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Management Market Electric (Adme). Creation.

Original Language Title: Administracion Mercado Electrico (Adme). Creacion.

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Legislative Power/ Eastern Republic of Uruguay
Published D.O. 27 Jun/997-NAº 24813

Act No. 16,832

UPDATE OF THE NATIONAL ELECTRIC SYSTEM AND CREATION OF THE ELECTRIC POWER REGULATORY UNIT-Uree

REPLACE ARTICLE 2A OF DECREE-LAW 14,694, ESTABLISHING A NEW LEGAL REGULATORY FRAMEWORK FOR THE NATIONAL ELECTRICITY SYSTEM AND CREATING THE IMPLEMENTING UNIT, WHICH WILL DEPEND DIRECTLY ON THE EXECUTIVE BRANCH

The Senate and the CA of Representatives of the Eastern Republic of Uruguay, meeting in General Assembly,

DECREE:


CHAPTER I

Freedom of generation

ArtAculo 1Aº.-Sustituyese the artAculo 2Aº of Decree-Law No. 14,694, of 1Aº of September 1997, by the following:

" ARTICLE 2Aº.-For the purposes of this law, the above mentioned transmission, transformation and distribution activities will have the public service as soon as they are fully or partially allocated to third parties on a regular and permanent basis, with the exception of the generation activity. This may be done by any agent, including for full or partial marketing to third parties on a regular and permanent basis, provided that in this last case I do so through the National Office of Cargas and according to the rules of the wholesale energy market. "



CHAPTER II

Power market administration

ArtAculo 2Aº.-Crate the executive unit of the Power Power Regulatory Unit, which will depend directly on the Executive Branch. The same will be led by a Commission composed of three members appointed by the Executive Branch.

3Aº.-This unit will have the following tasks:

1) Control compliance with this law and its regulations.

2) Dictate regulations on the security and quality of services provided, materials and devices eletctrics to use.

3) Dictate rules and procedures for measurement and billing of control consumption; and use of meters and switches and reconnection of supplies.

4) Advising Executive Power:

A) In terms of granting concessions, permissions, authorizations regarding activities of the electrical sector, as related to the monitoring of the agreements to be concluded by market players.

B) In the pricing of power selling rates to third parties by the Electricity service providers.

5) Constituency by drawing the Arbitration Tribunal that would address the conflicts arising from the participation of the agents. For such purposes, the third party shall be appointed by each party to the third party and to the other. By not mediating this agreement, the Power Regulatory Unit will be designated. The same shall be the case where one of the parties is in arrears to designate its Aetro.

6) Comply with all those functions that you entrust to the Executive Branch.

ArtAculo 4Aº.-Crate the Management of the Electrical Market (ADME), as a non-state public person, with the task of managing the wholesale energy market.

ArtAculo 5Aº.-The Management of the Eletctrico Market Administration will be in charge of a Directory of five members. They will be appointed: one by the Executive Branch, one by the National Administration of Usines and the Eléctrica Trasquests, one by the Uruguayan Delegation of the High Salto Joint Technical Commission, and the other two will represent the market players. The Executive Branch will regulate the procedure for the selection of the remaining members of the Board and decision-making.

The Directory will be integrated by four members until they are installed in the private generators with a power of at least 100 Mw. In the event of a tie the vote of its President will decide the vote.

Members of the Board will not receive any remuneration from the Management of the Power Market.

The regulation of the Executive Branch will provide for an arbitration system and the circumstances in which the agents of the wholesale energy market may occur.

ArtAculo 6Aº.-Sustituyese the artAculo 10 of Decree-Law No. 14,694, of 1Aº of September 1997, by the following:

" ARTICLE 10.-Crate the National Cargas Dispatch that will be operated and administered by the Management of the Electric Market according to what establish the law and regulation ".

ArtAculo 7Aº.-The Executive Branch will establish the rules to which the National Office of Cargas will be adjusted for the fulfillment of its functions of technical dispatch of the National Interconnected System, which will have to ensuring the transparency, reasonableness and fairness of its resolutions, including the following principles:

A) Allow the execution of contracts freely agreed between the parties, understanding the generators, distributors and large consumers.

b) Issue the required demand, taking into account the optimization of the National Interconnected System, based on recognition of energy and power prices according to the criteria and values set out in this law.

The agents of the wholesale energy market should engage explicitly to accept such criteria and values in order to have the right to supply or receive power not freely agreed between the parties.

ArtAculo 8Aº.-The Executive Branch will establish the economic dispatch rules that will apply to the National Cargas Dispatch for energy and power transactions, referred to in the literal B) of the Article 7Aº.

ArtAculo 9Aº.-The Executive Branch may provide that the Management of the Elected Market will arrive at the National Administration of Usines and Transfer Elected the services of the Interconnected System National.

