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Government / Legislation TheBolivianGovernmenthascompletelyoverhauledthe structureoftheelectricindustry. WhiletheGovernment previously held direct control of the State enterprises involved, the State’s role now is limited to that of a regulatory agency. Superintendency of Electricity The Superintendency of Electricity, the entity with national jurisdiction, is responsible for regulating the activities of theelectricindustry. TheSuperintendencyofElectricity, on behalf of the Bolivian State, grants concessions to a legal entity to generate, distribute, or transmit electricity. The maximum term of a concession is forty (40) years. Law No. 1604 (December 21, 1994) The Electricity Law stipulates that “The activities related to the Electric Industry shall be governed by principles of efficiency,transparency,quality,continuity, adaptability and neutrality.” The Electricity Law removed day to day operation of the electric industry from the Government bureaucracies and instituted a framework for private initiative to fill the expected needs of the sector. The Government retained regulatory control of the sector. In addition, the Electricity Law fundamentally overhauled the tariff structure. The new structure allows generators to useamarginalcostpricingsystem. Tariffswilldirectly reflect costs related to location and peak/off-peak periods. Subsidies to low income consumers will be eliminated over a five year period. Article 5 of the law stipulates that the exploitation of renewable resources for the production of electricity are regulated by this law. Article 10 states that to engage in the activities of the electricindustry,foreigncompaniesmustformBolivian subsidiaries. No Specific Law for Geothermal The Electricity Law has not been enough to bring in private investment. Ageothermallawisneededtooutlinetherules of the game, and to increase private investment in developing Bolivia’s geothermal resources. Geothermal Sites / Projects Bolivia has an estimated 2,490 MWe of geothermal power potential. The objectives of the Bolivian Government vis-à-vis geothermal development, are to encourage private investment, promote regional development, expand and Geothermal Resources in Latin America & the Caribbean 131PDF Image | Geothermal Resources in the Caribbean and Latin America
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