Geothermal Resources in the Caribbean and Latin America

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Geothermal Resources in the Caribbean and Latin America ( geothermal-resources-the-caribbean-and-latin-america )

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Lacking an umbrella law for the electrical sector, the Electrical Energy Regulatory Commission (CREE) is administratively andfinancially linked to the Ministry of Energy and Mines, and is funded from resources allocated through the annual budget and special fundsauthorizedbytheExecutiveBranch. Aproposedbill fortheelectricalsectorcontainsaprovisionthatwould strengthen the regulatory framework. A new bill introduced to the Congress of Venezuela in March 1998 established a definite regulatory framework for the electricity sector and created a national electricity board. Thenewlawwouldprovidethebasisfordetermining tariffadjustmentsbasedoncosts,andrequiresthe accounting separation of generation, transmission, and distributionforallmarketparticipants. Inthemeantime, buyers must participate in the absence of clear rules and rate mechanisms. Decree No. 1558, Normas Para La Regulación Del Sector Electrico (November 1996) The Electric Sector Regulatory Framework came into force at the end of 1996, and allows for the participation of private and independent power producers in the Venezuelan market. Thislegalmeasureisseenasthefirststeptothe eventual enactmentofanElectricPowerLaw. Organic Law of Concessions (April 1994) The Organic Law of Concessions opened up investment opportunities for infrastructure and other public works projects. Under the law, the State guaranteed up to 75% of theinvestmentandundercertaincircumstancesmayraise thisguaranteeto90%. Thepresidentmayalsoauthorize 100% income tax waiver and exoneration of all import duties and taxes on equipment and services needed. The State will guarantee the economic/financial health of the project if for reasons not attributable to the concessionairetheconditionsoftheprojectchange.Such conditionscouldbesocial,war, uprising,naturaldisasters, and other force majeure. Geothermal Resources in Latin America & the Caribbean 182

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