Law on the Promotion and Strengthening of the Industrial Electric Market
Congreso Nacional
- Decree: 123-2021
- Published: January 17, 2022
- Issuing body: Congreso Nacional
- Gazette: 35,824
- Category: Commercial
Summary
This law allows private companies to generate and sell electricity on equal terms, using renewable energy or fossil fuels. It exempts these companies from sales tax and tariffs on imported fuels for electricity production, aiming to create fair competition in Honduras' national electricity market.
Considerations
Whereas, with the objective of harmonizing the national regulations governing the electrical subsector, in order to develop the electrical industry for the benefit of the inhabitants of the region, it is considered necessary to equalize the operating and functioning conditions of agents in the electrical market, regardless of whether generation is from renewable or non-renewable resources.
Whereas, in accordance with Article 351 of the Constitution of the Republic, the National Tax System shall be governed by the principles of legality, proportionality, generality, and equity, in accordance with the taxpayer's economic capacity.
Whereas, in order to encourage the generation of electrical energy by private companies and for it to be commercialized through free supply and demand, in response to the demands of different sectors of society, it is necessary to control and rationalize the tax burden on fuels, which will allow the Agents of the National Electrical Market to compete under equal conditions in a harmonious market governed by the principle of free market, establishing prices through supply and demand in the sector.
Whereas, it is essential to have legislation that regulates mining activity, capable of ensuring the defense of human beings as the center, reason, and supreme purpose of society and the State, which translates into the development of the country and the improvement of the quality of life of Hondurans, establishing for this purpose clearly each of the processes involved in mining activity in order to achieve greater and better use of these mineral resources.
Whereas, in accordance with Article 205, Attribution 1) of the Constitution of the Republic, it is the authority of the National Congress to: create, decree, reform, interpret, and repeal laws.
Articles
Purpose: The purpose of this Law is to create equitable conditions so that Agents of the National Electrical Market may compete under free market rules in the generation, distribution, and commercialization of Electrical Energy in the national territory, whether generation is based on renewable or non-renewable resources. Self-producing companies are authorized to sell to other Agents of the National Electrical Market.
Applicability: This Law is of a public nature and shall apply to Agents of the National Electrical Market that generate electrical energy based on renewable or non-renewable resources, with fossil fuels—petroleum derivatives—whether liquid or solid. Self-producing companies are authorized to sell to other Agents of the National Electrical Market.
Exemptions: Agents of the National Electrical Market are excepted in the following manner: 1) They are exempt from the payment of Sales Tax (ISV) on the importation of fossil fuels—petroleum derivatives—whether liquid or solid, such as Coal Coke (Petcoke) and Bituminous Coal bituminous coal in all its derivations. 2) The importation of fossil fuels—petroleum derivatives—whether liquid or solid, such as Coal Coke (Petcoke) and Bituminous Coal bituminous coal in all its derivations, are exempt from the payment of the percentage of Tariff Rights on the CIF Value (DAI).
Reform by addition of Article 18-A of the GENERAL MINING LAW, contained in Decree No. 238-2012 dated January 23, 2013 and published in the Official Gazette "La Gaceta" on April 2, 2013, in Edition No. 33,088 and its amendments, which shall be read as follows: "ARTICLE 18-A: In addition to the preparatory operations and activities referred to in the preceding Article, exploitation activities comprise:
- a)
Construction of preparatory physical works for the mineral extraction process of interest;
- b)
Activities for the development of cuts, cutting profiles and tunnels;
- c)
Overburden removal, removal of vegetation cover;
- d)
Extraction of waste or substance of interest; and,
- e)
Detonations or blasting".
This Decree enters into force from the day of its publication in the Official Gazette "La Gaceta". Given in the city of Tegucigalpa, municipality of the Central District, in the Session held by the National Congress in Virtual form, on the twenty-third day of the month of December of two thousand twenty-one. MARIO ALONSO PÉREZ LÓPEZ PRESIDENT JOSÉ TOMÁS ZAMBRANO MOLINA SECRETARY ROSSEL RENÁN INESTROZA MARTÍNEZ SECRETARY To the Executive Branch Therefore: Let it be executed. Tegucigalpa, M.D.C., of 2021 JUAN ORLANDO HERNÁNDEZ ALVARADO PRESIDENT OF THE REPUBLIC THE SECRETARY OF STATE IN THE OFFICE OF ENERGY ROBERTO ANTONIO ORDOÑEZ