Draft bill 110.

Summary.

The draft bill establishes a prior procedure for administrative actions that produce a net increase in regulated electricity distribution and retail supply tariffs. It defines an increase by its effect on the final amount paid, and defines vulnerable users, the comments and responses matrix, and the tariff case file. The National Public Services Authority (Autoridad Nacional de los Servicios Públicos, ASEP) would conduct and decide the procedure. It would cover new tariff schedules, reviews of Maximum Allowed Revenue, extraordinary or periodic adjustments, changes to subsidies, and other actions that raise electricity bills. ASEP would assess the cumulative effect of adjustments made within twelve months to prevent their division into separate increases.

A distribution company, retailer or other applicant would file its request at least one hundred and twenty (120) calendar days before the intended effective date, except in substantiated extraordinary circumstances. The file would include technical, economic and legal grounds, proposed costs and estimated effects on tariffs. ASEP would have ten business days to check its completeness and could request one correction within a period of no more than ten business days. Once admitted, the file, timetable and participation channels would be made public, subject to individually justified restrictions for specific trade secrets. The methodology, recognized costs and effects by user category would remain public.

Institutional opinions would be technical and advisory, without displacing the powers attributed to ASEP by the Constitution and Law 6 of 1997. Consulted entities would have twenty business days to respond. Written public consultation would last no less than twenty business days, and at least one public hearing would be held after notice of at least fifteen calendar days. Where an increase had nationwide effects or affected several provinces, participation would be enabled outside the capital. ASEP would provide explanatory materials, bill simulators and guidance channels. Users could examine the grounds for an increase, submit comments and receive reasoned responses. They would also be informed of the estimated effect on their bills; ASEP would publish performance indicators and statistical information in open formats.

The assessment would consider legality, cost efficiency and prudence, economic and social effects, and service quality, continuity and sustainability. Investments supporting an increase would carry measurable targets, and cost recognition could depend on verified compliance. ASEP would publish effects by consumption band, user category, geographic area and vulnerability where data were available, and consider mitigation for vulnerable groups. A comprehensive report would precede the decision; a public matrix would explain how substantive comments were addressed. The final decision would state its grounds, accepted and rejected costs, and expected effects on users.

A decision authorizing an increase would be disclosed within five (5) business days of issuance and could take effect only after thirty calendar days from publication in the Official Gazette and on ASEP’s website, unless that period were shortened because of a declared, reasoned national energy emergency. Distribution companies would notify customers individually at least fifteen (15) calendar days beforehand. An increase applied without following the procedure would be unenforceable against users, and improper charges would be automatically refunded or credited. ASEP would sanction violations and review each authorized increase within twelve months after it took effect.

The bill adds a chapter on this procedure to Law 6 of February 3, 1997. ASEP would adapt its instruments, and the Executive Branch (Órgano Ejecutivo) would issue implementing regulations within six months of promulgation. Pending proceedings without a final decision would be adapted to the new rules, which would take effect six months after promulgation. The provisions concern residential users, vulnerable consumers, micro and small businesses, electricity distribution companies and retailers; they also involve the National Energy Secretariat (Secretaría Nacional de Energía) in publicizing decisions.