Nicaragua: A New Rise in the Electricity Price

Since June 1, there has been a 3% increase in the average selling price to the final consumer in the country, going from the cost per megawatt of $219.8 reported in March to $226.5 from this month.

Wednesday, June 19, 2019

The increase was officialized in La Gaceta on June 18 and the new price per megawatt is applied to each tier that makes up the tariff sheet, which includes residential, commercial, industrial and irrigation tariffs. See publication in La Gaceta. reviews that "... The Nicaraguan Energy Institute (INE) this month applied another increase in the residential electricity rate of 1.43 percent, with this new increase the adjustment accumulated since December last year would approach 10 percent for the household rate, according to official figures.

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The article adds that "... The president of the Chamber of Energy, Cesar Zamora in an interview with La Prensa in recent weeks admitted that the government this year was adjusting the electricity tariff to address the increase in commercial losses that is suffering the distributor Disnorte Dissur, because it is having problems collecting the bill."

In the country, the price of electricity began to increase in 2019, since in January it was reported that a new price sheet that came into force in the first month of the year established that consumers with residential, commercial or industrial tariffs would pay at that time 3.28% more than at the end of 2018.

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More on this topic

Nicaragua: Low Electricity Rates Announced

June 2020

The authorities announced that a 3% reduction in the price of electricity will be applied as from July 1st, a reduction that would be not enough in the current context of tariff increases.

The Government informs that as of July 1st of this year 2020, Nicaraguan families will enjoy a 3% reduction in electricity rates, which in addition to benefiting the users of the energy service, contributes to guarantee the technical and economic stability of the Electricity Sector, says an official statement.

Nicaragua: Electricity Price Up 3%

January 2019

The new price sheet that has been in force since January establishes that consumers with residential, commercial or industrial tariffs will pay 3.28% more than in 2018.

Arguing that generation and distribution prices increased because of the "behavior of fuel prices," along with inflation reported by the local economy, the Nicaraguan Energy Institute (INE) decided to increase the electricity price.

Nicaragua: Electricity Rate Increases by 7.78%

April 2013

The increase applies to the large consumer sector, which comprises of industrial and residential users consuming more than 150 kV hour a month.

Nicaraguan businesses are warning about a loss of competitiveness caused by this rate increase, as it will be very difficult to pass on to consumers.

Energy Costs in Nicaragua

November 2011

The Nicaraguan government is studying the establishment of new fees that include an increase in generation costs and the amount of subsidies to be applied.

The high price of oil and other factors have increased the average cost of electricity generation in Nicaragua by 51%, of which only 7% has been passed on to the consumer with the remaining 44% being assumed by grants implemented by the government using ALBA funds.

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