Decree 59-2021
Congreso Nacional
- Decree: 59-2021
- Published: July 26, 2021
- Issuing body: Congreso Nacional
- Gazette: 35,668
- Category: Financial & Tax
Summary
This decree subsidizes the electricity rate increase during the second half of 2021 for households consuming up to 350 kwh monthly and small businesses up to 3,000 kwh, investing L.498 million. It also authorizes ENEE to borrow up to L.9 billion to pay outstanding debts and ensure continuity of electric service.
Considerations
Whereas the exercise of economic activities corresponds primarily to private parties. However, the State, for reasons of public order and social interest, may reserve for itself the exercise of certain basic industries, exploitations and services of public interest and may enact economic, fiscal and public security measures and laws to direct, stimulate, supervise, orient and supplement private initiative, based on a rational and planned economic policy.
Whereas by means of Decree Number 48 of the Military Government Board, published in the Official Gazette "La Gaceta" dated February 27, 1957, containing the Constitutional Law of the National Electric Energy Company, the National Electric Energy Company (ENEE) was created as an autonomous public service entity with legal standing, legal capacity and its own assets, of indefinite duration, whose main objective is to promote the development of electrification in the country and ensure that consumers receive quality service at a fair price.
Whereas the Public-Private Alliance Contract for the recovery of losses in the services provided by the National Electric Energy Company (ENEE), for the execution of the distribution component and financial flow was formalized because the National Congress, by Legislative Decree No. 118-2013, dated June 12, 2013, published in the Official Gazette "La Gaceta" on July 19, 2013, Edition No. 33,180, authorized the Trust Contract for the Recovery of Losses in the services provided by the National Electric Energy Company (ENEE), in order to reduce the technical and non-technical losses of the state electric utility.
Whereas, despite the imposition of penalties by the Superintendency of Public-Private Alliances (SAPP), the management of Honduras Energy Company (EEH) as investor-operator has not improved, therefore the State of Honduras is obliged to protect users of the electric service, in order to guarantee the continuity of this public service and its efficient management.
Whereas the supply of electricity is an essential service for the development of a dignified life in present-day society and for the development of the country, which implies that its supply, quality, continuity and safety must be guaranteed. It is the duty of the State to take all those measures that are aimed at ensuring the welfare of the people, the economy of the nation and the continuity of public services.
Whereas in accordance with Article 205, Attribution 36), of the Constitution of the Republic, it is the authority of the National Congress to: Approve or disapprove loans or similar agreements that relate to public credit, executed by the Executive Branch.
Articles
SUBSIDY TO ELECTRICAL ENERGY CONSUMERS: The tariff increase announced by the Electrical Energy Regulatory Commission (CREE) for the third quarter of the present year is subsidized during the second semester of 2021. Said benefit shall be granted to electrical energy consumers on residential tariff whose monthly consumption is less than or equal to 350 kwh and to small and medium-sized businesses on low voltage tariff whose monthly consumption is less than or equal to 3,000 kwh. The subsidy shall be granted only to the holder of the electrical service, by means of a credit that shall be clearly indicated in the monthly billing of each client. For the foregoing, the Executive Power is authorized through the Secretary of State in the Office of Finance (SEFIN) within the framework of budgetary discipline to identify, incorporate, assign, or reorient resources from the General Budget of the Republic in the amount of up to FOUR HUNDRED NINETY-EIGHT MILLION TWO HUNDRED ELEVEN THOUSAND ONE HUNDRED SIXTY-SEVEN with 30/100 (L.498,211,167.30), for the financing of the aforementioned subsidy. The budgetary execution shall be current transfers from the Secretary of State in the Office of Finance (SEFIN) to the National Electrical Energy Company (ENEE). The National Electrical Energy Company (ENEE) shall send to the Secretary of State in the Office of Finance (SEFIN) monthly the list of consumers who shall receive said subsidy.
