General Electricity Law
General Principles of the General Electricity Law (LGE)
1
The LGE regulates the development of all activities related to electricity generation, transmission, distribution, and commercialization, according to the following premises:
a) Electricity generation is free and does not require prior authorization or conditions from the State, except those recognized by the Political Constitution of the Republic of Guatemala and the country’s laws.
b) Electricity transmission is free when it does not require the use of public domain property. Private electricity distribution services are also free.
c) Authorization is required for electricity transmission that involves the use of public domain property and for final electricity distribution services.
d) Prices for electricity services are free, except for transmission and distribution services subject to regulation. Energy transfers between generators, marketers, importers, and exporters resulting from wholesale market operations are subject to the terms referred to in the LGE.
2
The provisions of the LGE apply to all individuals or legal entities engaged in electricity generation, transmission, distribution, and commercialization, whether private, mixed, or state-owned, regardless of their degree of autonomy or legal structure.
3
The Ministry of Energy and Mines is the State body responsible for formulating and coordinating policies, state plans, and indicative programs related to the electricity sector, and for applying this law and its regulations to fulfill its obligations.