Alternatively, the Management of the Eletctrico Market may acquire the National Administration of Usines and the Electrico Transmissions the goods that make up the National Office of Cargas that are understood necessary for its operation. The price and method of payment shall be agreed between the two parties.

The Executive Branch may bring forward to the Management of the Market the funds required for the acquisition referred to in this article, which will be reintegrated by the company with the result of the rate created by the Next item.

ArtAculo 10.-The budget of personal rewards and investments of the Administration of the Electric Market should be approved by the Executive Branch, after the Office of Planning and Budget, and be financed with the rate produced that will be applied to the transactions that are executed through the National Interconnected System.

Rate the National Cargas Dispatch that will be earned for each transaction that is executed through the National Interconnected System. The agents of the wholesale market of energy that define the regulation will be taxable and will be agents of retention or perception that the Executive Branch will designate. The sum of the fees will not exceed 2.5% (two to five percent) of the total amount of the supply, export or transit, and will be collected by the Management of the Eletctrico Market on the basis of settlement as required by the Regulation. The Executive Branch will fix the amount of the fee and will have the entire production of the fee, and should be allocated exclusively to the financing of the approved budget of the administration of the Elemictrico Market and the fulfillment of the This is an obligation that arises from what was established in the previous article. In the event of surplus registration, the amount of this fee will be reduced.


CHAPTER III

Power-to-power wholesale market

ArtAculo 11.-Crate a wholesale energy market that will function in the stages of generation and consumption, with shared use of the system of free access and competition for the supply to distributors and large consumers.

Will be agents of the wholesale market for power generation, generators, distributors, distributors and large consumers. The regulation will establish the power, energy and other requirements for the technical meters that you must meet in the final customer to be considered a great consumer.

Generators will be able to enter supply contracts directly with distributors and large consumers.

Such contracts will be freely negotiated between the parties. These provisions are applicable to the National Administration of Usines and Eléctrica Transmissions, as it is also a generator and distributor of electrical power.

ArtAculo 12.-Transmisers and distributors are required to allow non-discriminatory access by third parties to the power transmission capacity of their systems that is not compromised for to supply the contracted demand, under the conditions agreed by the parties and in accordance with this law and the regulations.

ArtAculo 13.-On condition of reciprocity, the Executive Branch may issue the regulation applicable to international contracts between public or private law firms, including the right to use The existing facilities for transmission and distribution of power, in the terms that the regulation establishes and with the maximum rates fixed according to the following Chapter.

ArtAculo 14.-Transmisers and distributors should comply with the minimum quality specifications for the electricity placed in their systems, as determined by the regulation.


CHAPTER IV

Rate Rate

ArtAculo 15.-The Executive Power, in the form provided in the artAculo 14 of Decree-Law No. 14,694, of 1Aº of September 1977, may set rates for each type of activity of the electrical industry. For such purposes, it should be necessary for companies to carry out more than one of the activities of the electrical industry that present economic results of management separate from the activities of generation, transmission and distribution, according to the rules that the effect sets.

ArtAculo 16.-The generators will receive their remuneration in the form of the energy and power sold in the wholesale energy market, calculated from the net values delivered. You must pay or charge, as appropriate, for the other services that you receive or lend to the system.

ArtAculo 17.-The maximum fees that you will receive and distributors for the use of their respective networks by third parties, approved in accordance with Article 13, should cover the costs Direct operations of the service, including the amortisation of the goods of use affected thereto, as a reasonable utility.

ArtAculo 18.-The applicable rates for the sale of power to third parties by distributors of the electricity service shall be set by the Executive Branch in accordance with the rules corresponding.


CHAPTER V

From the electricity utility

ArtAculo 19.-The public service of electricity is the regular and permanent supply of electrical power for collective use, carried out through distribution networks, in a service area and intended for consumption of the subscribers.

The distribution service zone is the geographical area in which the National Administration of Usines and Transfer Elementals acts as a distributor, in accordance with the provisions of the decree-law No. 14,694, of 1Aº of September 1977.

ArtAculo 20.-No subscriber will have the right to repeat against the distributor for the amounts due to be paid for the expansion of the power system.

In the case of the dealers, the works and improvements made to the end of the loan will be owned by the State.

ArtAculo 21.-Sustituyese the artAculo 12 of Decree-Law No. 14,694, of 1Aº of September 1977, by the following:

" ARTICLE 12.-No subscriber will be able to supply third parties with referrals from their facilities without the vendor authorization.

