The government has already put into procedure its second draft law on the extraordinary economy: the Organic Law on Energy Competitiveness reached the National Assembly as soon as the Law on Economic Efficiency and Employment entered into force.

This new project uses the delegation of private companies for the activities of the public electricity service in exceptional cases, at a time when Ecuador is going through blackouts – which are suspended only for the Christmas and New Year holidays.

The National Assembly accelerated the processing of the second emergency law on energy competitiveness

When presented in the Assembly, the regime states that the aim of this law is to promote economic and energy production solutions in order to overcome the energy crisis – for which losses of more than 600 million dollars are predicted by the end of this year -, optimizing the management of public resources related with the power sector.

On the one hand, it is understood that this law seeks to allow private investments, and in the face of the “statist constitution, the delegation of private companies is proposed in exceptional cases”, when “if fiscal resources are scarce, the exception should be the use of public resources”, says the editor Weekly analysisAlberto Acosta Burneo.

On the other hand, the project will be evaluated to analyze that there is no privatization. Hydropower projects “belong to the state and what is required is that they be maintained as a public good and that they be improved.” We will never agree to the intention of privatization, new investors for new projects are welcome, but what the Government has must be strengthened, improved and remain in the hands of the Government and the people.” This was mentioned by the member of the assembly of the Civil Revolution, Gisella Garzón.

Daniel Noboa’s new law proposes the introduction of free zones for electricity production and infrastructure

One of the reforms that the urgent project proposes for the Law on Public Electric Power Service is that, in accordance with the planning framed in the Master Plan for Electrification, the state can delegate – exceptionally – to private capital companies and companies of the national and solidarity economy, participation in the activities of the public electric power service and public service lighting, through public selection procedures, in any of the following cases:

The state can also delegate the development of projects that use non-conventional renewable energies that are not included in the Electric Power Master Plan to private capital companies and national and solidarity economy companies.

In the case of electricity transmission at the national level, the project indicates that it will be carried out by the state through the appropriate public company, “and exceptionally, the participation of a private company and the national and solidarity economy, to which the provisions of this law and its regulations will apply. “

The Ministry of Energy can authorize a producer, self-producer, distributor, large consumer or end user to build a transmission network for their needs at their own expense.

Regulated and non-regulated consumers can install distributed generation systems solely for self-sufficiency, using non-conventional renewable energy (NCRE).

Delegations to private companies

Installation of additional energy through free zones

In the event of a state of emergency in the electricity sector or a state of emergency that necessitates the inclusion of additional electricity production and infrastructure, the private sector, through the representation of several companies in energy-free zones that are properly established as such, can establish production and/or electric transmission projects that enables us to meet national demand.

Interest forgiveness

The transitional provisions of the proposed law are planned to:

Deductions for additional savings