Tariffs and privatization focus the debate on Ecuador39s energy law

Tariffs and privatization focus the debate on Ecuador's energy law

Quito, January 3 (Prensa Latina) The value of the electricity tariff and the transfer of some functions in the energy sector to the private sector focused today on the first debate of the bill on the subject in the National Assembly (Parliament) of Ecuador.

In the plenary session of the Legislature this Wednesday, members of the Assembly discussed President Daniel Noboa's proposal to overcome the country's energy crisis.

Parliamentarian Valentina Centeno of the ruling National Democratic Action Bloc (ADN) and chairwoman of the Economic Development Commission warned that the state will not be able to provide electricity to the population and businesses if the organic energy competitiveness law is not passed.

He also recalled that electricity production has been stagnating since 2018 without public or private investment, stressing that the regulations do not provide for an increase in the quota.

Citizen Revolution (RC) MPs Blasco Luna and Viviana Veloz commented that the executive initiative is not the solution to immediately end the blackouts.

Among his comments, Veloz said the national electricity operator should be managed by the state to prevent private parties from influencing electricity costs.

Mariana Yumbay, representative of the Pachakutik movement, criticized that the project envisages “putting into private hands what the state must fulfill” and emphasized that “energy is a right and not a commodity.”

In total, more than 50 members of the Assembly expressed their views on the wording of the provision. The document will be sent back to the Economic Development Commission to prepare a new report, which will later be presented to the plenary session for a second and final debate.

Due to the urgency, parliamentarians only have until January 19, 2024 to discuss, approve, amend or reject the proposal.

Ecuador is facing an energy crisis with power outages that have been temporarily suspended due to the drought and lack of timely investment and will resume on January 15, authorities and experts emphasize.

rgh/avr