environmental and pollution prevention standards;
15. Encourage, promote and train all actors in the electrical sector on pollution prevention and control activities as well as processes for mitigation of environmental impacts;
16. Impose the suspension sanction or establish the intervention of the entities under its jurisdiction; and,
17. Exercise the other privileges established by this law and its general regulation.
Article 16.-Directory.- The Agency for Regulation and Control of Electricity ARCONEL will have a Directory of three members:
1. The Minister of Electricity and Renewable Energy or his permanent delegate, who will hold the Chair of the Board;
2. The National Secretary for Planning and Development or its permanent delegate; and,
3. A permanent professional delegate of the President of the Republic, with knowledge and professional experience of at least five (5) years in the electrical sector, with their respective alternate, who will meet the same requirements and will act only in case of absence of the holder.
The members of the Board of Directors of the Electricity Regulation and Control Agency ARCONEL are subject to all the financial incompatibilities established by law for public servants, except as provided for in the Organic Law of Public Enterprises. They will not have a dependency relationship with the entity. Delegates who do not force public servants will have the right to receive a diet, the amount and conditions of which will be established by the Board of the Agency for the Regulation and Control of Electricity ARCONEL.
The Executive Director will act as the Secretary of the Board, with a voice but no vote.
The Quorum of the Directory sessions will be constituted with the presence of two members, of which one of them must be the President. of the Directory.
The Directory will act through reasoned and majority-adopted resolutions.
Article 17.-Privileges and Duties of the Directory.- Corresponds to the Directory of the Regulatory and Control Agency ARCONEL Electricity:
1. Approve the tariff specifications for the public electric energy service and for the general public lighting service;
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2. To issue regulations for the operation and development of the electrical sector;
3. Propose to the Ministry of Electricity and Renewable Energy the projects of regulations or regulatory reforms related to the electrical sector;
4. To adopt the rules of organization and operation of the Agency for the Regulation and Control of Electricity, which will determine the powers of the regional agencies to be created, within the framework of the powers contained in the present law;
5. Approve the annual budget of the Electricity Regulatory and Control Agency ARCONEL;
6. Approve the annual activity report of the Electricity Regulation and Control Agency;
7. Appoint the Executive Director, from a third party proposed by the Chairman of the Board;
8. To know and to resolve all issues that are considered in relation to the privileges and duties of the Agency for Regulation and Control, ARCONEL, the public electric power service and the general public lighting service; and,
9. The other functions assigned to you by this law and its general regulation.
Article 18.-From the Executive Director.- To be appointed Executive Director will be required:
1. Be Ecuadorian;
2. Possess duly recognized professional title and fourth academic level;
3. Have professional experience of at least ten (10) years in the electrical sector; and,
4. The others to be established in the general regulation of this law.
Article 19.-Powers and duties of the Executive Director.- They are the powers and duties of the Executive Director:
1. Exercise the legal, judicial and extrajudicial representation of the ARCONEL Electricity Regulatory and Control Agency;
2. Act in the Directory sessions, as Secretary, with a voice but no vote;
3. Perform the administrative acts and subscribe to the contracts that are necessary, in accordance with the privileges and duties assigned to the Agency for the Regulation and Control of Electricity, ARCONEL and the Directory;
4. Execute activities related to regulatory and control privileges in the field of their competence;
5. Submit annually to the Board a technical and economic report on the management of the ARCONEL Electricity Regulation and Control Agency;
6. Present the annual budget of the Agency for the Regulation and Control of Electricity ARCONEL, for knowledge and approval of the Directory; and,
7. The others attributed in the applicable rules that correspond.
Chapter IV
NATIONAL ELECTRICITY OPERATOR-CENACE
Art. 20.-Legal nature.- The National Electricity Operator, CENACE, is a strategic technical body attached to the Ministry of Electricity and Renewable Energy. He will act as the technical operator of the National Interconnected System (S.N.I.) and commercial administrator of the energy block transactions, responsible for the continuous supply of electrical energy to the minimum possible cost, preserving the global science of the sector.
The National Electricity Operator, CENACE in the performance of its functions, must safeguard the conditions of safety and quality of operation of the National Interconnected System (S.N. I), subject to the regulations issued by the ARCONEL Electricity Regulatory and Control Agency.
It is an institution of public law with legal personality, of an eminently technical nature, with its own patrimony, operational autonomy, administrative, economic and technical, it will be financed through the General Budget of the State and the contributions of the participating companies in the electricity sector.
The National Electricity Operator, CENACE will not exercise business activities in the electricity sector.
Article 21.-Duties and duties.- National Electricity Operator duties, CENACE:
1. Carry out the short-, medium-and long-term operational planning for the supply of electricity at the lowest possible cost, optimizing electricity transactions at the national and international levels;
2. Sort the generation dispatch at the lowest possible cost;
3. Coordinate the real time operation of the S.N.I., considering safety, quality and economy conditions;
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4. Commercially manage and liquidate electrical sector transactions at the wholesale level;
5. Administer technical and commercial international electricity transactions on behalf of participants in the electricity sector;
6. Coordinate the implementation and implementation of generation and transmission maintenance;
7. Comply, within the scope of its competences, with the regulations issued by the Agency for the Regulation and Control of Electricity ARCONEL;
8. Monitor and coordinate the supply and use of fuels for the generation of the electricity sector; and,
9. Exercise the other duties and duties established by the governing body, this law, its general regulation and other applicable regulations.
Article 22.-From the Executive Director.- The Executive Director shall be appointed by the Minister of Electricity and Renewable Energy. To be designated Chief Executive Officer will be required:
1. Be Ecuadorian;
2. Possess professional title in electrical engineering, duly recognized and of the fourth academic level;
3. Have professional experience of at least ten (10) years in the electrical sector; and,
4. The others to be established in the general regulation of this law.
Article 23.-Powers and duties of the Executive Director.- Corresponds to the Executive Director:
1. Exercise the legal, judicial and extrajudicial representation of the National Electricity Operator, CENACE;
2. Execute the activities related to the administration and operation of the electrical system, within the framework of its competence;
3. Fix the annual aliquots of the participating companies in the electricity sector for the operation of the National Electricity Operator, CENACE, based on the respective regulation;
4. To issue the administrative acts and to sign the contracts that are necessary, in accordance with the privileges and duties assigned to the National Operator of Electricity, CENACE;
5. Execute the activities related to the administration and operation of the electrical system, within the framework of its competence;
6. To present within the first quarter of the year to the Ministry of Electricity and Renewable Energy a technical and economic report on the management carried out, corresponding to the previous immediate year;
7. Submit for approval from the Ministry of Electricity and Renewable Energy the annual operating and investment budget;
8. To know and resolve all issues that are considered, with respect to the privileges and duties of the National Operator of Electricity, CENACE;
9. Issue the necessary regulations for internal organization and operation; and,
10. The others attributed in the corresponding regulations.
Chapter V
BUSINESS PARTICIPATION
Article 24.-From public and mixed companies.- The State, through the Ministry of Electricity and Energy Renewable, it may authorize public companies, created under the Organic Law of Public Enterprises, the activities of generation, transmission, distribution and marketing, import and export of electric power and lighting service general public. In order to carry out these activities, public companies may conclude all acts or contracts for the purchase of goods, execution of works or the provision of services that they deem necessary.
The State, through the Ministry of Electricity and Renewable Energy, may authorize joint ventures in which the majority of shares are operated, the activities of generation, transmission, distribution and marketing, import and export of electrical energy, and service of general public lighting, as provided for in this law. Its management will be limited to the execution and development of projects and activities that cannot be carried out by public companies, as determined by the Ministry of Electricity and Renewable Energy.
The State, through the Ministry of Electricity and Renewable Energy, may authorize the activities of generation, transmission, distribution and marketing, import and export of electric power, and general public lighting service among state-owned enterprises of the States of the international community.
