By means of Executive Decree No. 32 of June 15, 2025 (the “Decree”), published on June 18, 2025, in the Official Register No. 62, the General Regulations to the Law on Public Electricity Service (“RGLOSPEE”) were amended. The Decree entered into force on June 18, 2025.
Below is a summary of the main amendments:
- High-voltage Disconnection. The National Electricity Operator is authorized to disconnect high-voltage consumers from the National Interconnected System (“SNI”) during periods of power generation deficit or rationing.
- Mandatory Generation. High-voltage consumers will be required to implement power generation systems to cover their demand by December 18, 2026. Any surplus energy may be injected into the SNI, subject to the regulations issued by the Electricity Regulation and Control Agency (“ARCONEL”).
- Direct Delegation. The Ministry of Energy and Mines (“MEM”) may directly delegate to the private sector the execution of electricity generation projects using non-conventional renewable sources (e.g., solar, wind, geothermal, small-scale hydro) or transitional sources (e.g., natural gas, nuclear, green hydrogen), provided such projects are not included in the Electricity Master Plan (“PME”) and their nominal capacity does not exceed 100 MW.
- Simplified Procedure. Private electricity generation projects using non-conventional renewable sources (with capacities between 10 and 100 MW) or transitional sources (up to 100 MW), not included in the PME and incorporating energy storage and interconnection networks, may be directly delegated through a simplified procedure.
- Public Selection Processes. The private sector may submit proposals to the MEM for electricity generation projects exceeding 100 MW or transmission projects that are not contemplated in the PME. These may be awarded through a public selection process (“PPS”), in which the proponent may participate and improve its bid under the terms of the respective PPS.
- Self-generation. Private self-generation projects will not require prior approval from the Ministry of Economy and Finance (“MEF”).
- Payment Guarantees. The State and/or public electricity distributors (the “Distributors”) may guarantee the payments to the private sector arising from concession contracts and/or regulated contracts through trusts, liquidity guarantees, contingency funds, or other similar mechanisms. In any case, approval by the MEF will be required.
- Payment Priority. Payments derived from commercial transactions related to regulated demand must adhere to the order of priority established by ARCONEL, with private generators and transmitters occupying the first position. Distributors must establish trusts to comply with this order by December 15, 2025.
- Assignment to financiers. Concession contracts may be assigned to financiers: (i) due to serious breach of payments and obligations by the concessionaire under the financing contracts; or (ii) due to breaches by the concessionaire of the concession contract. Financiers may assume the position of the concessionaire directly or through a third party approved by the MEM.
- No reversion. The assets of generators installed for self-supply, self-generators, cogenerators, and non-conventional renewable energy generators with a capacity of up to 10 MW will not be required to revert to the State.
Carlos Torres, Senior Associate at CorralRosales
ctorres@corralrosales.com
+593 2 2544144
Mario Fernández, Associate at CorralRosales
mfernandez@corralrosales.com
+593 2 2544144