Although in recent years the more expensive bunker fule has been less and less used to generate electricity, the energy cost for manufacturers has increased by 44%.
Data from the Wholesale Market Administrator (AMM) shows that the energy generated from renewable resources went from covering 47.3% of demand in 2007 to 60.8% in 2012. Besides this electricity generation with bunker fuel decreased going from 36.4% to 20% in the same period.
The rate of non social energy from the EEGSA has increased by 22% since February, affecting mainly small and medium enterprises.
The increases in prices charged by Empresa Electrica de Guatemala SA (EEGSA) affect around 103,947 users in the Midwest, which accounts for the bulk of industrial production.
Local business resent the loss of competiveness caused by the increases, especially in the manufacturing of food and beverages, textiles and plastics.
Food industry businessmen warned that their production costs will be increased by the upcoming 9.9% hike in energy prices.
Roberto Herrarte, head of Grefal, the union of Food Producers, explained that energy is an important component in their overall cost structure, sometimes as much as 15%.
The textile industry is also a heavy user of energy. It accounts for 70% of the costs of yarn makers, 10% at maquilas and 40% at fabric producers.
One hundred and fifteen textile plants in Guatemala are negotiating to buy electricity directly from power generators.
Buying electricity in direct form for textile companies will allow a significant savings in production costs, thus increasing sector competitiveness with the rest of the world.
According to Prensalibre.com, Deputy Minister of Energy and Mines, Romeo Rodríguez, said that "there are several companies that have direct contracts with generators to buy power in bulk."
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