Article 25.-Of companies State, through the Ministry of Electricity and Renewable Energy, will be able to delegate, exceptionally, to private equity companies, as well as to companies of popular and solidarity economy, the participation in the activities of the electricity sector, in any of the following cases:
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1. When necessary to satisfy the public, collective or general interest;
2. When the demand for the service cannot be covered by public or mixed companies; or,
3. In the case of projects using non-conventional renewable energies not included in the Electricity Master Plan;
For the first two cases, the delegation of the projects, which must be included in the EMP, shall be carried out by means of a public selection process, conducted by the Ministry of Electricity and Renewable Energy, which allows the company to choose the company that will develop the project in the conditions most favourable to national interests.
For the third case, the The Ministry of Electricity and Renewable Energy will be able to delegate its development, prior to the implementation of the requirements laid down in the relevant legislation.
Projects using renewable energy may access an incentive scheme to be determined in the respective legal regulations.
Private or economic enterprises popular and solidarity mentioned in this article must be established in Ecuador, in accordance with the corresponding regulations.
It is excepted from the public selection processes, mentioned in this chapter, the granting of concessions, which under this article, will be carried out by the State through the Ministry of Electricity and Renewable Energy, in respect of projects which are available, by means of delegation to foreign State-owned enterprises or subsidiaries thereof, mixed-economy companies or to consortia in which such State-owned enterprises have a stake
any case, the concession contracts, will be subject to the observance of the rules of the Constitution of the Republic, this law, its general regulation and the agreements prior to its direct grant.
Title IV
MANAGING ENERGY SOURCES AND RENEWABLES NO
CONVENTIONAL
Article 26.-Non-conventional renewable energy.- The Ministry of Electricity and Renewable Energy will promote the use of clean technologies and alternative energy, in accordance with the Constitution that proposes to develop a sustainable electricity system, supported by the use of renewable energy resources.
Electricity produced with this type of energy will have established preferential conditions by regulation issued by ARCONEL.
Title V
PROVISION OF THE PUBLIC ELECTRIC POWER SERVICE
Chapter I
ENABLING TITLES
Article 27.-Grant Authority.- The Ministry of Electricity and Renewable Energy will be responsible for processing and issuing the following enabling titles:
1. Operation authorization; and,
2. Concession contract.
For the case of mixed, private, popular and solidarity-based enterprises, foreign or subsidiary state-owned enterprises, or consortia in which such state-owned enterprises have majority the time-limits for the enabling titles will be determined on the basis of a financial analysis, which will enable the depreciation of investments to be made first and the achievement of a reasonable profit; and, secondly, the importance of the technical, economic and social contribution to national development.
For the case of self-generators, the term of the enabling title shall be established in the light of the useful lives of the different types of technologies, excluding the principle of reasonable utility. The self-generator that decides to manage the obtaining of an enabling title, must consider within the financial analysis, that the covering of its investment and costs of operation and maintenance, will be fi nanced through the business of self-generation.
Article 28.-Authorization of operation.- The Ministry of Electricity and Renewable Energy shall process and issue the respective operating authorization for the execution, operation and operation of projects developed by public and mixed companies.
For the case of joint ventures, the authorization of the operation shall be considered as a delegation granted by the State in accordance with Article 316 of the Constitution of the Republic of Ecuador.
The requirements and procedures for granting Operation Authorization after its approval, as well as the rights and obligations of the grantor and dealers, will be established in this law and its general regulations and the respective enabling titles.
Article 29.-Contract of concession.- The Ministry of Electricity and Renewable Energy will sign concession contracts with private companies and Popular and solidarity economy, whose projects have been included in the PME or those that are not included in the PME, have been proposed by the companies concerned, observing the regulations issued for the effect.
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The requirements and procedures for granting the concession contract after approval, as well as the rights and obligations of the grant and concessionary, will be established in this law and its general application regulations and the respective enabling titles.
Article 30.-Authorization for the use of renewable energy resources and not conventional.- The promotion of non-conventional renewable energies, as well as the use of resources renewable energy sources, must have prior authorization for the use of these resources by the National Environmental Authority, and must observe compliance with the provisions of the governing body of the national plan.
Article 31.-Registration of Enabling Titles.- The National Registry of Enabling Titles, which will be in charge of the Ministry of Electricity and Renewable Energy, shall contain all information related to the operating authorisations and concession contracts in the electricity sector. It will be the responsibility of the power companies, at their own cost, to register the enabling title in accordance with what is available for the effect in the general regulation of this law.
Registration will be public and available to knowledge of stakeholders.
Article 32.-Request and processing for the granting of operating authorizations and concession contracts.- Applications to obtain an operating authorization or a concession contract for projects which are not included in the EMP, will be submitted to the Ministry of Electricity and Energy Renewable so that, after the respective analyses and studies, it will resolve on the granting of the enabling titles.
Article 33.-Termination of the term of the concession contract.-At the end of the term of the concession contract granted, all goods affected by the public service must be reversed and transferred to the Ecuadorian State at no cost. If there is no interest in the facilities, they must be removed by the concessionaire at their cost.
For concessions for hydroelectric generation, all goods affected by the public service will be compulsory. transferred to the Ecuadorian State, without any cost or exception.
With an advance not less than 18 months before the end of the period provided for in the concession contract, the Ministry of Electricity and Renewable Energy will establish the actions and measures to be taken for termination.
Article 34.-Termination of the contract concession.- The Ministry of Electricity and Renewable Energy may terminate the concession contract in the following cases:
1. For the purpose of the concession contract object;
2. By the expiration of the concession contract term;
3. By mutual agreement of the parties, duly motivated and not affecting the interest of the State;
4. By expiration;
5. By termination;
6. By resignation of the holder, without prejudice to the responsibilities of the holder;
7. For bankruptcy of the concession holder; and,
8. For other causes established in the respective concession contract.
The termination extinguishes the rights of the concessionaire, and will produce its effects from the date of its notification. The application procedure will be established in the general regulation to this law.
For the termination of the concession contract based on the numerals 4, 5, 6 and 7 of this article, the concessionaire is obliged to to immediately deliver to the State all rights, equipment, machinery and other elements affected by the public service, at no cost to the State, and, in addition, will automatically lose the guarantees and guarantees rendered according to the law, general regulations and other instruments, which will be in favor of the State.
The State will have the ability to order the dealer to remove, at the cost of the dealer, the goods which he or she believes are not suitable for the activity.
However, the effects indicated in the preceding paragraphs, in the case of termination based on any of the numerals of this Article shall subsist the responsibility of the former holder, for environmental damage, which also implies the obligation to restore the ecosystems and compensation to the persons and communities, if any this.
In the concession contract, the treatment to be given to the property will have to be established to the public service for termination cases that are not indicated in this law and its general regulation.
Article 35.-Causals of expiration of the concession contract.- Without prejudice to the grounds of expiration that are establish in the general regulation of this law and the concession contract, the Ministry of Electricity and Renewable Energy may declare the expiration of the concession contracts, in the following cases:
1. Do not enter into commercial operation as provided for in the enabling title or if, once initiated, suspend it for a period exceeding 60 days without cause to justify it, except force majeure or fortuitous case duly proven to the Ministry of Electricity and Renewable Energy.
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2. Do not restart, within a maximum of sixty days, operations after the causes that prompted the suspension are missing.
3. Incur untruths in bad faith or dolosas, in statements or reports about technical or economic data.
4. Do not make the investments stipulated in the concession contract.
5. Have employed fraud or illegal means, in the subscription of the concession contract.
6. Transfer rights or conclude private contracts or agreements for the assignment of one or more of their rights, without the authorization of the Ministry of Electricity and Renewable Energy.
7. Transfer of shares, shares, certificates of contribution or other securities involving a change in the partners of a private company or of the popular and solidarity economy, without authorization from the Ministry of Electricity and Energy Renewable.
8. For operating without authorization.
9. Install generation or self-generation plants; as well as, import or export electrical power, without the corresponding concession contract.
