Quito, Ecuador — (METERING.COM) — March 12, 2009 – Ecuador’s energy regulator Conelec and the Corporación Nacional de Electricidad (CNEL) have signed an agreement giving the Corporation the rights and obligations to act as a distributor in the electricity market.

The CNEL brings together into one organization ten companies owned by the Fondo de Solidaridad, the Ecuadorian government’s holding company for state-owned enterprises.

The ten companies are the Empresa Eléctrica Esmeraldas S.A., Empresa Eléctrica Regional Manabí S.A. (EMELMANABI), Empresa Eléctrica Santo Domingo S.A., Empresa Eléctrica Regional Guayas-Los Ríos S.A. (EMELGUR), Empresa Eléctrica Los Ríos C.A., Empresa Eléctrica Milagro C.A., Empresa Eléctrica Península de Santa Elena S.A., Empresa Eléctrica El Oro S.A., Empresa Eléctrica Bolívar S.A., and Empresa Eléctrica Regional Sucumbíos S.A.

Administratively these companies will now function with regional managements reporting to the management of the CNEL.

At the signing of the agreement the director of the CNEL, Patricio Villavicencio, highlighted as an example of the benefits of the new company the replacement of a transformer in Manabí. This could be achieved with inputs from the other regional offices, whereas prior to the merger the company could not have done it on its own due to lack of equipment.

The merging of these companies is the result of a constitutional mandate dated July 23, 2008.

In a similar process, a combined generation and transmission organization, the Corporación Eléctrica del Ecuador (CELEC), is being established, merging the electricity generators Hidropaute S.A., Electroguayas S.A., Termoesmeraldas S.A., Termopichincha S.A., Hidroagoyán S.A., and the transmission company Transelectric S.A.