Energy: Government is not Considering Payment to Generators

After Congress banned electricity distribution companies from disconnecting their services, in Guatemala the payment of energy provided by generators is in danger and the authorities assure that they are not contemplating temporarily financing the costs.

Wednesday, June 3, 2020

In the context of the health and economic crisis generated by covid-19, the deputies of Congress approved and published Decree 15-2020, which prohibits cuts in water, electricity, cable TV, telephone and Internet services during the state of calamity and its possible extensions.

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The companies distributing energy in the country have notified several generating companies that with the provisions of Decree 15-2020, their financial capacity has been seriously limited and that there is a possibility of not paying for all the energy they have provided so far.

Finance Minister Alvaro Gonzalez Ricci told Prensalibre.com that "... they are not considering it because they would have to be on their guard if the Constitutional Court (CC) were to grant one of the protections that would invalidate the decree."

Gonzalez Ricci added that "... Decree 15-2020 'clearly has problems. The solution is to process the one presented by the executive, where consensus was reached with the sectors'. There is no fund to finance the electricity sector, but they could approach the National Mortgage Credit (CHN) or its system bank. It is difficult to determine the amount since there is no certainty that it will happen with decree 15-2020."

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After power outages were banned, Energuate notified generators that there is a possibility of not paying for all the power they have provided so far.

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