The president of the Superintendency of Electricity, a body of the Ministry of Industry and Commerce, said that the government authorized the 5% increase in electricity billing by Resolution 237-98. The increase covers nine months of inflation, from November 1998 to July 1999. Marcos Cochón, president of the Superintendency, told the press that the government does not have legal mechanisms to penalize the distribution of electricity companies if they do not fulfill their obligations, nor if they increase billings beyond what is authorized. He said that the penalties are contemplated in the General Electricity Bill that has not been passed by Congress. The bill has been debated for years and is stagnated due to individual interests of certain congressmen and influential figures and sectors that wanted to modify the bill or maintain the status quo which provides advantageous tax exemptions to electrical companies.
