The Daily Journal — In a strategic shift for the country’s energy policy, the National Assembly unanimously approved the Partial Reform Bill of the Organic Law of the Electric System and Service during its first debate on Thursday.
The national executive submitted the bill, which opens the sector to private and mixed capital under a “strict framework of concessions, public oversight, and civil and criminal liability for operating companies.”
Representative Orlando Miranda (PSUV) presented the reform during the plenary session. He emphasized that the initiative emerged from an extensive dialogue process between Acting President Delcy Rodríguez and the business sector to shape the proposal.
Recognition of Structural Limitations
During his remarks, Representative Miranda acknowledged that the current model—under public control—has failed to meet the country’s economic demands. He directly linked this situation to the impact of existing U.S. sanctions.
“The model that governs the national electric system has shown structural and financial limitations. It cannot respond with sufficient speed and efficiency to the needs of the Venezuelan people because of the scale of the country’s current productive reality and the negative impact of unilateral coercive measures imposed by the United States,” Miranda argued.
The lawmaker reviewed several thermoelectric projects that officials conceived during the previous decade of oil prosperity. Financial constraints prevented operators from obtaining spare parts and maintenance services, stalling those projects. Miranda cited specific cases in the states of Carabobo, Mérida, and Zulia.
A New Service Structure: Mixed and Private Companies
The reform proposal contains 42 articles and completely redefines the participation of economic actors throughout the national energy supply chain.
According to Miranda, the legislation introduces “a mixed and private capital framework under a strict regime of concessions, public oversight, and civil and criminal liability for operators.”
The core of the new legal framework decentralizes the value chain—generation, transmission, distribution, and commercialization—through three forms of participation: the Venezuelan state; mixed companies, “where the Republic maintains control through ownership of more than 50% of the share capital”; and companies in which the Republic or public entities “hold a minority stake in the share capital, as well as private companies legally established within the national territory.”
Tax Incentives, Realistic Rates, and Compensation for Blackouts
To attract foreign and domestic investors, the reform establishes a tariff structure that “includes all real costs” and provides “reasonable profitability for investors.”
The law will also allow regional authorities to implement tax policies and temporary tax incentives in the country’s most critical areas, subject to specific conditions.
At the same time, the bill includes strong consumer protections. It requires new operators “to provide financial compensation to users for damages resulting from blackouts or poor service quality.”
After receiving unanimous support from all political groups in the plenary session, the bill will move to the public consultation stage before lawmakers conduct the mandatory second debate and grant final approval.