  Such authorization will still be irrevocable for future dealers "



CHAPTER VI

Tasks of the National Administration of Usines

and Electrical Transfers

ArtAculo 22.-Suspend literals A), H), J), and K) from artAculo 4Aº of Decree-Law No. 15.031, dated July 4, 1980, in the redactions given by the artAculo 27 of Law No. 16.211, of 1Aº of October 1991, and by the articles 265 and 266 of Law No. 16.462,11 January 1994, for the following purposes;

" A) Generate, transform, transmit, distribute, export, import, and market power for power in the forms and conditions established by this law. For the purposes of such purposes in the national territory, it may be accidentally or permanently linked to public or private entities, national or foreign, in compliance with the constitutional and legal provisions. in force in the field of state contracts.

  Without prejudice to the above mentioned above, the authorization referred to in the final articles of the article 188 of the Constitution of the Republic of the Republic is conferred on it so that, with the prior consent of the Executive Branch, it will participate in mixed-capital, public or private enterprises, provided that they have as their main object the installation of new generating plants or the realization of new transport lines, extending the transmission system to interconnect with the region's paAces.

  The procedures should ensure the publicity and equal treatment of the offerors and the decision of the body will be founded in a feasibility study of the resulting investment.

  You should contractually ensure the participation of state representatives in the respective directories. "

" H) Dispose of your movable, real estate, facilities, and all manner of rights to your property, including alienation, acquisition by any title, lease and constitution of any kind of rights, even the real ones, to all the effects related to their tasks. "

" J) Provide advisory and technical assistance services in the areas of your specialty and annexe, both in the territory of the Republic as abroad.

  For such purposes, it may be associated in an accidental or permanent way with other public or private entities, national or foreign, as well as to recruit or subcontract with them the complement of their tasks.

  In the areas of your specialty as in the annexe you can also provide services ".

" K) With the approval of the Executive Branch, participate out of borders in the various stages of generation, transformation, transfer, distribution and marketing of electrical energy, as in the activities annexed to the performance of the above described, excluding those that constitute activities assigned as monopoly to other Entes of the Status, directly or associated with public companies or private, national or foreign.

  All the activities, businesses and contracts necessary for the performance of their tasks, with the authorization of the Executive Branch, shall also be considered to be within this competence. "

ArtAculo 23.-Sustituyese the artAculo 3Aº of Decree-Law No. 15,031of 4 July 1980, for the following:

" ARTICLE 3Aº.-The National Administration of Usines and the Electrical Trasmissions shall have the task of providing the public service of electricity of agreement with the forecasts of the decree-law No. 14,694, 1Aº of September 1977, and amending.

  It will also have the task of performing any of the activities of the electrical industry. "

CHAPTER VII

General provisions

ArtAculo 24.-If the owner of the property is taxed for an easement imposed in favor of a power line, legally constituted in accordance with the provisions of this law and the href="areuelveref.aspx?Law, 10383//HTM"> decree-law No 10.383, of 13 February 1943, will deny the entry of the same to the staff responsible for carrying out the tasks directed to make it effective, the supplier of the public service of electricity will request the Judge of Competent peace the order to enter the taxed property in order to make the easement effective.

The supplier of the electricity utility should credit your request:

A) The legitimacy invoked.

B) The Executive Power decree that determines the easements to be constituted.

C) The resolution of the electricity service provider designating the affected premises by easements.

D) The constancy that the referred resolution was duly notified in accordance with the provisions of the Law No. 9,722, dated 10 November 1937.

E) The parcelary plans of the lAnea to be built properly inscribed in the General Directorate of the National Catastro Administration of State Infurniture.

ArtAculo 25.-Once the entry application has been filed, with the collections mentioned in the previous article, the Headquarters must have no more than the entry to the predium for the service provider The public will make the easement effective, committed to the Sheriff, who will be able to use the help of the public force for the fulfillment of this measure. In any case, it shall be safe to act for damages, as provided by the artAculo 2Aº of Decree-Law No. 10,383, of 13 February 1943.

ArtAculo 26.-Excluse to the National Administration of Usines and Transfer Eléctris of the application of the provisions of the second indent of the article 3Aº of Decree-Law No. 14,950, dated November 9, 1979, being entitled to fix the applicable rate of interest, which shall not exceed the legal limits.

ArtAculo 27.-ProhAbese the use of nuclear power in the national territory. No agent of the wholesale energy market may be able to carry out power supply contracts with nuclear generators or foreign generators whose plants pollute the national territory.

Room of Sessions of the CA of Senators, in Montevideo, on June 10, 1997.

HUGO BATTLE,
President.
Mario Farachio,
Secretary.

MINISTRY OF INDUSTRY, ENERGY AND MINING

Montevideo, June 17, 1997.

CA-mplase, acorsese recibo, comunAquese, publáquese e insáltese en el Registro Nacional de Leias y Decretos.

SANGUETTI.
JULIO HERRERA.

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Montevideo, Uruguay. Legislative Power.