Regulatory Alert – November 2022

Free users will also finance the Electric Social Compensation Fund (FOSE) from November 2022

On October 28, 2022, Law Nº 31598 was published, which provided for bringing forward to November 2022 the validity of Law Nº 31429, which introduced amendments to Law Nº 27510, Law creating the Electric Social Compensation Fund («FOSE Law»).

Law Nº 31429, published on February 26, 2022, mainly provided for:

• The increase of the range of beneficiaries of the FOSE to those users with a monthly consumption equal to or less than 140 kW/h month (previously, it was a consumption equal to or less than 100 kW.h month) and;
• The incorporation of free users to the universe of users affected with a surcharge for the financing of the FOSE (before, only regulated users paid).

The same Law Nº 31429 originally established that the amendments made to the FOSE Law would enter into force from January 2023. However, Law Nº 31598 brought its validity forward to November 2022.

Thus, from November 2022, the range of users benefited by the FOSE is increased; and, in addition, the invoices for the electric service to free users will include the FOSE charge for its financing.

For further information, please contact María del Rosario Quiroga (Rquiroga@estudiorodrigo.com) and/or Margarett Matos (Mmatos@estudiorodrigo.com).