Bill 537.

Summary.

The bill would add Article 84-A to Law 6 of February 3, 1997. For rural electrification, it directs the Executive Branch (Órgano Ejecutivo), through the Rural Electrification Office (Oficina de Electrificación Rural), to establish a technical and social criterion for extending electricity distribution infrastructure. The network would extend at least ten kilometers (10 km) beyond its last existing point to encompass the homes, communities, or settlements of the rural population. The distance would be measured in a straight line from the nearest connection point.

Through Article 93-A, the bill would prohibit public electricity service providers from requiring security deposits, bonds, or any other advance payment as a condition for connecting, reconnecting, or continuing service in rural areas. In other parts of the country, security deposits could not be increased suddenly or unilaterally, or without a duly justified objective reason. Any adjustment would require prior approval from the National Authority for Public Services (Autoridad Nacional de los Servicios Públicos) and notice to the user a reasonable time in advance.

The amendment to Article 123 recognizes the distributor’s and customer’s right to have consumption measured using instruments made available by technology, with consumption remaining the main component of the price charged to the customer. Measurement would have to be actual, effective, and verifiable. Estimated readings, historical averages, consumption projections, and other methods that do not reflect the customer’s actually recorded consumption would be prohibited. If, for a period and without an act or omission by either party, consumption cannot reasonably be measured with instruments, any exceptional method would have to reflect actual consumption and avoid higher charges or economic harm. It could be applied only under rules previously established by the distributor and approved by the Regulatory Authority (Ente Regulador).

The new article would make local governments responsible for tree pruning and vegetation management in rural areas. They would coordinate beforehand with the distribution company, which would set the technical criteria needed to protect the safety of the electricity network. Municipal costs, fees, or taxes arising from that work would form part of local government revenue under the applicable municipal and tax rules. The bill restates its amendments and additions to Law 6 of February 3, 1997 and provides that the proposed law would take effect on the day following its promulgation in the Official Gazette.

The provisions concern the Executive Branch, the Rural Electrification Office, the National Authority for Public Services, the Regulatory Authority, and local governments. They would affect distribution companies and other public electricity service providers, their customers and users, and the rural homes and communities covered by the proposed network extension.