Guatemalan Energy Rates Hike Hangs in The Balance

An increase in energy prices, effective since May 1st, was nullified by a court ruling.

Wednesday, May 12, 2010

The Second Civil Court, head by judge Norma Eugenia Fratti, ruled in favor of two “recursos de amparo” (appeals for legal protection on grounds of violation of rights and liberties), introduced by Human Rights Defender Sergio Morales.

The rates used in the previous quarter (February-April 2010) will be in effect until this legal process is settled, stated the resolution.

The appeals were introduced on the grounds that the rate increase will drive up the price of the consumer basket.

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Guatemalan Court Nullifies Electricity Rate Hike

June 2010

An increase in electricity rates, in effect since May 1st, was disallowed by a civil court.

The resolution by the 9th Court of the Civil Instance implies that rates must be reduced to their November-December-January levels. Additionally, users must be refunded for the additional charges.

Guatemala Extends Energy Subsidy

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The government of Guatemala will invest $14.52 million to lower the energy bill of those users consuming more than 300 kilowatts.

This way, the existing energy subsidy is extended to those users not included in the social rate (less than 200 kilowatts).

Local newspaper Elperiodico.com.gt reported that the money will be wired to the country’s energy companies, in order to absorb a recent increase in the price of energy.

Guatemala: Energy Distributors Increase Rates

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Some 157.000 clients of Municipal Electric Companies (EEM), will see their electricity bills increased by between 40% and 60%.

This hike is a result of higher prices charged by INDE, the National Electrification Institute. The price of an energy contract after May 1st is 85% more expensive than current contracts.

Cost of Electricity Could Double

May 2009

A Guatemalan court held that EEGSA electricity company was right in its claim, which would raise the cost of a kilowatt from $0.16 to $0.25.

If this ruling is confirmed in superior courts, the increased cost of production would be inaccessible for many businesses.

Carlos Colom Bickford, president of the CNEE, told Elperiodico.com.gt: "We are extremely surprised and troubled by the decision in favor of EEGSA, but we filed an appeal before the Constitutional Court to correct the resolution."

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