The Energy Ministry has the ultimate responsibility for setting transmission tariffs and the maximum tariffs applicable to final users. Notwithstanding this declaration of freedom, for most generation a concession or license is required. Hydroelectric generation remains subject to concession. The Energy Ministry awards such concessions after approval by the Ministry of Environment and Renewable Resources. Thermoelectric generation is subject to license to insure that no technical incompatibilities exist with the operation and development of the national electric grid or with any isolated complimentary grids.
Licenses are also necessary for modification of existing thermoelectric generating installations.
The Energy Ministry may grant provisional licenses to conduct studies on the expansion of thermoelectric generation. Any request for provisional or permanent licenses is to be published in order to allow third parties to offer objections. Should interest be expressed by third parties, then the Ministry is to organize a public bidding process. The Energy Ministry, with the aid of the Foundation, is to grant the license to the party that offers to generate the energy at the lowest cost. In case similar offers exist for a definitive license, the Energy Ministry is to give preference to a party previously awarded the provisional license for the project.