General Law Of Electricity

Author:Pellerano & Herrera
Profession:Pellerano & Herrera

    The national electric system was created in 1928, when, through a presidential decree, the establishment of the Electric Company of Santo Domingo was authorized. This Electric Company was responsible for generating, building, rehabilitating and extending the transmission and distribution networks of the electric energy.

    Later in 1954, the National Congress approved Law 4018, in which declared as of high national interest the acquisition by the State of all the companies that were then producing, transmitting and distributing electricity to the public in general. In 1955, the Dominican Government modified the energy sector by acquiring the Electric Company of Santo Domingo. Also, through Decree No. 555 dated 19 January 1955, the Corporación Dominicana de Electricidad (hereinafter, "CDE") (Dominican Electricity Corporation) was created, which was assigned the responsibility of maintaining, expanding and generating all the electric energy in the country. In order to formulate a legal framework to regulate the electric sector, on 21 April 1955, the National Congress approved the Organic Law of the Corporación Dominicana de Electricidad (hereinafter, the "Law No. 4115"), which granted jurisdiction and autonomy to the CDE to exercise authority in the electric field within the territory of the Dominican Republic in an exclusive manner.

    After several modifications to Law No. 4115, in 1966 the Organic Law of the Ministry of State of Industry and Commerce No. 290-66 was issued. This created an echelon higher than the CDE, a Ministry of State, which became responsible for the energy policy of the country. Later the Decree No. 584 of 1979 issued by the Executive Power, created the National Energy Commission, which under the direction of the Ministry of State of Industry and Commerce was given the duties to formulate and propose to the Executive Power the investment programs for the generation of energy.

    For the purpose of stimulating the energy sector, Law 14-90 on Incentives to National Electric Development (hereinafter, the "Law 14-90") was promulgated in 1990. The purpose of this law was to foster and stimulate generation of energy through the establishment of incentives and cancellation of assessed taxes to those companies committed to the production of electric energy.

    The Law 14-90 was revoked in 1992 with the enactment of Law 11-92 which created the Tax Code. During that same year of 1992, the restructuring process of the CDE was...

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