The Center, through the use of the System, is responsible for ensuring the proper remuneration of the generator's generation and transmission costs in the short-term market. In contrast with the short term market, long-term transactions are to take place under a regime of free and direct contracting. The participants in the long-term market are generators and non regulated clients. The delay in issuance of regulations implementing the Decree has impeded efforts by potential participants to respond to the opportunities afforded by the Decree. Implementing regulations for a new tariff framework were approved at the cabinet level of the Venezuelan government in the first quarter of 1997.
Final regulations remain pending.
Nonetheless, the Decree opens the door to substantial changes in Venezuela's electric sector.