News in the Oil Upstream Sector: Argentina Fixes Local Crude Oil Reference Price

On May 19th, 2020, Decree No. 488/2020 (the “Decree”) has been issued by the National Executive, which fixes the local crude oil reference price locally produced and delivered (known as the Criollo or domestic barrel) at US$ 45 per barrel, with effects up to December 31st, 2020.

Furthermore, among other relevant matters, the Decree:

  1. Establishes a 0% rate for export duties if the international crude oil price is below US$ 45 per barrel.
  2. Foresees certain obligations for producing, trading and refining companies.
  3. Includes certain restrictions applicable for those companies in connection with the FX market.
  4. Limits the ability to import crude oil.
  5. Updates the values foreseen for penalties under the Hydrocarbon’s Law.

According to the Decree’s recitals, this measure is enacted in order to allow oil producing companies to cover operational costs and sustain the activities and/or production levels prevailing prior to the beginning of the epidemiological crisis, taking into account the current demand shrinkage caused by COVID-19. In addition, the Decree holds a special consideration to the strategic dimension of non-conventional hydrocarbons production in Vaca Muerta.

Below is a summary of the Decree’s most relevant aspects:

1. Domestic oil barrel price

The Decree is effective immediately and the domestic price set forth therein is valid until December 31st, 2020, unless as stated below.

Crude oil produced and delivered in the local market shall be invoiced by producing companies and paid by refining and trading companies considering the Medanito crude type oil price of US$ 45 per barrel (US$ 45/bbl) as reference. This price shall be adjusted concerning each crude type for quality and charging port, according to the usual practice in the local market, and shall also be applicable for payment of royalties to Provinces.

Should at any time the “ICE BRENT PRIMERA LÍNEA” price exceed US$ 45 per barrel for ten days in a row, the domestic price established by the Decree shall cease to be in effect.

2. Obligations of the producing companies

While the domestic price is in force, producing companies are compelled to:

  1. Sustain the activity and/or production levels registered during 2019, taking into consideration current local and international demand shrinkage, and always within the adequate and economic operation parameters established in article 31 of Law No. 17,319.
  2. Comply with the regional services contracts and maintain the employee payroll which was in place in December 31st, 2019.

3. FX restrictions

During the validity term of the domestic oil barrel price, the producing companies which benefit from such price, shall not be able to access the FX market for the structuring of foreign assets nor have the ability to operate in the blue chip swap market.

4. Refining and trading companies’ obligations

The refining and trading companies shall purchase the total crude oil demand to local producing companies, considering the crude quality required by the refining processes and in accordance with the price established in the Decree. For integrated companies, the purchase shall be held with 2019-standards if the crude acquisition exceeds their own production and the subsidiary ones.

Companies shall not be able to import products available in the local market.

5. Export duties for oil and derivatives

For the calculation of the rate applicable for export duties, the Executive Power sets the following “ICE Brent primera línea” values: a) Base Value (“VB” in Spanish): US$ 45 per barrel; b) Reference Value (“VR” in Spanish): US$ 60 per barrel; and c) International Price (“PI” in Spanish): the one published the last business day of every month by the Secretary of Energy, based on the last (5) “ICE Brent primer línea” prices” taken from the “Platts Crude Marketwire” with the “Future Settlements” heading.

For those purposes, the last business day of every week, the Secretary of Energy shall assess the monthly average prices and, if the difference between that price and the actual valid price were to exceed 15%, it shall establish a new price, which shall enter into force the following business day.

Accordingly, the Decree stipulates a 0% rate for duty exports when the International Price is equal or lower than the Base Value.

On the contrary, if the price is equal or higher compared to the Reference Value, the duty rate shall be set forth in 8%. Otherwise, if the International Price were to be higher than the Base Value and lower than the Reference one, the rate shall be determined through the following formula: Duty rate = {PI-VB/VR-VB} x 8%.

