Institutional reorganization forms a central pillar of the reform. The Ministry of Hydrocarbons and Energy will reclaim sole authority for national energy policy formulation, a function previously delegated to ENDE. The Electricity Authority and the National Load Dispatch Committee will operate independently to ensure technical oversight remains impartial and free from political influence. The framework also mandates equitable and efficient tariff systems to provide legal certainty for investors while maintaining competitive market conditions.
Consumer protection mechanisms accompany the market opening. The administration synchronized the electricity law with Supreme Decree 5647, promulgated in June, which caps monthly average regulated distribution tariff variations at 5%. The decree incorporates compensation funds and semi-annual stabilization factors for National Interconnected System operators to cushion rate volatility during the transition to private participation.
The Ministry of Hydrocarbons and Energy will assume policy-setting responsibilities that ENDE previously exercised, marking a separation between regulatory authority and state enterprise operations. The government frames the legislation as part of a broader ten-law agenda announced in May, including pending reforms to hydrocarbons, mining, and investment frameworks. Paz emphasized that legislative debate and approval will prove critical to consolidating the legal architecture needed to attract capital flows and reactivate Bolivia’s economy through reduced bureaucracy and accelerated project timelines for energy infrastructure development.
This article was curated and published as part of our South American energy market coverage.
