According to ASI, the energy issue is of vital importance for the industrial sector in view that electricity is one of the highest costs of any industry.
We cannot be competitive in a country where electricity is expensive for industries which compete with other sectors where countries subsidize their energy and therefore production costs are lower.
With the growing demand for energy it has become a priority to ensure supply of electricity at competitive prices," said ASI president, Javier Siman.
In this sense, it becomes urgent to complete construction of hydroelectric dam Chaparral and to develop projects in order to upgrade the Cerrón Grande dam, as well as investment in development of new technologies and renewable energy sources like solar energy, among others.
Simultaneously, the regulatory framework should be reviewed for concessions to build and operate new hydroelectric or geothermal projects, private or public-private, supplying energy at competitive prices.
Different agents in the Nicaraguan economy have expressed their complaints and concerns over the impact that the increase decreed by the government will have.
Commenting on the rate increase, unprecedented in the country's history, the economist Cirilo Otero said that its impact will be felt in the economy, "This increase of 41.8% will be passed on to the end consumer and cause a chain reaction, because when consumers can not purchase goods and services, companies will go bankrupt. "
With the elimination of the subsidy, starting May, the electric bill for the private sector will increase 14%.
Irene Brave in her article in Laprensagrafica.com writes: "The government negotiated the elimination of the subsidy for the private sector last year, and the National Association of Private Enterprises (ANEP) proposed to do it in a gradual manner to avoid an abrupt impact on the costs of business and, therefore, in the prices of products. Thus, it was determined to eliminate 40% of the subsidy in August of 2008. A second phase of the implementation will be carried out next May 12th, with an adjustment of 30%, and, finally, on October 12th, 2009, the remainder 30% of the subsidy will be removed."
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