More Expensive Energy, Less Investment

Honduran businessmen agree that the constant increases in electricity rates are making the country less attractive for investment.

Tuesday, January 7, 2020

The Honduran Electricity Regulatory Commission (Cree) announced a few days ago that by the beginning of 2020 there will be an average increase of 2.9% in the price of electricity.

You may be interested in "Energy Supply: Concerns in Honduras"

According to Jimmy Daccarett, director of the National Association of Industrialists (Andi), "... the increase is not 2.9%, because for the high voltage service it is 5.04% and 3.80% for consumer media such as micro-entrepreneurs and residential part of the middle class."

Rafael Medina, executive director of the Chamber of Commerce and Industry of Tegucigalpa (CCIT), explained to Laprensa.hn that "... 2019 was a year of economic slowdown due to several factors such as the cost of electricity. You can't plan investments if you raise rates every quarter."

Rising energy costs have been a concern for businesspeople for months, since the closure of Unilever's bar soap production plant at the end of November 2019. Medina said that the cost of electricity, tax pressure and the high cost of productivity should be reviewed.

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In the country, the business sector expects an increase in operating costs in the coming months, as a result of the expected increase in the price of electricity in the short term.

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Salvadoran Textile Factories Adjust Costs

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With the increase in the electricity bill, businesses are looking to cut costs to avoid raising prices.

The president of the Textile Industry, Clothing and Free Trade Zones Chamber in El Salvado (Camtex), José Tobar, explained in an Elmundo.com.sv article that adding the energy increase to prices would mean a loss of competitiveness for the Salvadoran sector when compared to other countries.

Salvadoran Entrepreneurs Criticize Withdrawal of Electricity Subsidy

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