10. For administrative penalty resolutions issued by the National Environmental Authority concerning environmental violations, without prejudice to the obligation of the holder to perform the appropriate remediation.
11. For abandonment of the project, or in the operation, for more than thirty days of the concession holder.
12. Where the fines exceed the value of the guarantee of the financial year, the fulfilment of obligations or the time limit.
13. Attack the technical, economic and financial stability of the electrical sector.
Expiration extinguishes the rights of the concessionaire, and will produce its effects from the date of its notification.
Article 36.-Expiry of the concession contract.-The Ministry of Electricity and Renewable Energy in exercise of its jurisdiction and competence may declare the expiration of the Contract of Concession, in the event that its owners have incurred the causals of expiration established in Article 35, in this Chapter, and more provisions of this law, its general regulation and the concession contract.
In any procedure for the declaration of expiration, the right to due process shall be ensured, including the basic guarantees enshrined in Article 76 of the
Constitution of the Republic of Ecuador. The process of declaration of expiration may be initiated by the Ministry of Electricity and Renewable Energy, by denunciation of a third duly substantiated and investigated by the Ministry of Electricity and Renewable Energy or on request of other ministries related to the electricity sector. The administrative procedure shall be subject to the provisions of this law and to those of its general regulation.
The technical report on the grounds of fact shall serve as a basis for the declaration of revocation and shall be formulated by the Agency. Regulation and Control of Electricity ARCONEL.
The Ministry of Electricity and Renewable Energy will carry the operator with the technical report of the Agency for the Regulation and Control of Electricity ARCONEL, to the effect that in the term of 45 days, it accredits the fulfillment of its
If the Ministry of Electricity and Renewable Energy will not find a basis for continuing the expiration process or if the cause has been distorted by the In this respect, he will declare it concluded and will have the file of the file available. Otherwise, if there are outstanding obligations to comply, by means of a duly substantiated administrative decision, the concessionaire shall order the licensee to remedy the non-compliance within 60 days, without prejudice to the payment of interest and fines. related to the time of non-compliance. The Ministry of Electricity and Renewable Energy may request the reasoned pronouncement of other state entities within the expiration filing process.
If the concessionaire will not remedy the breach within the deadline The Ministry of Electricity and Renewable Energy shall declare by means of a reasoned decision the expiry of the concession contract. The concessionaire may institute the actions and administrative and jurisdictional resources provided for in the Ecuadorian legislation.
An administrative procedure for the declaration of expiration shall be initiated, the concessionaire may not give up the concession.
Article 37.-Controversies arising from the concession contract.- The resolution of differences and/or disputes that are the subject of the Contract of Concession may only be submitted to the judges of the judicial function of Ecuador or an instance of regional arbitration. In any case, it will be in accordance with article 422 of the Constitution of the Republic of Ecuador.
Article 38.-Goods affected by the public service of electrical energy.- Within the term of validity of the enabling titles, the public and strategic electric power service providers shall not be able to remove equipment or installations which are essential for carrying out this activity without authorisation from the Ministry of Electricity and Renewable Energy.
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Chapter II
INDUSTRY OPERATING SYSTEM
Article 39.-Participants.- The electrical sector will be constituted by legal persons engaged in the activities of generation, self-generation, transmission, distribution and marketing, general public lighting, import and export of electrical energy, as well as persons natural or legal persons who are regarded as consumers or financial users.
Article 40.-Of the generation.- The activity of generating electricity will be carried out by public companies, companies of mixed economy; and, by other private legal persons and of popular and solidarity economy, duly enabled by the granting authority to exercise such activity.
Its operations shall be subject to the provisions of its respective enabling title, as well as to the constitutional, legal, regulatory and regulatory rules to be established, under its exclusive responsibility, and observing principles of transparency,
The development of new generation projects will be based on the sectoral policies set out in the sectoral plans and the National Development Plan.
Article 41.-From self-generation.- The activity of self-generation of electricity and its surplus, will be treated according to the regulation that for the effect the ARCONEL will dictate.
It is considered as part of the self-generation activity, the cogeneration processes destined for the production of electrical energy.
The oil generation and self-generation mining, located in systems not incorporated in the S.N.I., shall be based and shall be controlled in accordance with their oil or mining enabling titles, as the case may be. In electrical matters, and while maintaining their status as non-incorporated in the S.N.I., they shall submit the information required by the Ministry of Electricity and Renewable Energy or the ARCONEL, exclusively for the purposes of planning, statistics and information, as determined in the corresponding regulation.
Article 42.-Of the transmission.- The activity of transmission of electricity at the national level will be carried out by the State through the respective public company.
Your operation will be subject to the provision of your respective enabling title as well as the constitutional, legal, regulatory and regulatory norms that are issued, under their sole responsibility, and observing principles of transparency, efficiency, continuity, quality and accessibility.
It will be the obligation of the public company in charge of the transmission, expand the National Transmission System,
on the basis of plans developed by the Ministry of Electricity and Renewable Energy.
By means of the economic recognition that is determined in the Approved tariff specifications, the transmitter is obliged to allow free access of
Ministry of Electricity and Renewable Energy will be able to authorize joint ventures, and in an exceptional way to private companies or the popular economy and solidarity, specialised in electrical transmission, the construction and operation of the electricity transmission systems which are in the PME.
Without prejudice to the provisions of this Article, the Ministry of Electricity and Renewable Energy may authorise a generator, self-generator, distributor, large consumer or user to build a transmission network, to its exclusive cost, to meet your own needs.
Article 43.-Distribution and marketing.- The distribution and marketing activity of electricity will be carried out by the State through legal persons duly authorised by the granting authority to carry out such activity. Their operations shall be subject to the provisions of their respective enabling title, as well as to the constitutional, legal, regulatory and regulatory rules to be established, under their sole responsibility, and to observe principles of transparency, efficiency, continuity, quality and accessibility.
It will be the obligation of each company dedicated to the distribution and marketing activity, to expand its system according to the guidelines for the planning that the Ministry of Electricity and Renewable Energy, to satisfy, in the terms of its title (a) the right of access to the right of access to the right of access to the right of access to the right of access to the services of the Member State of the European Union; the service must be provided, according to the relevant regulation.
The electric utility will provide the supply of electrical power to natural or legal persons who credit the requirements established in the regulation that for the purpose dicte the ARCONEL.
In order to enable the electrical utility to supply the electricity supply, it must subscribe to the consumer or the end user of the respective electricity supply contract, the stipulations, conditions and other rules
marketing activity comprises the purchase of electrical energy blocks to be sold to consumers or to the end user; and all the commercial management associated with the
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these purchase and sale transactions, among others the installation of measurement, reading, billing and collection systems
Electrical distribution and marketing companies will have co-active jurisdiction for the collection of the accreances related to the provision of the public electric power service and the public lighting service. general.
Article 44.-Big consumers.- Big consumers will be those legal persons, duly qualified as such by the competent body, whose consumer characteristics empower them to act through bilateral contracts.
The consumer characteristics will be supported by the respective regulation.
Article 45.-International interconnections.- International electricity interconnections will be permitted according to the availability and needs of the electrical sector and will be subject to to the Constitution of the Republic of Ecuador, treaties and instruments
The Ministry of Electricity and Renewable Energy will be charged with defending policies on international interconnections.
It will be up to ARCONEL coordinate the regulatory actions that correspond with the regulatory agencies of the countries involved.
The National Electricity Operator, CENACE will coordinate the operation of the electricity interconnections with the neighboring countries and apply the rules on international energy transactions.
Article 46.-Energy block transactions.- Energy block transactions may be held only by purchases and energy sales through contracts entered into by the participants. They will be commercially liquidated by the National Electricity Operator, CENACE, based on the prices agreed upon in the contracts.
