Guatemala: New Rise in Electricity Rates Applies

From 1 August, EEGSA users will have a 2.3% increase in their tariff compared to the price for the second quarter of the year, and DEOCSA and DEORSA users will have a 0.3% increase in both cases.

Thursday, August 1, 2019

According to what is established in article 87 of the General Electricity Law Regulation, the National Electric Energy Commission (CNEE) is responsible for calculating the quarterly tariff adjustment, based on the difference between initially projected costs and the real costs of energy and power purchases made by distributors during the months of April to June 2019.

The document states that "... In general terms, it is possible to indicate that for the calculation of this quarterly adjustment, the costs of power and energy purchases made by distributors to supply their users were affected by the behavior of certain variables that influenced generation costs, such as:

The drought that has been affecting the hydroelectric production, substituting the same by a greater generation of energy with thermal power stations, resulting in higher production costs. The indicated in the previous paragraph has had incidence in the SPOT price of energy in the Wholesale Market, presenting a 32% year on year increase regarding the costs of the previous year, for the same quarter of costs analyzed. The exchange rate continues to be maintained at values with a significant increase in relation to historical values.

However, despite the effect of the above-mentioned contingencies, it has been possible to mitigate the impacts on the increase in supply costs to a certain extent, given the degree of diversification of the national energy matrix, which includes several renewable and thermal generation technologies, since it allows electricity supply to continue to be guaranteed, within a margin of price stability. For this reason, this Commission highlights the importance of continuing to advance in the diversification of the energy matrix and the development of generation projects with renewable resources, in accordance with Energy Policy 2013-2027 established by the Ministry of Energy and Mines.
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Guatemala: Adjustment in Electricity Rates

May 2020

For the quarter from May to July 2020, EEGSA users will have a -1.9% drop in their tariff compared to the price of the first quarter of the year, and for DEOCSA and DEORSA users the increase will be -0.5% and -0.6%, respectively.

Generally, it is possible to indicate that, for the following quarter, tariffs show a stable scenario with downward variations, derived from the behavior of certain variables that have direct incidence on generation costs, informed the National Commission of Electric Energy (CNEE).

Rising Electricity Rates in Guatemala

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From 1 November, EEGSA users will have a 0.4% increase in their tariff compared to the price for the third quarter of the year, and for DEOCSA and DEORSA users the increase will be 2.2% and 2%, respectively.

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The controversy began after the National Commission of Electric Energy (CNEE) approved the Non-Social Tariff and Social Tariff Sheets for the 2019-2024 period, which stipulate the final prices of electric energy service for users of Distribuidora de Electricidad de Occidente S.A. -DEOCSA- and Distribuidora de Electricidad de Oriente S.A. -DEORSA-. See CNEE newsletter.

Guatemala: Rising Electricity Rates

April 2019

From May 1, EEGSA users will have a 6.2% increase in their tariff with respect to the price of the first quarter of the year, and DEOCSA and DEORSA users will have a 1.5% and 1.8% increase, respectively.

In general terms, it is possible to indicate that for the following quarter the tariffs show variations, resulting from the behavior of certain variables and components that have a direct incidence on the costs of energy purchase, explains a bulletin of the National Commission of Electric Energy (CNEE).

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