Due to the emergency situation in the national electrical subsector and the financial crisis faced by ENEE, the National Electrical Energy Company (ENEE) is authorized to acquire new indebtedness in the amount of up to NINE BILLION LEMPIRAS EXACTLY (L.9,000,000,000.00) or its equivalent in United States of America dollars (USA), under the best financial conditions possible at the time of negotiation, intended to cover financial obligations acquired by that company, in order to guarantee the continuity of electrical service. This indebtedness and the available balances from the issuance of securities and values of public debt, authorized in articles 2 and 3 of Decree No. 171-2019, as well as the indebtedness authorized in Decree No. 171-2020, shall have the sovereign guarantee of the State of Honduras established in Article 78 of the Organic Budget Law. The authorization of the President of the Republic to constitute the sovereign guarantee shall be considered granted when the Executive Power sanctions this Decree pursuant to Article 215 of the Constitution of the Republic and for its formalization, the Secretary of State in the Office of Finance (SEFIN) shall be competent. Said resources shall be used for the payment of pending obligations from previous years and from the present Fiscal Year. In the event of having budgetary support resources in the Central Administration, within the framework of the Fiscal Responsibility Law, the Secretary of State in the Office of Finance (SEFIN) is authorized to subscribe with the National Electrical Energy Company (ENEE) a Reassigned Loan Agreement under the same conditions as the financing is acquired, up to the amount indicated in the previous Article. The Secretary of State in the Office of Finance (SEFIN) and the National Electrical Energy Company (ENEE) are authorized to create the necessary budgetary items for income and expenses in the General Budget of Income and Expenses of the Republic for the recording of operations derived from the application of this Article and in each Fiscal Year during the term of the obligations.
This Decree shall enter into force as of the date of its publication in the Official Gazette "La Gaceta". Done in the city of Tegucigalpa, municipality of the Central District, in the Session held by the National Congress in Virtual manner, on the twentieth day of the month of July of the year two thousand twenty-one. MARIO ALONSO PÉREZ LÓPEZ PRESIDENT JOSÉ TOMÁS ZAMBRANO MOLINA SECRETARY SALVADOR VALERIANO PINEDA SECRETARY To the Executive Power Therefore: Execute. Tegucigalpa, M.D.C., July 26, 2021 JUAN ORLANDO HERNÁNDEZ ALVARADO PRESIDENT OF THE REPUBLIC THE SECRETARY OF STATE IN THE OFFICE OF FINANCE LUIS FERNANDO MATA ECHEVERRI
Related laws
- Decreto Legislativo No. 59-2021 — Subsidio a los consumidores de energía eléctrica y autorización de endeudamiento para la Empresa Nacional de Energía Eléctrica — This law subsidizes the increase in electricity rates during the second half of 2021 for households consuming up to 350 kWh monthly and small businesses. It also authorizes the state electricity company to take on debt up to 9 billion lempiras to pay outstanding obligations and ensure continuous electric service. (Decree 59-2021, 2021)
- Decreto Legislativo No. 59-2021 — Mayor endeudamiento de la ENEE (Decree 59-2021, 2022)
- Executive Decree PCM-099-2021 by which the State Secretariat in the Office of Infrastructure and Public Services is instructed for the repair of the airfield pavements of Toncontín Airport — This decree orders the Infrastructure Ministry to urgently repair pavements, lighting, and signage at Toncontín Airport to ensure flight safety. It simultaneously authorizes the transition of operations to Palmerola Airport and the acquisition of specialized equipment needed for both airports. (Decree 71-2016, 2021)
- Acuerdo Ejecutivo No. SEN-030-2021 — Aprobación del Reglamento de las Características, Términos y Condiciones de la Emisión denominada Valores Gubernamentales de la Empresa Nacional de Energía Eléctrica (VGE) (Decree SEN-030-2021, 2021)
- PCM-15-2022 — This decree approves the Medium-Term Macro Fiscal Framework (MMFMP) 2023-2026, a plan that establishes economic and fiscal projections for the country for the coming years. It affects all citizens by defining how the government will manage its spending and revenue, with objectives of reducing poverty, generating employment, and maintaining responsible fiscal stability. (Decree PCM-15-2022, 2022)