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Incentives for the development of electrification in rural areas and small populations: law 788

By María Eugenia Jarquin Garcia, Jarquin Garcia - 15/05/2012
Incentives for the development of electrification in rural areas and small populations: law 788

 In Nicaragua, the political constitution establishes that it is the obligation of the State to promote, facilitate and regulate the provision of basic public services such as energy, communication, water, transport, road infrastructure, ports and airports.

With the publication in the official newspaper No. 60, law n° 788 came into effect on March 28th 2012, which contemplates some reforms and additions to three laws that regulate transmission and distribution of electrical energy and the respective controlling entities. The reformed laws complement each other and are the following: Law No. 583, Law creating the National Electrical Transmission Company ENATREL; Law No. 272, Law of the Electrical Industry and Law No. 290, Law of Organization, Competition and Executive Power proceedings. The reforms and addictions carried out, are directed mainly to establish organizational and functional changes on the National Electricity transmission company (ENATREL).

Notwithstanding, with article four of law 788, articles 6 and 38 of law no. 272 of the electric industry is reformed. Said articles have the objective of encouraging electrification in rural areas and others with low population, where no interest has been shown by any of the economic agents in participating in activities in the electrical industry. To achieve the objective, the articles determine that the State will assign the available financial resources and grant them to distributers to pay either totally or partially the investment of electrification projects that don’t have the adequate levels of profitability in rural areas with low population, and which are not contemplated in the Investment Program within its areas of concession or nearby.

The reforms strengthen said dispositions since they provide ENATREL with exclusive faculties so there can be coordinated planning with the Ministry of mines and Energy in the management and execution of plans, projects and programs of social benefit.

By María Eugenia Jarquin Garcia, Jarquin Garcia - 15/05/2012
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