Draft bill 174.

Summary.

The draft bill proposes amending Law 15 of 2001, which governs subsidies for basic or subsistence consumption by public electricity service customers. Its statement of reasons places the proposal in the context of rural water systems: Rural Aqueduct Administrative Boards (Juntas Administradoras de Acueductos Rurales) and Integrated Rural Aqueduct Boards (Juntas Integradas de Acueductos Rurales) use electricity to supply drinking water to communities that organize their own service outside the coverage of the National Institute of Aqueducts and Sewers (IDAAN). The operative provisions bring certain community organizations within the subsidy definitions and set out their eligibility and exemption from the contribution that funds it.

Art. 1 replaces the definitions in Article 2 of Law 15 of 2001. It defines a customer eligible for the subsidy as either an individual or a nonprofit community organization serving the public interest by supplying drinking water, provided that the customer uses the public electricity service under a contract or supply agreement with a distribution company and has qualifying basic or subsistence consumption. For individuals, the limit is 100 kWh; for community organizations, also called Rural Boards, it is 1,500 kWh. Both limits apply to 30 calendar days and are adjusted proportionally when the billing period is longer or shorter.

The same article defines the subsidy as financial assistance applied directly by the distribution company as a discount on the customer's bill. Its amount is equivalent to a percentage of the eligible customer's monthly bill for electricity consumption alone. Supplementary tariff charges and late-payment interest included in the bill are excluded from that calculation. These definitions connect eligibility to the customer's status, the contracted supply and the consumption recorded during the billing period.

Art. 2 amends Article 4 of Law 15 of 2001 on funding for the subsidy. It provides that final customers consuming more than 500 kWh per month, including large customers, contribute up to 0.6% of their monthly billing for energy and capacity. It exempts the specified community organizations from that contribution when their consumption does not exceed 1,500 kWh in 30 calendar days. Other customers' contributions must appear clearly and separately on their bills.

For regulated and unregulated customers served by a distribution company, the contribution forms part of the monthly electricity bill. If an unregulated customer is connected to a distributor but buys from another market participant, the contribution is charged separately on the bill for use of the distribution system. Where a customer is connected directly to a transmission company or generator, it is charged alongside transmission charges or the purchase of electricity and capacity. Within a distribution concession area, the supplier applies that distributor's subsidy charge and remits the amount collected to it each month. Outside those concession areas, the supplier applies the arithmetic average of the distributors' charges and remits the collected amount to them in equal shares. Regulated and unregulated community organizations must submit an updated certificate of their current status each year, issued by the Ministry of Health (Ministerio de Salud), to receive the benefit.

Art. 3 identifies Articles 2 and 4 of Law 15 of February 7, 2001 as the provisions amended, and Art. 4 provides for commencement upon promulgation. The proposal concerns the Ministry of Health (Ministerio de Salud), the Rural Aqueduct Administrative Boards (Juntas Administradoras de Acueductos Rurales), the Integrated Rural Aqueduct Boards (Juntas Integradas de Acueductos Rurales) and the National Institute of Aqueducts and Sewers (IDAAN). Its provisions could also affect rural communities, electricity users, distributors, transmission companies, generators and supplying agents.