For the commercial closure of commercial transactions through contracts, they can be made
the short term,
electricity transactions will be settled by the National Electricity Operator, CENACE, according to the commercial agreements with the other countries.the scope and conditions of the contracts for the purchase and sale of energy, as well as Short term, they will be established by means of the regulation that for the effect the ARCONEL has for the effect.
Article 47.-From the programming of the operation.- The National Electricity Operator, CENACE will carry out the programming of the operation of long, medium and short term, to achieve the minimum operating cost for the country considering the technical constraints.
Participants performing generation, self-generation, transmission, distribution and marketing activities, and large consumers, in addition to those enabled for international transactions electricity, will have an obligation to provide the National Electricity Operator, CENACE, all the economic, technical and operational information that must be used for the programming.
Article 48.-From the economic office.- The National Operator of Electricity, CENACE will carry out the economic dispatch of the units and The Commission will, on the basis of the operational programming of the operation identified in the previous immediate article, be able to obtain the minimum possible cost of electricity, considering the variable costs of production, which they must be declared by each generator and audited by that operator, according to the respective regulations.
Article 49.-From the commercial settlement.- The purchases and sales of electrical energy that are made between the participants of the electrical sector through contracts, as well as the short-term transactions, will be liquidated by the National Operator of Electricity, CENACE, within the scope of its competences, on the basis of the regulation issued for the effect by the ARCONEL.
The National Electricity Operator, CENACE will determine the values to be paid and collected by each participant. Likewise, it will liquidate the securities corresponding to the electricity transmission service and international electricity transactions.
Article 50.-Of the regulated contracts.- The legal persons engaged in the generation activity has the obligation to enter into regulated contracts with legal persons engaged in the distribution and marketing activity, in proportion to their regulated demand.
Mixed, private or (a) a popular economy and solidarity, when they contract with electricity companies dedicated to distribution and marketing activities, must do so in regulated contracts, in accordance with the specific regulation issued by ARCONEL, may also contract with large consumers through bilateral contracts.
activities of generation, transmission, distribution and/or marketing are concentrated in a public company, the costs of transfer between the activities of generation, transmission, distribution and/or marketing must be recorded considering the same principles of regulated contracts, and shall be subject to throttling that for the effect issue the ARCONEL.
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In the case of the generation of ownership of the distributor and embedded in its own network, power and power production will be delivered in proportion to the demand of the distribution companies, to maintain the single tariff at the national level.
Article 51.-Short-term transactions.- can be caused by the difference between the amounts of energy contracted and those actually consumed or produced, or by the services associated with the generation or transport of electrical energy.
The energy will be valued with the economic cost obtained from the actual dispatch of generation at the end of each hour, called the time cost of the energy, in which incremental losses of transmission will not be considered and will be unique for all bars of the electrical system.
The determination of the energy lost in the transmission stage, as well as its economic assessment, and the (a) the remuneration for the transmission services shall be made by the ARCONEL through the
Article 52.-Of the public selection processes.- For the construction, operation and maintenance of priority projects, according to the order of execution provided for in the PME, which could be granted to Private companies or popular and solidarity-based economy, the Ministry of Electricity and Renewable Energy will carry out public selection processes.
For each process, the energy requirement of the demand will be determined, in which it will be possible also consider unregulated demand, as well as term and price conditions.
The applicant is entitled to the right to be granted the respective enabling title, and on the other hand, the offeror is under the obligation to subscribe to the respective regulated contracts, on the basis of the price presented in the offer.
When the project is identified by the private initiative and is not incorporated in the PME, to agree with the national interests, it will be able to develop it, at its risk, prior to the express authorization of the Ministry of Electricity and Renewable Energy, according to the terms set out in its enabling title and the
Article 53.-From the planning and investment in the electrical sector.- The PME, whose development will be carried out by the Ministry of Electricity and Renewable Energy, with a projection to ten years, Identify the priority generation projects for the electricity sector.The Plan identifies the expansion and improvement programmes for the generation, transmission, distribution and energization of isolated rural areas.
Electricity Master Plan will ensure that electrical energy coverage in areas is increased
Ministry of Electricity and Renewable Energy will select, from the aforementioned Plan, those that will be developed by the State and those that could be proposed to private and economic enterprises. popular and supportive, prior to the public selection process established in this law.
The investment required to execute the projects of generation, transmission and distribution of the PME by the public entities and companies, will be carried out by the General Budget of the State and/or through its own resources.
Alternatively, for the financing of projects, public companies will be able to contract credits with their own or state guarantees.
The investments financed by the State through the General Budget will be
Chapter III
TARIFF REGIME
ARTICLE 54.-PRICES SUBJECT TO: regulation. Tariffs.- The ARCONEL, within the first half of each year, will determine the costs of generation, transmission, distribution and marketing, and general public lighting, which will be applied in the electric transactions, which will serve as a base for the determination of the consumer or final user charges for the subsequent immediate year. In cases, expressly established in the corresponding regulation, the approved tariffs for the year of validity may be revised.
ARCONEL, prior to the corresponding study, will be able to set rates that promote and encourage development of basic industries, considering for the effect the use of renewable and environmentally friendly energies, at competitive and stable prices, or subsidies, if necessary.
energy efficiency.
The adjustment, modification and restructuring of the Tariff specifications shall mean the automatic modification of the public service supply contracts of the public electricity service which includes the general public lighting service.
Article 55.-Tariff principles.- They will be prepared by ARCONEL, observing the principles of solidarity, equity, cost coverage, energy science, which should be developed in the respective regulation. The rate will be unique across the
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national territory as per the modes of consumption and voltage levels. In addition, principles of social and environmental responsibility must be considered.
Exceptionally, it will be possible to pay differentiated rates to consumers who, at the date of issue of this law, maintain rates different from the tariff rate. (a) the only financial sector that has been awarded at national level.
The investment contracts in the electricity sector that are signed with the Republic of Ecuador under the provisions of Article 25 of the Organic Production Code will include a clause of the price stability of the purchase of the energy or, in its absence, of programmed readjustment of the same.
Article 56.-Cost of the public utility of electrical energy.- The cost of the public and strategic electric energy service will comprise the costs related to the stages of generation, transmission, distribution and marketing; and of the general public lighting service, the same ones that will be determined by the ARCONEL.
The cost of generation corresponds to the value that a consumer or end user will have to pay for the supply of electrical power, to cover the costs of the generation activity operated optimally.
Private generation or popular and solidarity economy, costs should consider the remuneration of the assets in service, as well as the items for administration, operation and maintenance; and, the costs associated with the liability environmental.
For public and mixed generation and transmission companies, costs must consider the items for quality, confi ability, availability, administration, operation and maintenance; and, the costs associated with environmental responsibility.
For electric power generators in charge of In the case of private capital generators and the economy, 30% of the surplus to be obtained during the operation phase will be allocated to projects for territorial development in the area of project activity. 3% of the profits will be allocated to the The remaining 12% will be allocated to projects for territorial development in the area of project development. In both cases, the criteria for allocation to territorial development projects, as well as the allocation period, will be determined in the general regulation of application to this law.
The costs of distribution and marketing and lighting General public will cover the value corresponding to the items for quality, confi ability, administration, operation and maintenance, and the expansion of each system resulting from the technical-economic study prepared by the ARCONEL.
Article 57.-Tariff Pliegos.- ARCONEL, through its Directory, will approve the tariff specifications, the same ones that, for the knowledge of the users of the system, must be informed through the media in the country and published in the Ofi cial Register.
Article 58.-Payment of services of public sector entities and bodies.- In case of default in the performance of the obligations by the entities and bodies of the public sector for the consumption of electrical energy, electric utilities in the exercise of jurisdiction coactive, may order the Ministry of Finance, the debit of the corresponding securities from the transfers corresponding to those entities and bodies, and its direct transfer to the electricity companies.
For this effect, electric utilities will coordinate with the Ministry of Finance, the procedures necessary to comply with this provision.
