The great challenge/question for the energy sector is how to ensure the operational and financial sustainability and efficiency of the energy sector, while relying mainly on a centralized state model. The government of Rafael Correa implemented legislation and regulation that placed control of investment and operation in the hands of the public energy sector. The 2010 Hydrocarbons Reform Law and the 2015 Organic Law of Public Service of Electric Energy established new structures, functional roles and regulations in both sectors that foster greater control and participation of the State in line with the Constitution. The challenge is exacerbated by low oil prices that have reduced Government revenues at a time when it has embarked on a massive state investment program in the energy sector.

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