6. Taxes.

The increase on Liquid Fuel and Carbon Dioxide Taxes pursuant the updates corresponding to the first and second trimester of 2020 shall enter into force for unleaded and virgin oil, and gas oil as of October 1st, 2020.

7. Updates on fines values

Fines that may be imposed by the concession grantor under Law No. 17,319 have been updated, whereby the new fine values established are the following: minimum amount equivalent to the value of 22 m3 of the national crude oil in the local market and a maximum amount equivalent to 2.200 m3 of the same hydrocarbon for every breach.

8. Delegation of powers to the Secretary of Energy

The Executive Power has awarded the Secretary of Energy the authority to modify the crude oil prices foreseen in the Decree on a quarterly basis, as well as to periodically revise the extent of this measure pursuant the production volume and levels of activity and investment.

Likewise, the Secretary of Energy shall verify the non-realization of monopolistic conducts by every subject of the oil chain of production. To exercise this supervision authority, this public body shall consider objective standards of production and shall consider the consequences provoked by COVID-19 pandemic.

An interview made by the Law Journal of Universidad San Andres (Revista Jurídica de la Universidad de San Andrés) to our partner Nicolás Eliaschev including further analysis and opinion about the Decree can be accessed by clicking or tapping here (in Spanish).

For further information, please contact Nicolás Eliaschev and/or Javier Constanzó.

In the following link, you can access the Firm’s statement on COVID-19.

For information concerning COVID-19 legal implications, please refer here.


COVID-19: Standards for Electricity Distribution

On May 16th, 2020, Resolution No. 35/2020 (the “Resolution”) was published in the Official Gazzette, in which the Electricity Regulatory Authority–in Spanish Ente Nacional Regulador de la Electricidad–(“ENRE”) authorizes certain EDENOR and EDESUR users reached by the mandatory isolation measures established by Decree No. 297/2020 (as amended) to either suspend payments or make partial payments on account of the contracted capacity through supply agreements; or otherwise, to terminate the contract or require an amendment.

1. Benefited users and periods comprised

EDENOR and EDESUR users belonging to categories T2, T3 and Toll (i.e. medium to large users) whose power demand was reduced in 50% or more as a result of isolation measures, may resort to the alternatives provided in the Resolution for payments accrued since March 20th, 2020 and pending subsequent periods.

2. Benefit’s extension and payment facilities

For users which have opted to whether suspend or make partial down payments, this benefit will terminate when the demand recovery reaches 70% of its contracted capacity. In addition, users who resort to this option shall pay debt accrued pursuant to criteria to be determined by ENRE.

3. Distribution companies’ obligations

Distribution companies shall communicate to users the extent of the different options authorized and refer a weekly report to ENRE with the contractual suspensions, modifications and/or terminations based on the Resolution.

For further information, please contact Nicolás Eliaschev and/or Javier Constanzó.

In the following link, you can access the Firm’s statement on COVID-19.

For information concerning COVID-19 legal implications, please refer here.


The Superintendence of Corporations Continues to Tighten Controls on Simplified Companies

Following the trend adopted by the Superintendence of Corporations (“Superintendence”) this year regarding Simplified Companies (“SAS”), on May 6, General Resolution 22/2020 (“RG IGJ 22/2020”) was published in the Official Gazette, which tightens the level of supervision for this type of company.

The RG IGJ 22/2020 provides mechanisms for obtaining information and measures to determine the business development of the SAS, registered both in the public registry of the City of Buenos Aires ("CABA") and other local jurisdictions, in relation to the ownership by this type of companies of property rights over real estate located in the CABA. The intention of the regulator would be to be able to determine if said ownership is alien to the corporate purpose. For this, the resolution provides for collaboration between the Superintendence and the Registry of Real State of the City of Buenos Aires, to obtain information on the existence of transactions regarding real estate rights in which the acquirers, creditors or assignees, fully or acting as trustees, are SAS.