Article 59.-Subsidies.- If for circumstances of a social or economic nature, the State has granted or decided to grant direct and targeted compensation, subsidies or rebates in the public service of electrical energy, to a certain segment of the population, through laws, or sectoral policies, or if through ARCONEL, approve or have approved tariff specifications that are located below the costs of the service Public electricity, the values corresponding to these subsidies, compensations or rebates will be covered by the Ecuadorian State, and will be mandatory in the General Budget of the State.
The Ministry of Electricity and Renewable Energy will be in charge of informing, to the Ministry of Finance, on the amount of the compensation, subsidies or rebates indicated in the previous paragraph, applicable for the following year.
The Ministry of Electricity and Renewable Energy will manage the timely delivery of the related amounts to the companies (i) to ensure the financial stability and financial stability of the sector. The Ministry of Finance will cover monthly, based on the information consolidated by ARCONEL, the values corresponding to the subsidies and rebates.
Consumers or residential consumers of low consumption may be subsidized by the other consumers or residential users, in accordance with the regulation that the ARCONEL has for the effect.
Article 60.-Billing to consumers or financial users.-On the invoice corresponding to the consumption of public utility of electric power, to consumers or to the financial users, it will be included, only and exclusively, the items corresponding to the services provided by the electricity company, the details of which will be included in the regulation to be issued by ARCONEL for the purpose.
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Article 61.-Exceptions.- Except for the price subject to regulation, the following transactions:
1. Transfers of electric power between private capital generators with distributors, through regulated contracts;
2. Transfers of electricity between private capital generators with large consumers, through bilateral contracts;
3. Transfers of surplus power between self-generators with distributors, through regulated contracts;
4. The transfers of the surplus of electricity between the self-generators with the big consumers, through the bilateral contracts; and,
5. International electricity transactions.
Chapter IV
SPECIAL REGIMES
Article 62.-Public Lighting and Harmonization.- The State, through the public companies that perform the activity The distribution will be responsible for the construction, operation and maintenance of the general public lighting systems. In addition, these companies will supply electrical energy for the production of electricity, systems for public safety, ornamental and intervention lighting.
The construction, operation and maintenance of lighting systems public ornamental and intervention will be the responsibility of the autonomous decentralized governments in accordance with the COOTAD, or any entity responsible for the public space and traffic control, whose costs may be cofinanced by the distribution companies considering the costs of standard street lighting. By agreement between the decentralized autonomous governments and the distribution companies, the maintenance of these public lighting systems can be performed by these companies.
ARCONEL will regulate the technical, economic, (a) charging and quality of general public lighting for the provision of an efficient service.
It is for the consumer or the end user of the electric power service, the payment for the general public lighting service, as well as for the electrical energy consumption of the system for the use of the system of the system of
The costs of investment, operation and maintenance, and energy consumption of lighting intended for lighting of roads for vehicular and pedestrian traffic of private spaces declared as horizontal property, will be
The costs of investment, operation and maintenance of the general public lighting service, which, by special requirements, determine characteristics different from those established in the rules issued for this service, will be assumed by the applicants. For this purpose they must have the authority of the competent authority for the use of public space.
In the construction of new routes or extension of the existing ones, in charge of the Ministry of Transport and Public Works and of the Autonomous Decentralized Governments, these entities will be responsible for developing the technical studies and executing the general public lighting, ornamental or intervention works according to these studies.
Article 63.-Program Rural Energy.- The State will promote and finance, as a matter of priority, the projects for the development of rural electrification, especially in isolated areas of distribution systems. The annual values, necessary for the execution of the same, will be managed by the Ministry of Electricity and Renewable Energy before the Ministry of Finance.
The Program will be financed by the resources from the General Budget. of the State. However, it may also be financed by contributions or donations from public or private entities, national or foreign, and others to be determined in this or other laws, duly controlled by the Ministry of Electricity and Renewable Energy.
To be included in the PME, the Ministry of Electricity and Renewable Energy will prepare in the first quarter of each year, the Rural Energy Program, in which the areas of lesser development will be prioritized, favoring a harmonics of all regions of the country, for the following immediate year.
ARCONEL (a) to issue regulations for the identification of rural energy projects, and for the monitoring and control of the implementation of the Programme.
Distributors shall be in charge of the identification, execution, operation and maintenance of the works; as well as the fi scalization of the works.
Article 64.-Isolated and insular systems.- Systems which, by special conditions, cannot be connected to the S.N.I., shall be considered as unincorporated; the regulated customers of these systems may have different tariff charges for the zones interconnected, approved by ARCONEL. The subsidies that may originate in these systems will be covered by the consumers or financial users of the S.N.I. or assumed by the State, according to the policies established by the Ministry of Electricity and Renewable Energy.
Information related to the technical, economic and financial issues of these systems must be submitted to the Ministry of Electricity and Renewable Energy, ARCONEL and the NATIONAL ELECTRICITY OPERATOR, CENACE.
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Article 65.-Electrical expansion for urbanizations and the like.- The installation of networks, transformation stations, generation of emergency and more works necessary to attend the electric service in lotiations, urbanizations, buildings of horizontal property and the like, will be the responsibility of the executors of those real estate projects.
In order to cater for the electricity service in lotiations, urbanizations and edifi horizontal property, must be underground.
In these cases for the provision of the electricity supply, the electrical company responsible for the activity of distribution and marketing of electricity, will ask the executors of the real estate projects: title of duly legalized property and registered in the Land Registry; authorization issued by the Autonomous Decentralized Government that corresponds to the approval of the real estate project; and (i) the need to ensure that the project is located within the areas of the feasible in the respective technical document issued by the National Secretariat for Risk Management.
The ownership of these facilities and the processing stations of the lotiations and urbanizations will be of the company
Distributor companies will keep appropriately identified in their databases, electrical and accounting, the financial assets that are funded by individuals they receive.
ARCONEL will not include the value of these assets for the tariff calculation, but only the replacement costs associated with them,
Chapter V
REGIME OF VIOLATIONS AND SANCTIONS
FOR THE ARCONEL EFFECT WILL ISSUE THE RESPECTIVE REGULATIONS.
CHAPTER V
Article 66.-Types of infractions and penalties.- The violations of the law, its general rules, regulations, and the enabling titles, without prejudice to the expiration of the laws, shall be punishable by a fine imposed by the ARCONEL, From 2 to 40 Unifi Basic Wages, SBU, from private sector workers, according to the importance or severity of the damage caused by the action or omission constituting the infringement, in addition to the compensation for damages and the repair of the damage actually produced.
The infractions shall be:
1) Infractions
2) Serious infractions.
Article 67.-Mild infractions.- These are those involving administrative aspects that do not have the greatest impact on the public electric power service, with the following being:
Minor infringements of the company:
a) Delays not justified in the delivery of the information required.
b) Incompliance with the execution of expansion plans and improvement of operation, transmission or distribution, as long as it does not affect the security and reliability of the systems.
c) Incompliance in the execution schedule of the generation projects, provided they do not affect the date of entry into commercial operation.
d) Partial non-compliance with the quality indices established by the ARCONEL.
In the event that the electricity company incurs any of the violations listed as minor, the penalty will be 20 Basic Wages Unifi Cados (SBU). Recidivism will be sanctioned with 30 SBU.
The aforementioned infringements and their corresponding sanction will also apply to the National Electricity Operator, CENACE in whatever case.
Article 68.-Serious infractions.- seriously the provision of the public and strategic electric power service:
1. From the company:
a) To whom it sells, resells or any other legal act enacts power and/or electric power without authorization, except in the cases expressly permitted by this law.
b) The non-compliance in the execution of the transmission and distribution expansion plans, affecting the security and reliability of the systems.
c) Failure to comply with maintenance programs affecting the safety of persons, as well as the security and reliability of the systems. systems.
d) Repeated failure to comply with the quality indexes established by ARCONEL.
e) Incompliance in the energy loss reduction program.
f) Failure to comply with the provisions issued by the National Electricity Operator, CENACE, that will be in the security of the system operation.
