Energy: Opposition to Regional Treaties

Arguing that there is a risk that energy transactions in the region will become more expensive, Guatemalan businessmen are asking the outgoing government to refrain from approving or signing reforms to the Central American Electricity Market Framework Treaty.

Wednesday, January 8, 2020

Because on January 10 the discussion is programmed within the Director Council of the Regional Electric Market of Central America (CDMER), the subscription of the Third Protocol, which would reform the Framework Treaty of the Electric Market, the private sector of Guatemala has issued an alarm before any change in the regulations, since it could cause increases in the prices of energy transactions or generate negative effects in the Guatemalan market and its interconnection with Mexico.

You may be interested in "Electric Generators: Market Figures up to 2018"

The unions that have spoken out against the outgoing authorities signing the amendments are the National Association of Generators (ANG), the Association of Generators with Renewable Energy (Ager), the Association of Independent Co-Generators (ACI), which includes the sugar mills, and the Associated Energy Industry (IEA).

Horacio Fernández, executive director of ANG, told Prensalibre.com that "... The last draft of the document we had access to was two years ago 'and we don't know what the final version is'. It still needs to go through a process, but the authorities need to make known what they are committing to Guatemala."

Also see "Regional Conflict in Energy Trading"

The article reviews "... Unofficially it is known that one of the modifications would be that the MER would manage or pretend to regulate the bilateral interconnections that countries like Guatemala have with Mexico, and Panama with Colombia, aspect that they would not agree with because it would continue limiting Guatemala's exports and violating sovereign decisions since those countries have bilateral agreements with their neighbors."

According to official figures, during 2018 Guatemala registered electrical energy exports for $181 million, 76% more than reported in 2017, and its main buyers were El Salvador, Honduras and Mexico.

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