Decree 517 of 2020 

April, 2020 - Carlos Umana

Provisions for electric power and fuel gas utilities, within the framework of the State of Economic, Social and Ecological Emergency.

The marketing companies that provide the public utilities of electric energy and gas through networks may defer for a period of thirty-six (36) months the cost of basic consumption or subsistence that is not subsidized to residential users of stratum 1 and 2 for consumption corresponding to the current billing cycle, and the billing cycle following the date of issuance of the Decree, without being able to transfer to the user any interest or financial cost for the deferment of collection.

This shall only be compulsory for companies commercializing public utilities of electric energy and fuel gas through networks.

However, in the event that a liquidity line is at a nominal interest rate of 0%, for the same term to which the collection of basic or subsistence consumption is deferred, these companies will be under the obligation to defer payment of energy and fuel gas consumption, even if they choose not to take it.

In the case of electricity commercializing companies in Non-Interconnected Areas, this liquidity line may be extended to the entire consumption caused in the billing cycles mentioned above.

It is important to emphasize that if these companies choose to take the previously mentioned liquidity line, they must offer a discount in the current billing cycle and in the one following the issuance of this decree, of at least 10% on the unsubsidized value of the corresponding invoice, for users of stratum 1 and 2 who make the payment of the invoice on the timely payment date.Those companies that do not offer this discount may only access the liquidity line at the nominal 0% interest rate, for 75% of the total amount to be deferred. However, no interest or financial cost derived from a mechanism to cover the deferral of the collection of the invoice may be transferred to the user.

In addition, the granting of the liquidity line will be done with the historical, consumption and unit cost data for the provision of the service according to the existing information in the Unique Information System (SUI).

In order to determine which of these companies may require the provision of guarantees for access to the liquidity facility, the multilateral or bilateral financial entity offering the liquidity facility must advance the risk analysis of each one of them.

In the event that guarantees are required, public utilities companies may deploy:

  • The assignment of the unsubsidized portion of accounts receivable or invoices due from users of any stratum
  • Subsidies caused or to be caused by the service
  • Any other sufficient guarantee for the financial institution, multilateral or bilateral, providing the liquidity facility

However, official or mixed public service enterprises will be exempted from the limits on State debt set forth by the applicable rules. In any case, they must comply with the debt authorizations contained in article 2.2.1.2.2.3 of Decree 1068 of 2015, added by Decree 473 of 2020.

This decree temporarily grants the faculty to the Energy and Gas Regulation Commission (CREG) to establish special schemes for deferring the payment of invoices. Also, it grants CREG the power to adopt measures, tariff provisions and special regulatory regimes it considers necessary, including those related to voluntary contributions. The foregoing applies as long as its purpose mitigates the effects of the State of Economic, Social and Ecological Emergency on users and agents in the chain of public utilities provision of electrical energy and fuel gas, and their complementary activities.

Such powers and extraordinary measures shall remain in force while the declaration of the Health Emergency is in force.

Similarly, the Ministry of Mines and Energy and its attached entities mayestablish the previously mentioned extraordinary measures without the need to exhaust the requirement of information of the regulation projects to the Superintendence of Industry and Commerce of which Law 1340 of 2009 and Decree 1074 of 2015 are about.

Nor will it be mandatory to comply with the requirements and deadlines for publicity and consultation of draft regulations provided for in Law 1437 of 2011 and Decree 1078 of 2015.

On the other hand, residential users of stratum 4, 5, 6, and commercial and industrial users, will be able to make a voluntary contribution aimed at granting economic relief to the payment of domiciliary public services of electric energy and fuel gas. Those who will benefit from this contribution will be defined by the Ministry of Mines and Energy through a resolution prior to its implementation.

To this end, public utilities must include in the bills of all users of strata 4, 5, 6, and commercial and industrial users, a value that includes an amount or percentage of the bill suggested as a voluntary contribution "Comparto mi Energía", without prejudice to the possibility that users contribute a different amount or percentage.

In the event of a surplus of resources, the Ministry of Mines and Energy may establish a special account in the Solidarity Fund for Subsidies and Income Redistribution.

Similarly, the Ministry of Mines and Energy may use resources from the Solidarity Fund for Subsidies and Income Redistribution - FSSRI, to directly recognize wholesale distributors of liquid fuels, the estimated cost of the electrofuel, based on the quota assigned by the ministry for the respective locations of the Non-Interconnected.

This cost will be subtracted from the total amount of subsidies assigned to the respective company, for the following periods of operation, until the amount disbursed is completed.

During the period of validity of 2020 and as long as cash and budget are available, the Ministry of Mines and Energy may

  • Assign early subsidies to electricity and fuel gas marketing companies with respect to their users in strata 1, 2 and 3, taking into account projections based on the amounts of historical subsidies allocated to users served in their respective commercializing markets.
  • To grant new subsidies for users strata 1 and 2 of the domiciliary public service of Liquefied Petroleum Gas, previous focalization according to the results given by the SISBEN in relation to the fuel used for cooking, in the same applicable percentage that to the users subsidized at the moment
  • Assign the subsidies for lower rates corresponding to 2019 to the marketing companies, without the need for a firm validation of the amounts.

However, before December 31, 2020, the Ministry of Mines and Energy must carry out the settlements and validations corresponding to advance subsidy payments that have been made. If there is a balance in favor, this value may be deducted from the following subsidies to the company providing the service.

Finally, it is established that, during the term of the declaration of the State of Economic, Social and Ecological Emergency, the territorial entities may assume all or part of the cost of the public utilities of electric energy or fuel gas of the users within their jurisdiction.

SEE DECREE 517 OF 2020

 



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