Bill 389.

Summary.

The bill aims to achieve 100% electrification in districts where hydroelectric plants supply the national system. It defines full electrification as a continuous electricity supply to every home, institution and production facility in the district. It also defines a District Electrification Plan as a document setting out objectives, a timetable, resources and beneficiary communities. Its glossary identifies the Public Services Authority (Autoridad Nacional de los Servicios Públicos, ASEP) as the body supervising ETESA and distributors, and describes ETESA as the electricity transmission concessionaire. It defines corporate social responsibility as actions intended to provide direct benefits to communities affected by the projects.

The proposed measures follow principles of equity, efficiency, participation, social responsibility and sustainability. The bill provides for access to electricity without discrimination for residents of the districts concerned. It requires consultation with local communities when electrification projects are planned, efficient use of resources, rational use of energy and respect for the environment. It also calls for ETESA and generating companies to contribute actively to the development of affected communities.

Generating companies, in coordination with ASEP and distributors, would have to prepare a District Electrification Plan for each district with hydroelectric plants and ensure that no community, corregimiento (district) or hamlet remains without electricity. They would have to submit an annual timetable of electrification targets to ASEP within six months. The bill gives them a maximum of two years from its entry into force to ensure full electrification. Projects could be financed through dividends paid to the State by generating companies, contributions from hydroelectric companies under their corporate social responsibility commitments, and state funds for energy and rural development. Communities within a radius of ten kilometres of a hydroelectric plant would receive priority for connection.

If generating companies or distributors fail to comply, ASEP could impose fines of up to B/. 500,000 for each year of noncompliance and temporarily suspend new concessions until full electrification is achieved. The Executive Branch would have to issue implementing regulations within a maximum of six months after promulgation. ASEP would monitor progress under the district plans quarterly. The first inspection for noncompliance would take place one year after promulgation, with penalties applied where warranted. The bill provides that the law would enter into force upon promulgation.

The public entities involved in these provisions are the Public Services Authority (Autoridad Nacional de los Servicios Públicos, ASEP), ETESA and the Executive Branch. The provisions could concern electricity generation and distribution companies, communities in districts with hydroelectric plants, their institutions and production facilities, and the energy and rural development sectors.