If, based on such information, the regulator determines that those properties are not related to the development or financing of an organized economic activity of production of goods and services conducted by the SAS, the Superintendence will promote -or entrust the Public Ministry Prosecutor- the corresponding legal actions to declare the disregard of the legal entity. In turn, the Superintendence will be empowered to adopt additional measures if it deems it necessary.

In the same sense, note that on May 4, the Superintendence published General Resolution 20/2020, through which it modified article 38 of General Resolution 6/2017, establishing that for the registration of the appointment of administrators, those who are domiciled abroad must file the powers-of-attorney granted to their representatives, which may only be granted in favor of the directors of the  residing in the Argentine Republic.

We also refer to our other Newsletters (see General Resolution IGJ 9/2020 and General Resolution IGJ 17/2020) in relation to the latest regulations applicable to SAS.

For further information, do not hesitate to contact Juan Pablo Bove, Federico Otero, Julián Razumny, Pablo Tarantino, Agustín Griffi, or corporateteam@trsym.com.

In the following link, you can access the Firm’s statement on COVID-19.

For information concerning COVID-19 legal implications, please refer here.


COVID-19: Extension of the Limitations to the Interruption of Telecommunication Services

On May 1st and 4th, 2020, Decree No. 426/2020 (the “Decree”) and Resolution No. 367/2020 (the “Resolution”), respectively, were published in the Official Gazette. Both rules further supplement Decree No. 311/2020, which bans providers from ceasing to supply services  comprising fixed or mobile telephony, Internet and cable television to certain users (listed therein), in case of delay or lack of payments up to three (3) consecutive or alternate bills with due dates as from March 1st, 2020.

Below is a summary of the regulations’ most relevant aspects.

1. Decree No. 426/2020

The Decree extends until May 31st, 2020, the obligation placed upon the providers of telecommunication services to offer limited services capable of guaranteeing  connectivity to users who fail to pay top-up fees to access consumption, and the resulting impossibility to shut-off the service due to such cause.

2. Resolution No. 367/2020

The Resolution has been issued by the National Communications Agency (“ENACOM”, for its Spanish acronym), with the purpose of supplementing certain provisions included in Decree No. 311/2020 and Resolution No. 173/2020, issued by the Ministry of Productive Development, with regards to telecommunication services’ providers.

The Resolution imposes the following additional obligations over those companies:

  1. The obligation to provide, within a maximum term of three (3) days, the following data: 1) List of all users whose service is registered prior to March 26th, 2020, that may be subject to shut-off caused by lack of payment, or keep ongoing shut-off notices; and whose invoices were due as of March 1st, 2020; and 2) List of all the users with pre-paid services who have required a top-up on February and/or March, 2020. This information has to be entered as a Sworn Affidavit in accordance with Appendix No. 1 of the Resolution, available at the following link.
  2. The prohibition to suspend or shut-off services due to lack of payment from users not included in the lists prepared by the Coordination Unit created via Resolution No. 173/2020.
  3. The obligation to report to the ENACOM within the first (15) days as of the Resolution, all prices established for the limited services comprised by article 1 of Decree No. 311/2020 and the terms and conditions and/or forms of the financial facilities offered to users and their information process. Those financial facilities should at least prescribe the possibility for the service to be paid in three (3) monthly installments, to which no interest will accrue, nor penalty will be applicable.
  4. The obligation to publicly disclose these regulatory provisions not only through providers’ web pages, but also via the social networks used and/or advertisement.

Failure to comply with these will result in penalties being imposed under Law No. 26,522 and 27,078, as applicable.

For further information, please contact Nicolás Eliaschev and/or Javier Constanzó.

In the following link, you can access the Firm’s statement on COVID-19.

For information concerning COVID-19 legal implications, please refer here.


Restrictions on Blue Chip Swaps and FX Market

On April 30, 2020, the Argentine Central Bank implemented certain restrictions to blue chip swap transactions, by Communication “A” 7001.

