By Ministerial Agreement No. MEM-MEM-2022-0024-AM, published in Official Gazette No. 91 of June 24, 2022, the Ministry of Energy and, issued the “Public Policy of the Electricity Sector. Below, we present the most relevant points of Public Policy:

Purpose and scope of application. – Public Policy is applicable in any act disposed to the administration, regulation, control and management carried out by entities and bodies in the electricity sector.

All institutions, companies related and linked to the electricity sector, must articulate their institutional planning; public programs and projects, in order to comply with the objectives, policies and strategic guidelines established in Public Policy.

Strategic pillars of Public Policy. – Public Policy will be based on the following strategic pillars:

a. Safety and Quality pillars for the Supply of Electric Power

b. Electric Energy Demand and Consumption pillars

c. Energy Efficiency Pillars

d. Environmental and Social Pillars

e. Institutional Pillars.

Safety and Quality Pillars for the Supply of Electric Energy. – Its objectives are: (i) to guarantee the supply of Ecuador’s electricity demand, through the optimal expansion of the generators, promoting the use of renewable energy resources. (ii) Promote a systemic and integrated planning process for the realization of studies of expansion of generation, transmission and international connections. (iii) Guarantee the security, reliability and efficient management of the National Transmission System, through the execution of infrastructure projects to meet the requirements of supply and demand.

Demand and Consumption Pillars of Electrical Energy. – Its objectives are: (i) Promote the integral planning of distribution systems. (ii) Provide the general public lighting service in optimal technical, economic, social and environmental conditions. (iii) Provide the public service of electric energy under the precepts of sustainability, resilience, safety, quality and reliability. (iv) Provide the Electric Vehicle Charging service with the best technical, economic, social and environmental conditions.

Energy Efficiency Pillars. – Its objective is: (i) To achieve optimization in energy use and consumption, throughout the supply chain and in end users. To meet this objective, it is proposed to promote financing and cooperation schemes for energy efficiency, as well as to propose and apply incentives and tariff disincentives, aimed at the efficient consumption of electricity.

Environmental and Social Pillars. – Its objectives are: (i) : Diversify the electricity matrix prioritizing renewable and non-conventional natural resources, promoting the reduction of greenhouse gases. (ii) Promote access to energy for all social sectors, in a safe, quality and affordable manner.

Institutional Pillars. – Its objectives are: (i) To promote the development of the Ecuadorian electricity sector, in order to provide citizens with services with optimal quality standards and at socially fair prices, applying in its management the best environmental practices.