Key Benefits:
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
1
___________________________________________________________________ LEGISLATIVE INDEX
DECREE NO 404.-
THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR,
WHEREAS:
I. That it is the duty of the State to promote economic and social development by increasing production, productivity and rational utilization of resources;
II. That the State should encourage and protect private initiative, within the necessary conditions to increase national wealth and ensure the benefits of the country's greatest number of inhabitants;
III. That in order to guarantee citizens the provision of essential services to the community, it is necessary to establish legal provisions that allow the State, in accordance with the current constitutional framework, to obtain such services, under the best conditions; and,
IV. That at present it is necessary to create a state institution of autonomous nature of public service without profit, that is to be rectoring and normative of the national energy policy, with the objective to encourage the good use and rational consumption of the Energy sources;
BY TANTO,
in use of their constitutional powers and at the initiative of the deputies: Ruben Orellana Mendoza, José Orlando Arevalo Pineda, José Francisco Merino López, José Rafael Machuca Zelaya, José Antonio Almendariz Rivas, Mario Antonio Ponce Lopez, Elizardo Gonzalez Lovo, Luis Roberto Angulo Samayoa, Alejandro Dagoberto Marroquín, Sandra Marlene Salgado García, Alex René Aguirre; and with the support of the Deputies: José Salvador Arias Penate, Mario Marroquín Mejía, Roberto José d' Aubuisson Munguía, Manuel Vicente Menjívar Esquivel, Francisco Roberto Lorenzana, Blanca Noemi Coto Estrada, Carlos Rolando Herrarte and Hector Miguel Dada Hirezi.
DECCRETA, the following:
LAW OF CREATION OF THE NATIONAL ENERGY COUNCIL
TITLE I
CHAPTER I PROVISIONS FUNDAMENTALS
Creation
Art. 1.-Create the National Energy Council, hereinafter referred to as "The Council", as an Institution of Public Law, with legal personality and own patrimony, with autonomy
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
2
___________________________________________________________________ LEGISLATIVE INDEX
administrative, budgetary and technical for the exercise of the privileges and duties provided for in this Law and the other applicable provisions.
The Council shall have its seat in the capital of the Republic and shall liaise with the Executive Body through the Ministry of Economy.
Council will be the top authority, chancellor, and policy on energy policy.
Purpose
Art. 2. The Council shall aim at the establishment of the policy and strategy to promote the efficient development of the energy sector.
Objectives
Art. 3.-The Council will have the following objectives:
a) Develop short, medium and long-term planning for energy; as well as the corresponding Energy Policy of the country;
b) Fostering the existence of frameworks (c) Promote the effective functioning of the energy markets by the competent institutions;
c) Promote the use of energy markets by the competent institutions; rational energy and all the necessary actions for the development and expansion of resources (d) To promote the integration of regional energy markets, on the basis of free competition and fair treatment,
the light of the environmental protection policies issued by the competent
; equitable and non-discriminatory of the various actors and market players.Privileges
Art. 4.-For the fulfilment of its objectives, the following powers shall be assigned to the Council:
a) Develop Policy, establish strategies and indicative plans for the short, medium and long term for the development of the energy sector;
b) Follow up on energy policies and strategies, and monitor the plans of the sector's institutions, comply with them;
c) Promote the approval of laws and regulations of the energy sector, in coordination with the competent authorities;
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
3
___________________________________________________________________ LEGISLATIVE INDEX
d) Develop the policy of the system of subsidies in the energy sector and propose it for approval to the Council of Ministers;
e) Develop the National Energy Balance, which includes information on the structure and functioning of the Country energy sub-sectors;
f) Supporting authority competent in the subscription of International Agreements and Agreements, linked to the energy sector;
g) To conclude contracts under the respective law intended for the performance of their duties;
h) Require the institutions and entities that carry out activities in the energy sector, information relevant to the performance of their functions; those that will be required to deliver the requested information;
i) Establish strategies for the satisfaction of the demand for the supply of electricity and fuels in the various regions and social sectors;
j) Promote the technological development of the energy sector;
k) All the other powers that this law and the regulation entrust to it concerning the good march and development of the energy sector.
CHAPTER II ADDRESS
Administration
Art. 5.-The powers and powers that this law points to the Council shall be exercised by a Board of Directors and an Executive Secretariat.