The key takeaways of the new resolution are:

1. Restrictions to Blue Chip Swaps.

In order to access the exchange market to purchase foreign currency (i.e. external indebtedness, imports of goods and services, savings, etc.), the following requirements shall be satisfied:

  • The client shall not have made sales of securities with settlement in foreign currency or transfers of these to foreign depositary entities within the last 30 days; and
  • The client shall undertake not to make sales of securities with settlement in foreign currency or transfers of these to foreign depository entities for the following 30 days.

Transactions involving sales of securities with settlement in foreign currency are those by which the client sells securities and receives dollars, either in Argentina or abroad).

2. Promotional credit lines under the COVID-19 sanitary emergency.

Clients with financings in Pesos under Communication “A” 6937 (promotional credit lines at a 24% rate under COVID-19 sanitary emergency):

  • May not access the foreign exchange market to pay services of principal or interest on external indebtedness past due before March 19, 2020, or with no specified maturity.

    Some clarifications:

    • Not applicable to performing external indebtedness.
    • Not applicable to indebtedness with local financial institutions.
    • Not applicable to external indebtedness incurred after March 19, 2020.
    • Not applicable to payments of imports of goods and services (according to BCRA newsletter dated April 30, 2020).

● May not sell securities with settlement in foreign currency or transfer those to foreign depositary entities.

3. Payments with debit or credit cards.

Clients may not purchase jewels, precious stones as well as precious metals (gold, silver, platinum, etc.) by local credit or debit cards. The following transactions with debit and credit cards were already forbidden: (a) gambling; (b) transfers to payment providers (i.e. PayPal); (c) transfers to investments accounts located abroad; (d) foreign exchange operations; and/or (e) purchases of cryptocurrencies.

4. Reporting of Foreign Exchange Operations.

The BCRA reduced the threshold of transactions that shall be reported to the BCRA with 2 business days in advance from US$ 2 million to U$S 500 thousand.

For more information please do not hesitate to contact Marcelo R. Tavarone, Federico Salim, Julieta De Ruggiero and/or Francisco Molina Portela.

In the following link, you can access the Firm’s statement on COVID-19.

For information concerning COVID-19 legal implications, please refer here.


Renewables and Distributed Generation: Between Promises and Reality During COVID-19 Times

As the worldwide oil prices volatility show, the energy industry has not been left unaffected by the global crisis caused by COVID-19 pandemic.

During these hard times, it is worthwhile to wonder about the present and the future of the Argentinian electricity sector and the potential to turn the crisis into an opportunity.

In the attached report, we argue that price volatility of energy commodities and the current and future presence of health and environmental disruptive threats, advice to keep betting for diversification of the electricity mix as the best path to ensure security and continuity for long-term power supply.

Under this context, the report summarizes the main aspects of laws and regulations targeting renewable distributed generation which have shown strong consensus in the country as we further claim that fostering renewable distributed generation such as our current policy does, seems convenient under existing circumstances.

The report also includes preliminary remarks regarding the following issues:

1. Short-term relevant needs of the electricity sector

  1. Preservation of payment cash flow and short and mid-term economic and financial sustainability of all industry players.
  2. Termination of emergency under Law 27,741 during the legal period provided thereof and operation of the electricity sector under the rules of Law 24,065.
  1. Short-term focus for renewables
  1. Possibility of extending commercial operation dates and intermediate milestones in power purchase agreements corresponding to projects under structuring and/or advanced construction affected by the health crisis and measures adopted consequently either in Argentina or abroad.
  2. Assessing on a-case-to-case basis opt-outs and/or voluntary renegotiation of power purchase agreements for projects with no activity prior to March 12, 2020 (date under which the health crisis was declared), using uniform and non-discriminatory approaches.
  1. Long-term decisions
  1. Definition of transmission infrastructure expansion structure and planning for deployment for additional capacity of renewables for complying with the goal of 20% of consumption for 2025.
  2. Technical and financial evaluation of expanding such consumption target beyond 2025.
  3. Continuity of the electricity mix diversification, evaluating the role of efficient thermal, nuclear and hydropower technologies.
  4. Assessment of new technologies to strengthen the system and supplement the development of Distributed Generation, including power storage, smart metering, demand management and electric mobility.
  5. Assessment of opportunities to boost regional integration and cooperation for spot and long-term exchanges of natural gas destined to power generation and, power itself, with nearby countries.

