.jpg)
1 hour ago
2
Article content
(Bloomberg) — Venezuela’s National Assembly will debate a reform that would open the country’s electricity sector to private investment, allowing companies to generate, distribute and sell power under government concessions after more than 15 years of state control.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
The proposal would permit private firms, mixed enterprises and companies with minority state ownership to operate in the sector alongside the state, according to draft legislation seen by Bloomberg. The bill also says it would establish tariffs designed to reflect the cost of providing service and allow operators a reasonable return on investment.
Article content
Article content
Article content
Venezuela’s Information Ministry did not immediately respond to requests for comment on the draft.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
The power-sector overhaul follows a similar opening of Venezuela’s oil industry and underscores President Delcy Rodríguez’s effort to draw foreign investment into strategic industries after the US eased restrictions on the country. It also reflects growing concern that chronic electricity shortages have become a constraint on plans to increase oil and gas production.
Article content
Also Read: Venezuela Wants Oil Firms to Supply Their Own Power for Projects
Article content
Authorities are already moving to require energy companies to provide their own electricity generation for new oil and gas projects because the grid lacks the capacity and reliability needed to support increased production. Frequent outages have affected fields in the Orinoco Belt and the Lake Maracaibo region, contributing to production losses.
Article content
Under the bill, the Energy Ministry would be able to grant concessions for as long as 25 years, with extensions of up to 15 additional years. The ministry would retain authority to revoke concessions or intervene in operators under certain circumstances. The draft legislation amends a law that established a state monopoly under utility Corp. Electrica Nacional, known as Corpoelec.
Article content
Advertisement 1
English (US)