Marco Legal Del Sector Electrico Bolivia

President Arce Catacora announced that Peru was interested in Bolivian Law No. 1604 of 21 December 1994 on gas and electricity, which defined the principles, institutional organization, operational structure and economic model of the Bolivian electricity sector. Article 47°.- (Accounting and auditing) The Electricity Inspectorate will establish a single accounting system, which will be mandatory for all companies in the sector and will follow generally accepted accounting principles for the electricity industry. Annual external audit services contracted by electricity undertakings must be carried out by undertakings prequalified by the electricity supervisory authority. The annual audit report that these undertakings will submit must include, inter alia, the following aspects: compliance with this Law, the concession or licence contract, the quality of supply and the efficiency and effectiveness indicators established by the electricity supervisory authority. Electricity companies that have a concession or licence in the national interconnected grid and in isolated systems will have separate accounting systems. Distribution companies which directly own production facilities in accordance with the provisions of subsection (d) of Article 15 of this Law shall have a separate accounting system for Generation`s activity. Article 6°.- (Preservation of the environment) The exercise of the electrical industry is subject to the environmental legislation applicable to the sector. There is an urgent need to develop a new legal framework and long-term policy for Bolivia`s electricity sector©, especially if the country wants to drive the energy transition©. Article 68°.- (Repeal and repeal) The Law on Electricity approved by Supreme Decree No.

08438 of 31 July 1968 shall be repealed and other laws contrary to this Law shall be repealed on the date of entry into force in accordance with Article 76 of that Law. Article 7°.- (Free competition) Individuals or groups active in the electricity sector develop their activities within the framework of free competition, subject to the law. Repeal and repeal of the provisions of Law No. 1600 of 28 October 1994 on the Sectoral Regulatory System (SIRESE) and its Ordinances, Law No. 1604 of 21 December 1994 on Electricity and its Ordinances, and the Administrative Procedure Act (LPA) No. 2341 of 23 October 1994. April 2002 and its regulations; establishment of authorities for social supervision and control of transport and telecommunications, drinking water and sanitation, electricity, forests and land, pensions and enterprises; define its structure, competencies and authorities; and the abolition of general and sectoral superintendences. It provides for a specific procedure for reductions in the remuneration of electricity distributors and transporters. In its 2021 Public Accountability Report, the Ministry of Hydrocarbons and Energy highlights efforts related to the evaluation of energy sector policy, the updating of generation and transmission projects, the adoption of a new law on the electricity sector©© (the existing law dates from 1994) and the updating of standards. Bolivian solar projects of 310 MW by the horizon Article 62°.- (Financing the electrification of small populations and rural areas) The National Regional Development Fund will be responsible for the evaluation and approval of electrification projects for small populations and rural areas submitted by grassroots organizations. by municipalities or both on their own initiative.

These projects may be co-financed by municipalities and other public and private bodies. If the projects submitted by these organizations do not have a reasonable rate of return, the Fund shall grant preferential funds or grants, as appropriate, to enable the projects to be carried out. Article 73 °.- (Tariff provisions) For a maximum period of seven (7) years from the date of promulgation of this law, the Electricity Inspectorate establishes the modalities of application of the tariff provisions applicable to production concessions granted before the promulgation of this legislation. Article 44°.- (Easement procedure) The holder who requests the imposition of one or more easements will submit the corresponding application to the Electricity Inspectorate, which provides for the notification to the owners of the service good in accordance with the applicable legal provisions. The modalities of taxation of servitudes and recognition of indemnities and compensations are fixed by regulation. The legal framework for the activities of the electricity sector in the Republic of Bolivia, and in particular the Bolivian wholesale electricity market, includes: The most important legal instrument in the electricity sector at present is Law No. 1604 of 21 December 1994 on Electricity (LDE). The Act aims to increase efficiency in this sector, introduce competition and encourage investment.

The law establishes the restructuring of the electricity sector by redefining the roles of participants in the various activities of the industry, following the international trend and leaving room for vertical disintegration. Article 69°.- (Adequacy) Within a maximum period of eighteen (18) months from the date of promulgation of this Law, natural or collective persons participating in the activities of the electricity industry in the interconnected and vertically integrated national system at the time of promulgation of this Law, They must take legal measures, administrative and other necessary to adapt to the new structure established by this Act. Adjust. Within the same period, the Electricity Control Authority and the concessionaires will adapt existing concessions to the provisions of this legislation. Article 31°.- (Electricity supply contracts) In order to meet the obligation to satisfy all electricity demand under their concession, distributors shall conclude, under this Law, electricity supply contracts with generators at rates agreed between the parties. These contracts must cover at least eighty percent (80%) of the maximum demand in their jurisdiction for a period of at least three years. The percentage of mandatory contracts and the minimum duration may be amended by the electricity supervisory authority taking into account the development and functioning of the market. Supply contracts between generators and distributors must be concluded in accordance with procedures approved by the Electricity Inspectorate, subject to applicable rules. Article 74°.- (Transfer of shares) In order to comply with the provisions of Article No. 5 of this Law, the transfer of shares in public electricity supply enterprises, enterprises and entities of the public sector to natural or collective persons of the public or private sector is permitted.

However, the document, available at this link, points to a growing transmission system, noting that the sector “operates in an orderly manner and with relative transparency”. Article 61: (Electrification in small populations and rural areas) The State has the responsibility to promote electrification in small populations and in rural areas that cannot be served exclusively by private initiative. To this end, the Executive, through the National Regional Development Fund, will provide internal and external funding for electrification projects in small populations and rural areas, and will propose policies and strategies that allow the use of alternative energy sources to provide energy to small populations and rural areas. As part of an overall development policy in this sector. Article 60°.- (Executive action) Debts arising from the purchase and sale of electricity en bloc, from the use of electricity. investments by transmission and distribution companies and supply to regulated or non-regulated consumers are liquid and enforceable obligations; In this case, the unpaid invoice has the status of a provisional title and proof of debt to initiate an enforceable action after thirty (30) days after its notification with the invoice.