The National Assembly approved the draft Organic Law on Energy Competitiveness, or better known as the No More Blackouts Law with 131 affirmative votes. The decision of this standard was sent as an urgent economic matter and was debated on January 10, 2024.
The No More Blackouts Law seeks to create mechanisms for investment in the energy sector with the implementation of projects that produce cleaner energy.
Also provide incentives for companies that save on energy consumption by installing their own electricity generation projects.
The Organic Law of Energy Competitiveness not only seeks to alleviate the tax burden, but also to ensure the electricity supply as an essential citizen service.
The objective is to guarantee that the daily activities of Ecuadorians do not stop, thus promoting the reactivation of the national economy.
Among the proposals of the Law, the following aspects stand out:
– Increase generation supply because the electrical energy needs of the residential, commercial and industrial sectors of the country grow annually, due to the high demand for energy.
– Promote private sector participation through planning of the electricity sector, conceived in terms of efficiency and opportunity.
– Waive interest for citizens, for the payment of the public electric energy service, which will allow debtors to comply with their obligations without incurring interest. This measure will help distribution companies have resources to improve their financial situation.
– Territorial development projects that will be financed with resources from public and private generating companies.
– Encourage the installation of self-generation systems with non-conventional renewable resources. Industries and businesses will be able to self-supply their energy to be more competitive and ensure their production chain is clean.
– Create a short-term market, where buyers and sellers voluntarily participate in transactions governed by the hourly price of energy, which provides flexibility to the electricity market; This will allow independence from regulated or bilateral contracts, and will promote a more efficient and adaptive dynamic.
– Create an Energy Efficiency Fund for the financing of different initiatives aimed at saving energy in the residential, commercial and industrial sectors.