31 Mar Information COVID-19 Andorra. Newsletter 7
Newsletter COVID-19. Number 7
Escaldes-Engordany, March 30th, 2020
Given the rapid and unpredictable evolution of the current emergency situation caused by the COVID-19, on March 27th the Government of Andorra was forced to approve two Decrees that provide the temporary application of discounts in the prices of telecommunications and the current electricity tariffs, which repeal the Decrees of 25-3-2020 on reductions in the said rates.
Decree of 27-03-2020 which adopts, exceptionally, the temporary application of discounts in the current telecommunications prices
In the field of telecommunications, on March 25th, discounts of 100% and 80% were approved on the monthly quota of certain services to companies and self-employed workers who have suspended or limited their activity due to the COVID-19.
In this sense, as days have passed, the Government jointly with Andorra Telecom has studied the possibility of extending the measures adopted and determining mechanisms that verify the reality of the declarations presented.
- Temporary application of discounts. Companies and self-employed workers whose activity has been affected by the Covid-19 will be able to access discounts of 100% or 80%. These discounts apply to the monthly fee of fixed landlines, Internet access modular offer, company fixed landline, SIP-T (IP PBX lines), Virtual PBX (XVC), high-capacity Internet companies, access modules to Internet and intranet FTTH nodes.
- Application and petition of discounts. Andorra Telecom directly applies the discounts to those affected by the temporary suspension or limitation of its activity due to the COVID-19. However, those that have not been forced by law to suspend their activity and have suspended it in an effective and total way, may request to receive discounts through the form that Andorra Telecom has made available on its web page.
- Duration and validity. Application of discounts from the entry into force of the Decree of 14-3-2020, adopting restrictive measures of the activity of establishments in Andorra, and until the Government raises these restrictions or decrees the opening of the establishments.
Decree of 27-3-2020 which adopts, exceptionally, the temporary modifications of electric rates
On March 25th the Government approved the application of temporary discounts of the FEDA rates for companies and professionals whose activity has been affected by THE COVID-19, being the reductions of 100% or 80% depending if the suspension has been total or partial.
In this sense, as days have passed, the Government jointly with FEDA has studied the possibility of extending the measures adopted and determining the mechanisms that verify the reality of the declarations presented.
- Price reductions. The supply contracts for establishments with commercial, industrial or professional activity can benefit from a reduction of 100% if they have been forced to temporarily suspend their activity, or have not been forced but have suspended their activity, and 80% if they are subjected to a guard schedule. The application must be made using the form that FEDA makes available for this purpose, indicating the group code of the activity, which reduction they are applying for, the date on which the activity was suspended and accompanied by a statement by the applicant.
- Reduction to distribution companies. The cost that the application of these reductions represents for distribution companies will be computed by FEDA with the application of some special rules and deducted from the invoicing. The amount of energy provided with the reduction of 100% will be deducted by FEDA at the average purchase price of the distribution company, while the supplied with the reduction of 80% will be reduced to 80% of the average purchase price. Distribution companies must supply FEDA with a list of the reductions that they have applied to their customers.
- Duration and validity. The reduction may be requested as of March 30th, and the application period includes from March 14th to the calendar day following the date on which the Government declares the end of the sanitary emergency. The companies that carry out a seasonal activity will apply the reduction from the 14th of March to the date that the closure of the establishment is foreseen.
Finally, please note that Ancei’s team will continue to keep you informed of any new measures the Government will take to alleviate the health emergency crisis caused by COVID-19.
We remain at your entire disposal.
Jaume Torres Segura
Partner at ANCEI