Performance of Electricity Distribution in Panama

A rate of 9.66% has been established as the rate of return to be used for the calculation of the Maximum Allowable Income for distribution and power trading companies for the period July 2014 - June 2018.

Wednesday, June 18, 2014

From resolution AN No. 7474-Elec National Authority of Public Services Panama:

Considering:

... It has to be kept in mind that the business of electricity distribution in Panama is developed under conditions of political and economic stability, low inflation and without exchange rate risk as well as a market with captive customers and a fairly predictable, expansion reaffirming that the rate established is adequate;

... That the rate of return on the low end, that is to say nine point sixty-six percent (9.66%) is above the rate of return currently available on the market, so it meets the reasonableness required under the Act. This rate allows for remuneration of shareholders' equity as a company similar to remuneration from a company in a sector with comparable risk, as well as the use of technologies and management systems to ensure the best quality, continuity and security for its customers.

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