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g) Those that infringe on the integrity, security and technical and operational reliability of the electrical systems that provide the service
h) To issue inaccurate or distorted information.
i) Failure to comply with the obligations laid down in laws and regulations.
j) Failure to comply with the regulations and provisions issued by ARCONEL.
k) Hinder or dify the control to be performed by the Control and Regulatory Agency servers.
2. Serious infringements of the consumer or final user are considered:
a) Selling, reselling or any other legal act alienating power and/or electrical energy, except in cases expressly permitted by this law.
b) Limitation or to prevent, in a repeated manner, the fulfilment of the specific tasks of ARCONEL.
c) Consuming electrical energy through installations that alter or impede the normal operation of the instruments for measuring or controlling the supply of the public and strategic electrical energy service.
d) Consuming energy power, without having subscribed to the respective electricity service supply contract.
e) Consuming electrical energy in form or quantity that is not authorized by its electricity service contract.
f) Do not forward, in form repeated, information in the form and time limits established or granted by the authority competent.
g) Issuing inaccurate or distorted information.
h) Failure to comply with the obligations set forth in laws and regulations.
i) Failure to comply with the regulations and provisions issued by ARCONEL.
3. Serious infringements of third parties are considered:
a) Manipulate the electrical utilities of the public and strategic electric power service without the authorization of the relevant company.
In the event that the electrical company incurs any of the violations cataloged as serious, the sanction
will correspond to 30 SBU. Recidivism will be sanctioned with the maximum of the fines set out in this chapter, this is 40 SBU.
For the case of the consumer or end user, the penalty will be up to 2 SBU, and the recidivism will be sanctioned with up to 4 SBU.
For the case of third parties, the penalty will be 20 SBU. The recidivism will be sanctioned with 30 SBU, without prejudice to the civil and criminal actions to be taken.
The infractions mentioned above and their corresponding sanction, will also be applicable for the National Operator of Electricity, CENACE as far as is relevant.
These violations do not exclude criminal actions and penalties to occur as the case may be.
Article 69.-Obligation of the user to pay.- The application of the sanctions does not release the (a) the obligation to pay the energy company the energy consumed, plus a charge for the purposes of the compensation calculated on the basis of the regulation issued by ARCONEL for each month or fraction. The electrical undertaking shall carry out the corresponding liquidation and shall make it known to the end user for payment purposes.
Article 70.-Of the energy consumed unpaid.- The determination of the calculation of the energy consumed paid, will be performed by the electrical company, under the following parameters:
1. The date of occupation or lease of the building where the electrical energy has been consumed;
2. If applicable, the previous billings;
3. If applicable, the measurement made by a standard witness team; and,
4. In general, any other data or relative information that will help determine with the highest accuracy the unpaid consumption.
Article 71.-Suspension of services.- The electrical utility may suspend the supply of electrical power to the consumer or final user, for any of the following cases:
1. Due to the lack of timely payment of the electricity consumption, the following day of the maximum payment date previously notified to the consumer or the end user;
2. When electrical energy consumption is detected, through clandestine, direct and/or similar installations, which alter or impede the normal operation of the meter;
3. Where the connection of the final user does not comply with the technical conditions laid down for the purpose;
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4. When the power consumption is checked in circumstances that alter the requirements of the respective contract;
5. Where the electrical undertaking has provided adequate means of communication, it shall inform the user in good time that, for reasons of maintenance or repair, an electrical power suspension shall occur;
6. When electrical energy is consumed without the respective electricity supply contract having been concluded;
7. When there are connections to the electrical utility system without its authorization; and,
8. For reasons of force majeure or fortuitous cases.
The electrical undertaking shall suspend the electrical energy service, after notification to the consumer or the end user, in which the reasons for the suspension are detailed, except for the
If outstanding debts are granted to the electrical company, the jurisdiction is co-active for recovery.
Article 72.-Exclusion of liability.- The electrical company does not have responsibility for the suspension of the supply of public and strategic service electrical energy, due to causes of force majeure or fortuitous case duly verified by the ARCONEL.
Likewise, there will be no liability of the electric utility for the suspension of the supply of the public electric power service for the execution of maintenance works, scheduled non-emergent repairs, extension or modify (a) the Commission shall, in accordance with the requirements of this paragraph, give notice to consumers or financial users by means of mass media, with a minimum of 20 and four hours in advance at the beginning of the respective work.
Article 73.-Sanctioning procedure.- In the regulation issued by ARCONEL,
Title VI
ENERGY EFFICIENCY
Article 74.-Objectives.-Energy science will have as a general objective to obtain a same service or product with the lowest power consumption. In particular, the following:
1. To promote the science in the economy and society in general, and in particular in the electrical system;
2. Promote values and behaviors oriented to the rational use of energy resources, prioritizing the use of renewable energy;
3. To encourage the rational use of electrical energy by consumers or financial users;
4. Encourage the reduction of production costs through the efficient use of energy, to promote competitiveness;
5. Decrease the consumption of fossil fuels;
6. Target and defend the rights of the consumer or end user; and,
7. Reduce environmental impacts with the sustainable management of the energy system.
Article 75.-Establishment of energy efficiency policies.- The policies and standards to be adopted by the Ministry of Electricity and Renewable Energy, in order to meet the objectives set out in this field, will ensure greater efficiency in the use of energy sources and in the use of electricity by consumers or financial users.
These policies should be in accordance with the National Development Plan.
Article 76.-Mechanism to promote energy science.- The State through the Ministry of Electricity and Renewable Energy, will promote energy efficiency by means of incentives or punishments, which will be defended in the regulation. general of this law, and corresponding regulations.
Title VII
ENVIRONMENTAL LIABILITY
Article 77.-Coordination.- ARCONEL, within the scope of its competence, in coordination with the Authority Environmental National, will be responsible for monitoring compliance with the regulations governing the
Article 78.-Protection of the environment.- Corresponds to electric utilities, whether public, mixed, private or popular economy and solidarity, and in general to all the participants in the electrical sector in the activities of generation, self-generation, transmission, distribution and marketing of electrical energy, comply with the policies, regulations and procedures applicable according to the categorization established by the National Environmental Authority, for prevention, control, mitigation, repair and monitoring of environmental impacts in the construction, operation and retirement stages.
Article 79.-Environmental permissions.- Companies that perform activities within the electrical sector are
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required to obtain and maintain prior environmental permits in accordance with the environmental categorization established by the Authority National Environmental.
Article 80.-Environmental Impacts.- Electrical companies will have an obligation to prevent, mitigate, remedy and/or compensate as appropriate, the negative impacts that occur on the environment, by the development of its construction, operation and maintenance activities.
Title VIII
PUBLIC UTILITY AND TRANSIT EASEMENTS
Article 81.-Public Utility Declarations.- The Ministry of Electricity and Renewable Energy or public utilities that provide the public service For reasons of public utility or social and national interest, they may acquire real estate for which they will proceed with the declaration of public utility or social interest, in the framework of the Constitution and the Organic Law of the National Public Procurement System, which are necessary for the implementation of the activities for the generation, transmission, distribution and marketing of electrical energy and the general public lighting service.
The Ministry of Electricity and Renewable Energy, at the request of private or economic legal persons popular and supportive may declare the real estate, which is necessary for the execution of the electric power generation activities, of public utility or social interest and national interest.
Article 82.-Use of infrastructure for provision of public services and transit easements.- Public and mixed power, responsible for the provision of public and strategic electric power and the general public lighting service, will enjoy the right to free use of roads, poles, ducts, sidewalks and similar infrastructure. state, regional, provincial, municipal, or other public enterprises, so they will be exempt from paying taxes, fees and contributions for these concepts.
Article 83.-Easements.- Public companies the provision of the public electric power service and the mixed-economy enterprises shall enjoy of the right to tender transmission and distribution lines and other facilities of the electricity service within the respective constituencies in which they provide their services.
