Ecuador President Noboa evaluates tax incentives and sanctions for industries regarding power autogeneration

Ecuadorian President Daniel Noboa announced that the government is considering tax relief for industrial companies that invested in electrical autogeneration systems to mitigate the country's energy crisis. According to Noboa, approximately 45% of the industrial sector has complied with requirements to generate at least 30% of its own electricity, as requested 18 months ago under Executive Decree 32.

In contrast, the President indicated that the government is evaluating fines and sanctions for industries that failed to meet these autogeneration requirements. He noted that non-compliant companies represent a demand of approximately 300 megawatts for the National Interconnected System. To prevent residential blackouts, the government has reduced the electricity supply to these specific industries for the equivalent of 30% of the hours each week.

Noboa emphasized that residential households will not experience power outages, distinguishing the domestic sector from the targeted industrial restrictions. He stated that while there should not be a 'prize for following the law,' tax benefits are being analyzed to recognize the investment efforts made by companies such as Corporación Favorita, Novacero, and Difare.