Energy in Guatemala: Payment to Generators at Risk

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.

Wednesday, May 27, 2020

Weeks ago, 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, and which came into effect following the outbreak of covid-19 in the country.

See "Guatemala: Suspension of Basic Services"

In this scenario, Energuate, a company that distributes electricity in the country, notified 40 generators that due to the application of Decree 15-2020, their financial capacity has been seriously limited, reported the National Association of Generators (ANG).

Horacio Fernandez, ANG's executive director, told Prensalibre.com that "... the distribution company is giving notice that, as a result of Decree 15-2020, there is a possibility that they will default on payments to the generators for the supply of electricity".

Also see "Basic Services: Controversy in Guatemala"

According to the power generators, Empresa Eléctrica de Guatemala, S.A. (EEGSA) also made a similar notification on 11 May.

The article adds that "... At least nine actions of unconstitutionality have been filed against decree 15-2020 in the Constitutional Court (CC), among them by ANG, the Chamber of Industry of Guatemala (CIG), Deocsa, Deorsa, and others. On Monday, the EEGSA presented its unconstitutionality."

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More on this topic

Energy: Government is not Considering Payment to Generators

June 2020

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.

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.

Guatemala: Preparations for Tender of 420 MW

January 2017

The electricity distributors Eegsa and Energuate are preparing documents for a tender in the coming months of a supply of 420 MW for a period of 15 years.

Eegsa representatives explained that in one procedure 380 MW will be tendered, in which offers will be accepted with any energy source, but there will be a requirement that generators have at least one year of existence or being constituted.

Guatemala: 15 Bids to Supply 210 MW

March 2015

Fifteen companies submitted their technical and financial proposals for Tender 1-2015 convened by the energy distribution companies.

From a statement issued by Empresa Electrica de Guatemala SA (EEGSA):

In response to the demand for electricity by Guatemalans, the ENERGUATE and distributors EEGSA received technical and financial bids from generators participating in the Short Term Tender 1-2015 which will provide 210 MW for the period of one calendar year, starting on May 1, 2015.

Difficulties in Power Generation in Guatemala

October 2013

More than 45 power plants which are being built with an investment of more than $1.1 million face social, technical and financing problems.

Prensalibre.com reports: "The works are part of the tenders in the Generation Expansion Plan made in 2010 and 2012 for long-term contracts, which seek to ensure the supply of energy for Empresa Eléctrica de Guatemala (EEGSA) and Energuate ... ".

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