A press release from the National Secretariat of Energy reads:
The Cabinet Council has approved an amendment to the Law of February 6th , 1997 that seeks to improve the national electricity market with a view to distribution companies fulfilling their obligation to contract out all of their demand in order to produce a secure supply to end customers.
The initiative was supported by Fernando Diaz of the Secretary of Energy, who was joined by Zelmar Rodriguez, the manager of the Public Services Authority (ASEP), among other officials.
To achieve this goal, Diaz said in this process they are introducing the concept of special specifications which will be developed to meet current needs and growth in demand, and avoid potential rate increases at any given time.
Source: Secretaría Nacional de Energía
More on this topic
March 2012
The current concessions will expire in 2013 and the contracts include an obligation to provide "a competitive process of free competition ... the sale of majority shares of the company holding the concession."
The concession contracts signed in October 22, 1998 with Gas Natural Fenosa and Ensa, 15 years ago are going to expire, meaning that the National Authority of Public Services (ASEP) must tender the sale of 51% of the aforementioned distribution companies shares before October.
September 2009
Distributing companies will have to purchase 4 years worth of energy supply, instead of the 2 years required today.
New regulations also modify timing considerations for bidding processes. Nowadays they must be done one month before contract expiration, but in the future they will be done earlier, to better prepare bidding terms.
April 2010
The Government proposed a bill to increase private participation in the electricity market via tax incentives.
In its 97th article, the bill to open up the electricity market to private participants includes levying taxes on equipment and machinery used in energy generation.
June 2009
The growth of the economy in Panama is accompanied by the constant expansion and renovation of the electricity distribution networks.
Between the two electricity distribution companies, Unión Fenosa (Edemet-Edechi) and Elektra Noreste, annual investments average $50 million and the forecast for this year and the next is that this pace of investment will continue in order to satisfy user demand, which increases by more than 5% annually.
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