The government of Panama has taken the first steps towards cutting subsidies for electricity, and the first sector affected may consumers using between 451 and 500 kW, 2% of total users, authorities said.
"A user whose consumption is between 451 kilowatts and 500 kilowatts is one that pays an average of $100, and includes the use of air conditioning and other facilities," said Prensa.com.
In the past six years, the subsidy bill for electricity consumption was about $430 million, an increase caused by rising oil prices.
"Last year the Government had to contribute $120 million to the stabilization fund in order to maintain current electric rates and, if a policy of reducing the electricity subsidy in 2012 is not made it could reach $300 million mainly due to rising oil prices", reported the website.
Source: Prensa.com
More on this topic
January 2012
The National Economic Council (CENA) has approved $35.8 million to subsidize the electricity tariff.
A press release from the Ministry of Economy and Finance of Panama reads:
The National Economic Council (CENA) has approved a draft resolution by which the Cabinet authorizes the Ministry of Economy and Finance, as trustee, to transfer to the Electric Transmission Company S.
November 2008
Electricity companies announced that there will be an increase in energy rates if Cel does not fulfill its commitment to subsidize consumption.
The scarcity of liquidity in the financial market could be the reason the Rio Lempa Executive Hydroelectric Commission (CEL) has not been able to pay the $94.7 million in subsidies claimed by the generating and distributing electric companies, according to the Technical Secretary oh the Presidency, Eduardo Ayala Grimaldi.
July 2009
The government, which currently subsidizes 50% of electricity bills for consumption up to 99 kw, analyzes continuing the subsidy.
The subsidy of $7.5 million a month currently benefits 825,000 households, which is equivalent to 62% of all the users in the country.
Laprensagrafica.com publishes declarations of Héctor Silva, the president of the Social Investment Fund for Local Development (FISDL, acronym in Spanish): “A team has been assembled to review the issue (focusing on the subsidy) and others that are on the agenda. The commission includes the Technical Secretary of the Economy. I do not want to go into details but, yes, we have begun a debate on the issue.”
May 2010
The government of Guatemala will invest $14.52 million to lower the energy bill of those users consuming more than 300 kilowatts.
This way, the existing energy subsidy is extended to those users not included in the social rate (less than 200 kilowatts).
Local newspaper Elperiodico.com.gt reported that the money will be wired to the country’s energy companies, in order to absorb a recent increase in the price of energy.
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