Electricity subsidy at risk in El Salvador

Electricity companies announced that there will be an increase in energy rates if Cel does not fulfill its commitment to subsidize consumption.

Thursday, November 6, 2008

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.

The Secretary said that at the moment, the Commission is making an internal effort to use its own funds and that, at the same time, negotiations to obtain $60 million in financing from the BCIE continue.

More on this topic

El Salvador: $42 million for Energy Subsidies

February 2012

The Executive Hydroelectric Commission of the Lempa River (CEL) will transfer this amount to finance subsidies for electric energy consumers using up to 200 kW.

The committee informed the Legislative Assembly of this in a letter sent recently. The disbursement will be made in the first three months of the year.

El Salvador Analyzes Electricity Subsidy Reduction

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.”

Panama: $35.8 million in Energy Subsidy

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.

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.

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