Composition of the Board of Directors
Art. 6.-The Board of Directors shall consist of:
a) The Holder of the Ministry of Economy;
b) The Technical Secretary of the Presidency or who does his or her times;
c) The Holder of the Ministry of Finance;
d) The Holder of the Ministry of Public Works, Transportation Housing and Urban Development;
e) The Holder of the Ministry of Environment and Natural Resources;
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
4
___________________________________________________________________ LEGISLATIVE INDEX
(f) The Holder of the Consumer Ombudsman.
The Board of Directors shall be chaired by the Minister of Economy and, failing that, by the holder who follows in the order of the above mentioned literals.
The Deputy Minister of the -the Substitute, who may attend the sessions of the Owners, with a voice but no vote, except in the absence of its owner. In the case of the Technical Secretary of the Presidency, it will be the Technical Sub-Secretary who will supply him in the sessions, for the case of the Holder of the Consumer Ombudsman, will be his deputy.
Sessions
Art. 7. The Board of Directors shall meet at least once a month or when circumstances so require, for the effective performance of its functions. It may also meet at the initiative of the Executive Secretary or at the request of two or more of its members.
Any session shall be held at the place to be determined in the call, which shall be communicated to the members of the Board of Directors. with not less than forty-eight hours in advance of the day and time of the session in question, except in cases of urgent need.
The Board of Directors may be held without prior notice provided that all its members are
Resolutions
Art. 8. The quorum for the Board of Directors to be validly sessioned shall be formed by four of its owners or in their absence the alternates. Each of the members who own the Board of Directors or who will do their times, will have the right to vote.
The resolutions will be adopted by a simple majority of the Board of Directors, in case of a tie, who will chair the session of the Board Directive will have a quality vote. No resolution of the Board of Directors will be adopted with less than four votes.
Powers of the Board of Directors
Art. 9.-The Board of Directors shall have the following powers:
a) Approve, the annual operational plan and the draft budget and its amendments, in accordance with the respective law;
b) Appoint a Standing Advisory Committee, for the performance of its functions, which may be composed of representatives of public sector entities, the private sector, academic institutions, guilds, and non-governmental institutions, among others. The regulation of this Law will determine how such entities will elect their respective representatives.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
5
___________________________________________________________________ LEGISLATIVE INDEX
c) Request the collaboration of the various public sector institutions, private or non-governmental organizations specialized in the field, according to their competence, for the fulfillment of the objectives of this Law;
d) Approve the internal organisation of the Council and its amendments establishing the hierarchy and salary levels of the staff, responsibilities, responsibilities and functions;
e) Elaborate the Memory of the activities developed by the Council;
f) All those attributions enunciated in the This Act, and other administrative matters, are required for compliance with the objectives of the Council.
CHAPTER III ADMINISTRATION
Executive Secretary
Art. 10.-The Management of the Council, will be in charge of an Executive Secretary, who will be appointed by the Board.
The Executive Secretary will be the Council's top technical officer and will be the technical and administrative officer of the Board. The performance of the Board and its staff.
Requirements to be Executive Secretary
Art. 11.-To be Executive Secretary the following requirements are required:
a) Being a Salvadoran by birth;
b) Being over thirty years of age;
c) Being of recognized honorability and probity;
d) Poseer title (e) No conflict of interest with the office;
f) Solvent with the Public Finance and the Municipality of his residence;
g) No conflict of interest with the office;
f) have been convicted of intentional crimes.
Inabilities
Art.12.-They will not be able to perform the position of Executive Secretary the spouses or relatives within the fourth degree of consanguinity or second degree of affinity of the members of the Board of Directors.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
6
___________________________________________________________________ LEGISLATIVE INDEX
Executive Secretary Privileges
Art. 13.-The position of Executive Secretary, will be held in full time in the main offices of the Institution.
The duties and duties of the Executive Secretary are:
a) Meet the agreements and instructions of the Board Directive and to carry out the acts and functions delegated to it in the exercise of its powers;
b) Propose to the Board of Directors, the annual operational plan of the Council; as well as any other matters requiring the study or Board resolution;
c) Preparing the draft Council budget under the Law relevant, for its approval as well as any modifications required;
d) Propose to the Board of Directors the internal organisation of the Board and its modifications;
e) Directively to the Council, subject to the agreements and instructions adopted by the Board of Directors;
f) to attend as Secretary without the right to vote, to the sessions of the Board of Directors and to adopt the providences and measures that require its operation;
g) Report to the Board of Directors on the results of the Board's management, in accordance with the guidelines established by the same;
h) Name, promote, sanction, remove and license personnel in accordance with statutory and regulatory standards;
i) By delegation of the Board of Directors, conduct acts and to conclude the contracts necessary for the fulfilment of the objectives of the Council;
j) Promote and present the proposal for the Board of Directors, for the subscription of agreements with the different public institutions or private, or other national and international bodies, in coordination with the competent institutions;
k) Propose to the Board of Directors the National Energy Balance;
l) Dictate administrative regulations for the proper functioning of the Board;
m) Other than the Board of Directors Directive, this Law and its Regulations.