The rights generated as such The article has the character of force and permits the entry and occupation of the land through which the lines of transmission and distribution go through; but in no case do they constitute a prohibition to alienate the affected area, but only, an easement.
The Ministry of Electricity and Renewable Energy or Public Enterprises for the provision of the public electric power service, they may establish easements for the infrastructure of transmission and electrical distribution lines and other facilities of the electricity service. The Ministry of Electricity and Renewable Energy will be able to establish the easement for the infrastructure of transmission lines and electrical distribution and other facilities of the electric service of private legal persons, companies
If, for the purposes of these easements, the buildings become unusable, they must be declared as public utility.
Article 84.-Occupation of land for placement of posts, networks and laying of lines.-Electrical companies will have, prior to the studies respective, the right to occupy the areas of land necessary for the development of the following activities:
1. Placement of poles, towers, transformers or the like;
2. Laying of underground lines, comprising the occupation of the subsoil by the conductive cables, at the depth and with the characteristics specified by the applicable legislation, in coordination with the competent authorities and other providers of utilities; and,
3. Laying of overhead lines, which includes in addition to the flight on the servant, a strip of servitude for the placement of posts, towers or financial supports, for the support of power cables, following the layout of the line, according to the characteristics and safety requirements of the work.
In one and other form, the easement shall also include the right of passage or access, the temporary occupation of land and other goods necessary for the construction, conservation, repair and monitoring of electrical installations, as well as the entry of inspectors, employees and workers duly identified, materials and other elements necessary for the operation and maintenance of such facilities.
If, for the purpose of such easements, the buildings are rendered unusable, public utility.
Public utilities that provide the public electric power service shall be exempt from the payment of royalties, taxes or any other consideration for the use or occupation of the public space or the road public and the state, regional, provincial or municipal airspace, for placement of structures, posts and networks.
Article 85.-Indemnities.- The right of the owner of the respective property is limited, if necessary, to the collection of the
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corresponding compensation for damage to crops and forest or tree plantations that existed in it. In any event, the owner is obliged to provide the necessary facilities for the effective application of the rights established in this law.
The owner of the servant will not be able to make plantations, constructions, or works of another nature, which disturbs the free exercise of electrical easements. The violation of this provision, or if its plantations or groves that grow in such a way as to disrupt such exercise, will entitle the holder of the easement to remedy this disturbance at the expense of the owner of the property.
Article 86.- the resolution.- The Ministry of Electricity and Renewable Energy, after verifying the studies of works and technically checking the need for the construction of electrical works, by means of administrative resolution, duly motivated, impose the corresponding transit easement on the character of the obligation and give the right to enter and occupy immediately, without any other requirement, the area that will be affected by the right of servitude.
Article 87.-Enrollment of the resolution.- The administrative decision declaring In effect these rights will be entered, without further processing, in the Register of the corresponding Property.
GENERAL PROVISIONS
First.-General Regulation.- Within a maximum period of 180 days, starting with the enactment of this law, the Agency for Regulation and Control of Electricity ARCONEL will elaborate the of general regulations to the law, the same one that will be submitted to the knowledge of the Ministry of Electricity and Renewable Energy, and later to the knowledge of the Constitutional President of the Republic.
Second.-Generation binational.- The Ecuadorian State will be able to develop binational electric power generation projects, the treatment of this generation will be carried out according to the agreements, agreements or binational instruments that will be reached to subscribe, which shall be in accordance with the Constitution of the Republic, this law and its general regulation.
Third.-Collection of third parties.- Electrical energy distribution and marketing companies, in an exceptional and motivated manner, and prior to the authorization of ARCONEL, may agree with the Autonomous governments decentralized the collection of fees for the garbage collection service. These values will consist separately in an independent invoice.
Fourth.- The State will guarantee the implementation of alternative programs and projects of alternative elections in the indigenous and rural communities that are difficult to access.
TRANSIENT provisions
First.-Grant contracts and current permissions.- For licensees and permit holders and licenses, in which the State has an equity stake, the corresponding title It shall operate automatically, in the terms set out in this Law, without need for additional requirement.
For licensees and holders of permits, licenses and private law records, as well as for legal persons under private law who are operating at the date of approval of the This law and that do not have the contract of concession, permission, license or registration, is established a period of one hundred and eighty (180) days to subscribe the corresponding enabling title in the terms established in this law. If within this time limit is not concluded with the subscription of the enabling title, those legal persons shall not be able to participate in the sector and must initiate a new process for the granting of such securities, as the provisions of this law.
Second.-Processes in process.- The procedures initiated in the CONELEC for obtaining a concession, permit or license, prior to the validity of this law and which have not concluded to the date of its approval, must continue on the basis of the rules in force at the date of acceptance of the application,
Third.-Environmental permitting processes.- All processes for obtaining environmental permits from CONELEC, at any stage, must continue on the basis of current regulations the date of acceptance of your application, as far as applicable, until obtaining the respective permit. Once this law is in force, the new procedures for granting environmental permits will be the responsibility of the National Environmental Authority. The transfer of all environmental permit processes to the National Environmental Authority must be given within one hundred and eighty (180) days.
Fourth.-Approval of tariff specifications.- As of the approval of this law, the current tariff specifications approved by the CONELEC will maintain its application until the approval of a new tariff specification on the basis of what is established in this law and the corresponding regulation. The subsidies for Defi cit Tarifario and Tarifa Dignity will remain valid in the terms and conditions in force for the issuance of this law, until they are modified or eliminated by ARCONEL.
Fifth.-Regulated Contracts.- The regulated contracts subscribed on the basis of what is established in the Constituent Mandate No. 15 and the Regulations No. CONELEC 006/08, 013/08 and 004/09 and their reforms, will continue to be implemented during their term of validity; and, if they wish to renew them, they must be adjusted to the principles of this law and to the regulations that are issued for the effect.
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Sixth.-International Electricity Transactions.- International electricity transactions will continue to be executed in accordance with the principles laid down in the current Community legislation of the Andean Community Commission, in the agreements signed by Ecuador, and in the specific regulations issued on the matter, prior to the adoption of this law.
Once new agreements are in place with the Regulatory Bodies of countries neighbors and the region, these will be included within the legal order of the Ecuadorian electricity sector.
Seventh.-Collection of third parties.- Electrical distribution and marketing companies will be able to continue to raise through a single electric grid the values corresponding to the fees for the garbage collection service for a maximum period of 360 days from the enactment of this law. Once the deadline has expired, they will be expressly subject to the general provision of this law.
Eighth. -From the Ministry of Electricity and Renewable Energy.- The Ministry of Electricity and Renewable Energy, will continue to exercise its functions and powers in accordance with the provisions of this law.
Novena.-From the National Council of Electricity, CONELEC.- The servers and servers that currently work in the National Council of Electricity, CONELEC, through the selection process will be able to provide their services in the Agency of Regulation and Control of Electricity which is established under this law, respecting and recognising its stability, rights and working conditions in force for the enactment of this law.
All assets, assets and liabilities of the National Electricity Council, CONELEC, will become part of the assets of the Agency for Regulation and Control of Electricity ARCONEL, in accordance with the provisions of this law.
The administrative, judicial and arbitration processes, which are in the process of the National Electricity Council, CONELEC, will be assumed by ARCONEL, from the date of their integration.
The members of the current Board of Directors of the National Council of Electricity, CONELEC, shall cease in its duties upon entry into force of this law.
The Interim Executive Director of the National Electricity Council, CONELEC, shall exercise the functions of the Executive Director of the Regulatory Agency and Control of Electricity, ARCONEL, until it is legally replaced, in accordance with the provisions of this law.
The public servants of the CONELEC who have been fulfilling functions in matters related to the privileges that remained in the CONELEC and that
under this law they pass to the Ministry of Electricity and Renewable Energy, they will pass through administrative transfer to the Ministry maintaining their remuneration, through selection process.
