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.
According to the agreement, the second section of the subsidy will expire on May 12, 2009 and the third on 12 October next year, although these are not final dates.
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.
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."
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.
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