Legal Representation
Art. 14.-The President of the Board of Directors shall have the legal representation of the Council, who may delegate it with the authorization of the Board of Directors to the Executive Secretary and, in such a manner, shall correspond to it
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
7
___________________________________________________________________ LEGISLATIVE INDEX
to act on behalf of the same in the acts and contracts it holds, as well as in the judicial, extrajudicial and administrative proceedings in which it has an interest, in accordance with the instructions which the Board has received from the Board Directive.
The legal representative, may confer general powers or special, prior to the authorization of the Board.
TITLE II ECONOMIC AND FINANCIAL SYSTEM
Heritage
Art. 15. The assets of the Council shall consist of:
a) The resources that the State transfers to it, for the commencement of its operations;
b) The transfers of resources, which are annually determined in its budget;
c) Extraordinary contributions to be granted by the State for any concept;
d) Inheritance, legacies and national or foreign donations to meet the objectives of the Council;
e) The interests of the placement of your resources in the financial system;
f) The movable, real estate, and purchased securities at the beginning of their duties or during their operation.
The Council's budget will be annual, with annual liquidation.
Budget presentation
Art. 16.-The Council will present its budget and salary regime to the Ministry of Finance through the Ministry of Economy, according to its needs and objectives, so that the Ministry of Finance will incorporate it into the Draft Budget and the submit to the approval of the Legislative Body.
The budget shall cover the operating and investment expenses of the fiscal period to which it corresponds. Audit
Art. 17. The audit of the budget referred to in this Law shall be exercised by the Court of Auditors of the Republic, in accordance with the procedures laid down in the relevant provisions of the Organic Law of the Court of Auditors of the Republic of Republic and its applicable technical standards.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
8
___________________________________________________________________ LEGISLATIVE INDEX
External Audit
Art. 18.-Without prejudice to the audit of the Court of Auditors of the Republic, the Board of Directors shall contract annually the services of a specialized firm to carry out the Comprehensive Audit of its actions, the Board being the only one authority to receive the respective report. Internal Audit
Art. 19.-The inspection and surveillance of the operations and the accounting of the Council shall be carried out by an internal auditor appointed by the Board of Directors, which shall be a public accountant authorized to exercise that office.
TITLE III FINAL AND TRANSIENT PROVISIONS
Art. 20.-The President of the Republic shall issue the Regulations necessary for the implementation of this Law.
Art. 21.-The Board of Directors shall be empowered to carry out all the actions necessary for the implementation of the institution within a period of one year from the date of this Decree.
Art.22.-The Ministry of Economy shall to transfer to the Council the goods and resources it deems necessary to ensure its proper functioning, according to the respective legal procedure.
Art. 23.-This Decree will enter into force eight days after its publication in the Official Journal.
GIVEN IN THE BLUE HALL OF THE LEGISLATIVE PALACE: San Salvador, at the thirty days of August of the year two thousand seven. RUBEN ORELLANA MENDOZA,
PRESIDENT.
ROLANDO ALVARENGA ARGUETA, FRANCISCO ROBERTO LORENZANA DURAN, VICE-PRESIDENT. VICE PRESIDENT.
JOSÉ RAFAEL MACHUCA ZELAYA, RODOLFO ANTONIO PARKER SOTO, VICE-PRESIDENT. VICE PRESIDENT.
ENRIQUE ALBERTO LUIS VALDES SOTO, MANUEL ORLANDO QUINTEROS AGUILAR, SECRETARY. SECRETARY.
JOSÉ ANTONIO ALMENDARIZ RIVAS, NORMAN NOEL QUIJANO GONZÁLEZ, SECRETARY. SECRETARY.
ZOILA BEATRIZ QUIJADA SOLIS, SECRETARY.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
9
___________________________________________________________________ LEGISLATIVE INDEX
CASA PRESIDENTIAL: San Salvador, at the eighteen days of September of the year two thousand seven.
PUBESQUIESE,
ELIAS ANTONIO SACA GONZÁLEZ, President of the Republic.
Yolanda Eugenia Mayora de Gavidia Minister of Economy.
D. O. Nº 181 Took Nº 377 Date: 1 October 2007.
CGC/adar