The Ministry of Electricity and Renewable Energy will adjust its structure and organic regulations to the new ones.
resources of the budget of the current National Council of Electricity-CONELEC, will become part of the budget of the Agency for the Regulation and Control of Electricity, ARCONEL.
Until the allocation and the resources from the General Budget of the State for the operation of the Agency for Electricity Regulation and Control, ARCONEL, are realized, the contributions made to the Council will be maintained. National of Electricity, CONELEC, the Agents of the electrical sector, under the same modality of the year immediately before.
Decima.-From the Corporation National Center for Energy Control.- The staff who currently work in the Corporation National Center for Energy Control, CENACE, through selection process continue to provide its services to the NATIONAL ELECTRICITY OPERATOR; its stability, individual rights and working conditions shall be respected and recognised in force for the enactment of this law. The classification of servers and workers shall be carried out in accordance with the Law, the change of the legal regime applicable to the staff is not a bad dismissal nor will it be subject to compensation or any kind of compensation from the National Operator of Electricity, or the Ecuadorian State. In the event of retirement, eviction or untimely dismissal, account will be taken of the years of service that were provided at the National Center for Energy Control, added to the time of service in the institution that is created, with the limits
the Ministry of Electricity and Renewable Energy, within a period of no more than 180 days from the enactment of this law, shall approve the organic structure, salary scales, Organic regulation and functional regulation of the National Electricity Operator, CENACE.
All the assets, assets and liabilities of the National Energy Control Center, CENACE, will become part of the patrimony of the institution of public law created by this law, called the NATIONAL ELECTRICITY OPERATOR, CENACE, in accordance with the provisions of this law.
The administrative, judicial and arbitration processes, which are in the process of the National Center for Energy Control, CENACE, will be undertaken by the OPERATOR NACIONAL DE ELECTRICIDAD, CENACE, created by this law.
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The Corporation's assets will be transferred to the National Electricity Operator, CENACE.
The Board of Directors of the National Energy Control Center, CENACE, will cease in their duties upon entry into force of this law.
The Executive Director will become Executive Director of the National Electricity Operator, CENACE and will continue in extended functions until legally replaced.
Tenth First.-Internal Regulations.- Within one hundred and eighty days (180), counted from the publication in the Ofi cial Register of this law, the Agency for Regulation and Control of Electricity ARCONEL and the National Operator of Electricity, CENACE will issue all the internal regulations necessary for its normal operation.
Tenth Second.-Companies included in the scheme provided for in the Constituent Mandate No. 15.- For the companies mentioned in the Mandate Constituent No. 15, in the Third Transitional Provision, first indent, and in the Second Transitional Provision number 2.2.1.5 of the Organic Law of Public Enterprises, the Ministry of Electricity and Renewable Energy, within three hundred Sixty days (360) days, counted from the expedition of this law, shall carry out all the actions that are necessary, for the purpose of which they are structured as public companies, for which, will consolidate in their favor the stock package.
Once the entire share package in favor of the Ministry of Electricity and Renewable Energy, these companies will be dissolved without liquidation and will be transformed into public companies.
It is for the Ministry of Electricity and Renewable Energy to request the Ministry of Finance for the economic resources that they must come from the General Budget of the State in order to acquire the shares and contributions for future capitalization to be maintained by decentralized autonomous governments, private shareholders and other shareholders at the nominal value of books.
The companies mentioned in the Transitional Provision Third, first indent of the Constituent Mandate No. 15 and in the Transitional Provision Second number 2.2.1.5 of the Organic Law of Public Enterprises, within 15 days of the validity of this law, notify the Ministry of Electricity and Renewable Energy The nominal value in books of the shares and contributions for future capitalization (a) to the extent that within the maximum period of 180 days from the notification referred to above, the share package in favour of such a State Portfolio is acquired and consolidated. In the event that the companies that consist in the Third Transitional Provision, first paragraph of the Constituent Mandate No. 15 and in the Second Transitional Provision number 2.2.1.5 of the Law
Organics of Public Enterprises there are shareholders that They belong to public institutions of the Central Government and to public utilities in the electricity sector. These actions will be free of charge to the Ministry of Electricity and Renewable Energy.
The Ministry of Electricity and Renewable Energy will be able to pay the shares and contributions for future capitalizations to the autonomous governments
addition,
payment to the shareholders of the electricity companies will have to include the mechanism of compensation for the debts. pending the maintenance of the State and/or the government contributions to infrastructure works that are executed or executed by the autonomous decentralized governments; likewise, the payment to the shareholders of the electricity companies will be possible through the mechanisms or instruments that the Ministry of Finance is defending.Yes a year of validity of this law the decentralized autonomous government will not proceed to the transfer of the domain of the actions once formulated the mechanism of compensation for the outstanding debts that maintain with the State and/or the contributions In order to consolidate the stock package, the Board of the company will provide its legal representative who, verifi the value in books of the actions and the compensatory works, proceed to issue new actions and register them in the Book of Actions and Shareholders in favor of the Ministry of Electricity and Renewable Energy, as well as to annul the old actions, not requiring other requirements or procedures for this effect. This decision may be challenged in the judicial way.
Tenth Third.- Companies that are held as public limited companies.- The distribution power companies that apply to this law are maintained as companies. The State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the Republic of the Republic of the Republic of the Republic of the Republic of the Republic of Spain in the same, with resources from the General Budget of the State.
Fourth.-FIMFEISEH.- The debts maintained by companies in the electricity sector that originated in the FEISEH established in Article 7 of the Organic Law of Creation of the Ecuadorian Investment Fund in the Energy Sectors The FEISEH oil company is extinguished and will be counted as capital contributions or future capitalization, as appropriate, in favor of the Ministry of Electricity and Renewable Energy, for which the Ministry of Finance will implement the actions that correspond to that fi n.
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REFORM PROVISIONS
FIRST.- Remove the words "and ordinances" from the first paragraph of Article 40 of the Law Organic Consumer Defense.
SECOND.- In the first article of Article 479 of the Organic Code of Territorial Organization, COOTAD, after the words "of public services" delete the grammatical sign (.), in its place incorporates the grammatical sign comma (,) and then incorporate the words " a THIRD.
THIRD.- In Article 32 of the Fire Defense Act, replace the item immediately following the constant numerals of the same by the following:
" The Tribute This article may be charged by the power companies prior agreement approved by those and the respective value may be collected through an invoice independent of that which establishes the cost of the electric service ".
DEROGATIONS
Repeal all legal rules of equal or lesser hierarchy that are or are not in compliance with the provisions of this law.
In particular, repeal the following rules:
• The Law of Electricity Sector Scheme, published in the Supplement to the Ofi cial Register No. 43 of 10 October 1996 and all its reforms.
• The General Regulation of the Electricity Sector Regime Law, published in the Second Supplement
of the Ofi cial Register No. 401 of 21 November 2006, and all of its reforms, in so far as they oppose this law and Until the general regulation of this is issued.
• The Constituent Mandate No. 9 approved by the Constituent Assembly of Montecristi, on May 13, 2008.
• The Constituent Mandate No. 15 approved by the Constituent Assembly of Montecristi on July 23, 2008.
• The Ministerial Agreement No. 151 of the Ministry of Energy and Mines of 5 October 1998, published in the Ofi cial Register No. 55 of 27 October 1998.
• The exemption provided for in the third general provision of the Organic Law on Intercultural Education published in the Second Supplement to the Register Ofi cial No. 417 31 March 2011 in respect of the value of consumption of the electrical energy by the national educational authority.
FINAL DISPOSITION
The provisions of this law and its reformatory and repeal, shall enter into force from the date of its enactment in the Ofi Register
Given and subscribed to the headquarters of the National Assembly, located in the Metropolitan District of Quito, province of Pichincha, eight days of the month of January of two thousand fifteen.
f.) GABRIELA RIVADENEIRA BURBANO, President.
f.) DRA. LIBYA RIVAS ORDONEZ, General Secretariat.
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