End of energy grant is agreed in El Salvador

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

Thursday, July 31, 2008

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. In the first stage, the 40% grant reduction will imply a 22% increase in the cost of the electricity for industrial and commercial companies.

More on this topic

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.”

Electric Rates in El Salvador Increase 14%

February 2009

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."

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.

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