With the objections of all the benches, the urgent bill on energy competitiveness will go to the second debate in the National Assembly, and in the debate the members of the parliament asked the Committee for Economic Development to collect the objections presented in the first debate and not waste time. in the debate if the text initially sent by the Executive Committee is insisted upon.

President of the Commission for Economic Development Valentina Centeno from the state sector, He pointed out that the project aims to promote energy activity as a strategic pillar of the country’s economy. And if this law is not approved, he warned, until 2027 “we will continue to produce the same 28,864 gigawatts per hour.” He said that as of 2021, there is already a deficit and that demand is estimated to be 38,663 gigawatts.

The National Assembly enters the first debate on the emergency project of the executive power on energy competitiveness

Regarding taxes, Centeno said that this emergency law does not mean a big package for the pockets of Ecuadorians, on the contrary, it brings incentives and incentives to switch to renewable and clean energy; To this end, it is proposed that the import of agricultural machinery has a tariff rate of 0% when it uses clean energy, and a 100% deduction is proposed for all costs in the renewable energy self-sufficiency system, whereby any company that supplies its own electricity will be able to pay a lower tax on income.

Likewise, the project proposes a 0% VAT rate on all solar energy materials and systems, which includes panels, charge controllers, batteries and wiring.

He pointed out that the law opens the door to private investments in the entire energy chain, i.e. production, transmission and distribution of energy. And that is what keeps the country behind, he said.

The norm under discussion envisages the simplification of procedures and bureaucracy for investment in the energy chain, since the competence has been returned to the National Agency for Regulation and Control of Energy to issue authorizations and environmental permits, since currently in Ecuador only environmental permits for Generation projects can take up to five years, and the standard under discussion aims to cut the delay in half.

He explained that the changes in the emergency law will not mean an increase in the price of electricity, on the contrary, they want to supply energy to 124 thousand families that do not have energy.

Vice President of the Development Desk, Blasco Luna (RC), He warned that his party agrees to allow the participation of the private sector in investments in new production, distribution and commercialization projects, but it must be guaranteed that this will be under the leadership of the state and not of free will.

As for investment in new hydropower projects, Luna added, the participation of sovereign governments that can provide the service at a lower interest rate and in the long term should be allowed.

This law cannot lead to an increase in electricity prices and pointed out that this law cannot guarantee the creation of free zones again, in the production, distribution and circulation of energy, the creation of free zones was already approved in the first law. urgent and this change will not be supported.

First Vice-President of the National Assembly Viviana Veloz (RC), He presented seven comments on the project, in which he pointed out that the state must continue managing aspects of the distribution and service of public lighting, and asked to reconsider the text related to the energy price, because the reform represents incentives for those who supply themselves. this resource, which in practice could mean that industrialists pay less for energy consumption, and that households increase their prices.

Regarding the participation of private initiative in the commercialization and distribution of energy in an exceptional way, legislator Veloz said that the provisions of Article 316 of the Constitution, which establishes the order of priority for participation in the sector, must be taken into account. Therefore, the participation of mixed economy companies must be analyzed first, followed by the private sector.

His coideario, Leonardo Berrezueta, He said that there is a fear in the law that private investments in transmission and distribution of electricity are focused on exceptionality and that then it becomes a general rule, therefore it must be regulated that private investment has deadlines, not longer than six months.

The leader of the PSC, Vicente Taiano, pointed out that the law creates interesting incentives for more alternatives in terms of production, and that he will propose changes, for example in the non-payment of interest for electricity service; Since the bloc believes it is important to go beyond the provinces of Esmeraldas and Manabí, the agricultural sector should benefit.

Luzmila Abad from the Pachakutik movement explained that this law will enable the collection of overdue loans and that these funds should be invested in energy transmission and distribution projects, and it is expected that this will not represent a change in energy prices, even worse that this law is a step towards the privatization of energy.

The representative of Morone Santiago indicated that an inspection must be opened for public companies engaged in the production and distribution of energy.

He added that in the midst of the crisis, two concessions for the production of hydropower were approved in his province, but this did not lead to the development of the province because it is still the population with the highest rate of unemployment and violence against women and the family.