Download Report

In the following link, you can access the Firm’s statement on COVID-19.

For information concerning COVID-19 legal implications, please refer here.


Changes Regarding Foreign Currency Held by Open-end Funds

On April 23, 2020, the Securities and Exchange Commission (“CNV”) issued General Resolution No. 835/2020 (the “Resolution”), making changes to the restrictions regarding liquidity and cash management applicable to open-end funds (the “Funds”) (with the exception of money market funds):

1) In general, all Funds may keep up to a 100% of their net worth in Argentine Pesos or invested in money market open-end funds.

2) Funds in foreign currency may keep up to a 100% of their net worth in the fund’s currency, both in local or foreign accounts.

3) Funds in foreign currency with shares that may be subscribed in Argentine Pesos, are allowed to keep up to the 25% of their net worth in the fund’s currency, both in local or foreign accounts. This restriction does not apply to those Funds authorized under Law No. 27,260 nor to amounts of shareholders not reached by the maturity extensions imposed by Decrees No. 596/19 and No. 141/20 (cuotapartistas no reperfilados).

Furthermore, the Funds in Argentine Pesos investing in foreign currency will only be able to invest up to 25% of their net worth, having to deposit the amounts both in local or foreign accounts. This restriction does not apply to amounts of shareholders not reached by the maturity extensions imposed by Decrees No. 596/19 and No. 141/20 (cuotapartistas no reperfilados).

Funds’ managers must comply with these new restrictions according to a schedule ending on May 15, 2020.

For more information, do not hesitate to contact Marcelo R. Tavarone, Federico Salim, Julieta De Ruggiero and/or Matías Otero.

In the following link, you can access the Firm’s statement on COVID-19.

For information concerning COVID-19 legal implications, please refer here.


The Superintendence of Corporations Tightens Requirements for Simplified Companies

On April 23, 2020, the Superintendence of Corporations (“Superintendence”) published General Resolution No. 17/2020 (“RG IGJ 17/2020”) in the Official Gazette, by which Section 2 of the General Resolution IGJ No. 8/2017 on Simplified Companies ("SAS") was repealed.

The repealed rule expressly provided for the possibility of incorporating the SAS through an “electronic document with electronic or digital signature of its grantors, where only the last of the partners to be signing should execute the document with a digital signature in order to finalize the document with all the properties and assurances provided by said digital signature.” Regarding the differences between electronic and digital signature, we refer to the Newsletter published on March 23, 2020.

On the contrary, RG IGJ 17/2020, construing that RG IGJ 8/2017 contradicted both the provisions of Law No. 27,439 and the National Civil and Commercial Code, established that all partners must digitally sign the incorporation of the SAS. Also, for SAS already registered -without any digital signature of all its members-, provided a maximum period of 90 days  to comply with said requirement, under notice of proceeding in accordance with what current regulations enable.

In order to carry out said regularization, all partners must digitally execute a private instrument together with the legal representative of the SAS -whose signatures must be certified- in which those who have electronically signed the instrument establishing the company together with whoever has done it digitally: (i) expressly and reciprocally acknowledge their status as partners and their shareholding in the company, along with the individualization of the shares corresponding to each one of them; and (ii) ratify the provisions of the incorporation instrument and, when appropriate, those of any subsequent social agreement (in both cases with retroactive effect to the date thereof). Additionally, a one (1) day notice must be published in the Official Gazette, expressing the identification of its grantors and their shareholdings.

