The Public Utilities Superintendence, through External Circular 202010000174, pointed out some obligations and clarifications regarding Article 7 of Decree 517 of 2020, which establishes rules for public utilities of electricity and fuel gas. Specifically, this article states that, within the framework of the State of Economic, Social and Ecological Emergency, (i) the territorial entities may assume, in whole or in part, the cost of the electric energy or fuel gas utilities for users within their jurisdiction. In addition, (ii) when the territorial entities decide to assume all or part of these costs, they must timely transfer the resources to the commercialization companies that serve these users.
On this article, the Superintendence made the following clarifications:
Firstly, territorial entities must strictly address the provisions of Decree 517 of 2020, Law 142 of 1994 and the Political Constitution. Thus, Law 142 of 1994 prohibits the provision public utilities for free because it puts the survival of the utilities providers at risk, compromising the adequate provision of such services. Therefore, the guidelines of the territorial entities cannot contradict the onerosity principle of public utilities, nor dictate orders contrary to the scope under which the measures ordered by the National Government were conceived.
Secondly, it is "(...) the responsibility of the local authorities (...) to make the timely transfer of resources to the companies that are commercializing electrical energy and fuel gas in the events in which the territorial entities decide to assume total or partial cost of such services".
Third, the authorities must "support the public utilities providers with the mechanisms established in the legislation in force to maintain the provision of such services with continuity and quality".