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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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.

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