Finally, it should be noted that the Superintendence will not register any act without the prior or simultaneous registration of the required rectification.

Despite RG IGJ 17/2020 regulation, also on April 23, 2020, Provision 86/2020 was issued by the National Directorate of National Registers of Automotive Property and Pledge Credits, which extended the term of suspension for granting digital signatures until May 31 of the current year.

For further information please do not hesitate to contact Juan Pablo Bove, Federico Otero, Julián Razumny, Pablo Tarantino, Agustín Griffi, or corporate@trsym.com.

In the following link, you can access The Firm’s statement on COVID-19.

For information concerning COVID-19 legal implications, please refer here.


Coronavirus (COVID-19) and the fulfillment of contracts

As it has become widely known, the spread of Coronavirus COVID-19 and the regulations issued as a consequence by the Executive Branch have threatened the normal development of economic and production activities, making it difficult or even impeding the normal fulfillment of different contractual obligations.

In this context, we understand that is vital a thorough analysis of the provisions agreed among the parties, and of the facts and circumstances that affect each agreement in particular, to allow its adequate assessment under the legal framework provided by the Civil and Commercial Code (“CCC”).

1. Main legal concepts

  • Force Majeure/act of God: the CCC equalizes both concepts and defines them as the fact which could not be foreseen or that, if foreseen, could not be prevented.
    When the force majeure/act of God is final, its occurrence exempts the debtor of the obligation from liability and sets forth the termination of the obligation, unless agreed otherwise.
    When the impossibility to fulfill an obligation as a consequence of an event of force majeure/act of God is temporary, the obligation will terminate only if time is of the essence or when its duration frustrates irreversibly the intention of the creditor.
  • Unforseeability and readjustment: the CCC allows total or partial termination or adequation (readjustment) of an agreement as a consequence of an extraordinary change in the circumstances, prevailing at the time the contract was executed, that turns the obligation excessively burdensome, to the extent beyond the control of the parties and the risk assumed by the damaged party.
    Those remedies can be invoked under the scope of commutative contracts of permanent or deferred execution.
  • Frustration of the purpose of the contract: the CCC also authorizes the damaged party to terminate the agreement if the frustration is due to an extraordinary change in the circumstances, prevailing at the time the contract was executed, beyond the control of the parties and that exceeds the risk assumed by the injured party. If the frustration is temporary, the injured party will only have the right to terminate the agreement only if the fulfillment of an obligation is prevented within a certain timeframe that is of the essence.

Despite specific cases and what has been agreed in each contract, we consider that both the COVID-19 spread and the governmental measures that have been adopted as a consequence, could determine the existence of a force majeure/act of God event, as long as it can be demonstrated that the impossibility to fulfill is derived directly from the occurrence of those events.

As regards unforeseeability and frustration of the purpose due to COVID-19 and/or the legal regulations issued as a consequence, they could also be validly invoked by the damaged parties, if there is a link between those facts and the supervening burden or frustration, to the extent beyond the risk inherent to the agreement.

Effectiveness of the contractual provisions agreed between the parties and/or the application of one or more of the legal concepts described above may vary in each case.

Some of the issues that may have an impact are, among others, the existence of provisions limiting the liability of a party and/or waiving rights, public policy regulations that may affect a contract, and an eventual imbalance in the bargaining power of each party.

The contractual rights and obligations must be exercised and fulfilled, respectively, in good faith and, hence, any reasonable measure that may prevent or reduce or limit any damage must be adopted.

In any case, the exercise of a contractual right shall not be abusive and may be subject to judicial review to obtain its reparation or re-adequation.

2. Possible causes of action.

Any of the legal alternatives described in 1. above can be invoked both judicially and extrajudicially.

In cases of final or temporary force majeure, the CCC allows to suspend contractual obligations on one part until the other party is in a condition to perform under the contract.

Depending on the specific case and the relationship among the parties, a preventive measure could be filed to preserve a determined law or factual situation or to suspend certain acts or the exercise of certain rights, until the issue is solved in the judicial process.

