El Salvador Analyzes Electricity Subsidy Reduction

The government, which currently subsidizes 50% of electricity bills for consumption up to 99 kw, analyzes continuing the subsidy.

Wednesday, July 1, 2009

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.”

More on this topic

Electricity subsidy at risk in El Salvador

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.

El Salvador: The electric bill for large companies increases by $70,000

August 2008

The monthly electric bill will increase, depending on the size of the company, due to the elimination of the first part of the electricity subsidy.

Executive director of the union, Jorge Arriaza, confirmed yesterday that for small and medium businesses in the industrial sector the increase will be between one and eight thousand dollars per month.

Subsidy to companies eliminated in El Salvador

August 2008

Starting today, August 12, the first section of the electric energy subsidy granted to commercial and industrial companies will be eliminated.

This is based on an agreement taken by the commission with representatives from government institutions and private entitities that have to do with this matter.

End of energy grant is agreed in El Salvador

July 2008

The private sector and the Executive agreed to eliminate the grant on electric energy for commercial and industrial users.

The grant will be eliminated in three phases, with the first one on August 12, the second on May 12, 2009, and the last on October 12, 2009. Phase one will take out 40% of the grant, while the next two phases will eliminate 30% each.

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