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NEWSLETTER 2013

324

taken under review. TEIAS and/or the related distribution company, after

finalizing its decision within forty-five days of the notice, presents it to the

Authority, and said opinions presented to the Authority are communicated

to the applicant within ten business days. If the applicant approves the

opinions on the connection and system usage, it is obliged to submit the

documentation regarding the approval and commitments on the opinion(s)

within ten (10) business days to the Authority; or file a justified objection

within ten (10) business days. Otherwise, the application is considered as

approving of and committing to the opinion(s) on connection and system

usage.

With respect to the works and procedures to be completed within

the term of the preliminary license, which is one of the new practices

stipulated by Article 17 of the Regulation, preliminary license holder legal

entities have to apply to the related agencies; for example, within ninety

(90) days to obtain the decision required by the Environmental Impact

Assessment Regulation and within one hundred and eighty (180) days

for the Technical Interaction Permit. Further, preliminary license holders,

within the term of the preliminary license, shall complete transactions

such as securing of property or usufruct rights, approval of zoning plans

and obtaining approval for the preliminary project.

Companies that do not rectify their inadequacies within the term of

the preliminary license, which cannot exceed twenty-four (24) months,

will not be able to obtain licenses, provided that the exemptions are

reserved. Moreover, the preliminary license becomes null automatically

at the end of its duration or in case of bankruptcy of the preliminary

license holder legal entity.

A preliminary licensee legal entity intending to place a generation

license application can file a license application after having completed

the requirements of the preliminary license. In case a preliminary license

holder does not apply for a generation license before the term of the

preliminary license ends, it will be deemed that the requirements for the

generation license, which need to be completed within the duration of the

preliminary license, have not been fulfilled.

The provision that prohibits share transfers in applicant legal entities

for the duration of the preliminary license is one of the most important