There are already some precedents under which for purposes of preventive measures the COVID-19 spread has been considered as a force majeure/act of God event, outside of the control of the parties. This criterion may be expanded while the courts resume their intervention in the different cases that are pending to be solved as well as the cases that will be initiated as a consequence of the pandemic.

For further information, please do not hesitate to contact Mariano Rovelli, Eugenia Pracchia, Juan Pablo Bove, Federico Otero, Pablo Tarantino, Julián Razumny, and/or Agustín Griffi, or litigios@trsym.com y corporate@trsym.com.

In the following link, you can access The Firm’s statement on COVID-19.

For information concerning COVID-19 legal implications, please refer here.


COVID-19: Complementary Rules to Public Utilities’ Ability to Interrupt their Services and LPG Price Caps

On April 18th, 2020, Resolution No. 173/2020 (the “Resolution”), enacted by the Ministry of Productive Development (“MDP”), was published in the Official Gazette. The Resolution has regulated the terms of Decree No. 311/2020 (the “Decree”) related to restrictions over public utility operators’ ability to interrupt the supply of services such as electricity supply, gas, running water and sewage, fixed or mobile telephone and internet, and cable television, linked by satellite or radio-electricity, to certain users in case of delay or lack of payments up to (3) consecutive or alternated invoices with due dates since March 1st, 2020, and enforced price caps liquefied petroleum gas (LPG) by fixing prices for 180-days.

Below you may find a summary of the Resolution’s most relevant aspects:

1. Creation of a coordination unit

A coordination unit is incorporated, entrusted to elaborate a report which shall indicate the number of users comprised by the Decree. This unit will be staffed by members of the MPD and representatives of ministerial bodies with powers on these matters, as well as authorities from the regulatory entities of each public utility.

2. Obligations of the public utilities’ providers

Public utilities’ providers must provide a list of all the users that may be subject to service interruption, in order to allow the coordination unit to prepare the report referred above and determine whether such cuts should be left without effect.

In turn, electricity distribution companies must inform to national and provincial regulatory entities, the federal Secretary of Energy and the coordination unit, the number of users with electricity pre-paid service, whose recharge corresponding to March, 2020 period and/or subsequent ones were not carried out in time, and will have to be provided of a normal service during a (180) day-term. The same obligation goes for companies providing telecommunications, Internet, and cable television service, whilst in this case, the report must be referred only to the Coordination Unit on a (15) running days term, counting since the Resolution’s publication.

Should there be any reasonable doubt regarding a user’s capacity to become a beneficiary of the Decree’s terms, the Resolution establishes that the providing company must faithfully compel the user to prove such condition before the corresponding regulatory body on a (5) day term. Within the subsequent (5) days, the authority will notify the company if that user is a beneficiary of the Decree and Resolution’s dispositions.

Moreover, article 6 of the Resolution bounds the public utilities to report before the relevant enforcement authorities the conditions of the payment facilities provided to users. In the case of telecommunications, Internet and television service providers, the payment facilities will have to be paid in at least (3) monthly consecutive and equal installments. No interest of any type will be charged.

Lastly, the Resolution imposes the obligation for public utilities to identify in the invoices and web pages the following aspects: the entire Decree’s operative section and the communication channel provided by the regulatory bodies in order for the users to make enquiries and/or require to be a beneficiary of the regime.

3. Flexible communication channels

Service users are enabled communicate by e-mail, Whatsapp and/or other communication channels enabled to that extent, in the context of the current mandatory social isolation.

4. LPG price cap

Finally, the Resolution allows LGP prices to fluctuate below the levels established by article 6 of the Decree, as long as LGP prices fixation mechanisms enable it.

For further information, please contact Nicolás Eliaschev and/or Javier Constanzó.

In the following link, you can access The Firm’s statement on COVID-19.

For information concerning COVID-19 legal implications, please refer here.