The Ecuadorian government is once again proposing reforms to the Organic Law of Electric Public Service (Lospee), marking the third attempt in 27 months. This latest initiative is part of an urgent project aimed at the Organic Law of Strategic Sectors in Mining and Energy. The objective of these changes is to streamline private sector investment and to alleviate the financial burden on state resources, particularly in the electricity sector, allowing them to address other pressing priorities.

The proposed law provides specific grounds for appealing for exceptional participation from the private sector via concession or delegation regimes. This move is a direct response to a recent ruling from the Constitutional Court, which invalidated a part of article 25 of the Lospee, addressing public or collective interest concerns in public service sectors. The reforms aim to bolster both investment in and the efficiency of the national electricity system, seeking to encourage private entities to become involved in generation, transmission, and distribution projects.

By enabling exceptional delegation for projects in the National Electricity System (SNE) segments, the government is signaling its intent to modernize the sector and improve operational funding. This initiative may impact future investment flows into the energy sector and reshape the dynamics between public service obligations and private sector participation, marking a significant shift in energy policy in Ecuador. Overall, the reforms represent a strategic effort to redefine how energy is managed and funded in the country, positioning it for more substantial private investment while navigating regulatory challenges.