ARCONEL sets compensation of 41.14 cents per kilowatt for diesel emergency generators

The Electricity Regulation and Control Agency (ARCONEL) has set the compensation item to be recognized for emergency generators operating with diesel 1 and 2 and equipment of 100 kW or more at 41.14 US cents per kilowatt hour. The decision is contained in Resolution No. ARCONEL-ARCONEL-2026-0032-RES, signed on October 12, 2026, by the acting executive director, Luis Fidel Lasso Ramos, and published in the Fourth Supplement of the Official Registry No. 398 on Tuesday, October 27, 2026.

The item, identified by the acronym RCEGEE, is determined monthly and is the basis with which the National Electricity Operator (CENACE) settles transactions for those who contribute their own energy to the system. The resolution is issued in application of article 10, numeral 10.2.2, and general provisions five, six, and eight of Regulation No. ARCONEL-002/26, which regulates the technical and commercial operation of generator sets during emergency schemes.

Approved values by fuel type

Article 1 of the resolution establishes a differentiated table according to the power of the equipment and the fuel used, expressed in US cents per kilowatt hour:

• Diesel 1 and 2: 37.11 ¢USD/kWh for equipment under 100 kW; 41.14 ¢USD/kWh for 100 kW or more.
• Premium Diesel: 43.28 ¢USD/kWh and 47.30 ¢USD/kWh, respectively.
• Liquefied Petroleum Gas (LPG): 30.56 ¢USD/kWh and 34.58 ¢USD/kWh.
• Fuel Oil No. 4: 20.04 ¢USD/kWh and 24.06 ¢USD/kWh.
• Fuel Oil No. 6: 20.73 ¢USD/kWh and 24.75 ¢USD/kWh.

The measure is effective for the period between October 12 and November 11, 2026, based on the results of memorandum No. ARCONEL-DRET-2026-0130-M and the favorable legal report contained in memorandum No. ARCONEL-CJ-2026-0257-ME, both dated October 12, 2026.

Increase compared to the previous period

The values represent an increase compared to those in effect between September 12 and October 11, 2026, set by Resolution No. ARCONEL-2026-0030-RES. For diesel 1 and 2, the item for equipment of 100 kW or more goes from 40.23 to 41.14 ¢USD/kWh; for premium diesel, it rises from 44.68 to 47.30; for LPG from 34.05 to 34.58; for Fuel Oil No. 4 from 22.47 to 24.06; and for Fuel Oil No. 6 from 22.16 to 24.75 ¢USD/kWh.

The calculation follows the formula in Annex G of Regulation No. ARCONEL-002/26: RCEGEE = CO&M + CC + CTC, meaning operation and maintenance cost, fuel cost, and transport cost. The operation and maintenance cost was set at 4.02 ¢USD/kWh and the transport cost at 1.32 ¢USD/kWh for the period from September 12, 2026, to September 11, 2027, while the fuel component is updated every month with the price publications from EP Petroecuador.

Who can access the item

According to numeral 6.1 of the regulation, compensation applies to whoever is the owner, lessee, contractor, or holder of any legal instrument that formalizes the relationship with emergency generator sets from the private sector, with a minimum nominal power of 100 kW; the maximum capacity is determined and justified by the electric distribution company. The fifth general provision establishes that monthly values are published on the institutional website of ARCONEL and constitute the sole official consultation channel.

The framework of the measure includes Ministerial Agreement No. MAE-VEER-2026-0001-AM of March 4, 2026, which enabled CENACE to activate the operation of generator sets in the event of power deficits, energy deficits, or network problems, and Regulation No. ARCONEL-002/26, issued by the Board through Resolution No. ARCONEL-006/2026 of April 29, 2026, which repealed regulations ARCONEL-003/24 and its codified version. The deficit alert period remains in effect since October 16, 2023, in accordance with the notifications from CENACE to the Agency.

The resolution entered into force upon its signing, without prejudice to its publication in the Official Registry, and bears the review signatures of the Electric Sector Regulation and Legal Advisory coordinations, as well as the Directorate of Economic Regulation and Tariffs.

Source: Official Registry, Fourth Supplement No. 398, Tuesday, October 27, 2026, Section I (Executive Function), p. 2 (official reference: Resolution No. ARCONEL-ARCONEL-2026-0032-RES).