The Venezuelan government is preparing a reform that will allow private companies to operate in the energy sector alongside the state. The relevant bill provides for the admission of private firms, joint ventures, and companies with a minority state stake to the electricity market, Bloomberg reports, according to UNN.
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The document also provides for the setting of tariffs taking into account the costs of providing services and ensuring a "reasonable return" for investors. The reform is part of President Delcy Rodríguez's policy to attract foreign capital following the easing of US sanctions.
The reason for the changes was chronic power outages, which are already affecting oil and gas production. Due to the lack of capacity, the authorities even require new energy projects to provide their own electricity.
According to the draft, the Ministry of Energy will be able to grant concessions for a term of up to 25 years, with the possibility of extension for another 15 years. At the same time, the state will retain the right to intervene in the operation of operators or cancel concessions under certain conditions.
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