Nicaragua: Production Costs Could Increase

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.

Thursday, September 19, 2019

The last official increase is effective since June 1, 2019, which was 3% in the average selling price to the final consumer in the country, passing the cost per megawatt from $219.8 reported in March to $226.5 since that month.

Increases in the price of electricity paid by companies could be greater, since days ago attacks were reported on oil producing plants in Saudi Arabia, which could put more pressure on the cost of power generation in the coming months.

José Adán Aguerri, president of the Consejo Superior de la Empresa Privada (Cosep), told Elnuevodiario.com.ni that "... Nicaraguans could suffer 'higher increases' in the cost of electricity than those applied so far by the government if the international oil crisis worsens. The oil situation could increase 'pressure' on the cost structure of companies and the wallet of consumers."

Mario Arana Sevilla, president of the American Chamber of Commerce of Nicaragua, said that "... if the price of oil begins to rise as a result of the conflicts in the Middle East, the situation for Nicaraguans could become more complicated.

¿Busca soluciones de inteligencia comercial para su empresa?

Do you need more information about your business sector?

Request more information:









this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423


More on this topic

Electricity: Businessmen Ask for Better Prices

April 2020

In a context of health emergencies and falling oil prices, Nicaraguan businessmen are asking the government to take advantage of market conditions and reduce electricity rates by 15 to 20%.

For the Superior Council of Private Enterprise (Cosep), the advantage of buying and storing oil derivatives for electricity generation as soon as possible should be evaluated, and thus taking advantage of the historical lows in the prices of these products.

Nicaragua: Oil Prices Concerns

January 2019

Although in the last year there have been constant reports of falls in the international price of crude oil, the rise registered in the last month represents a risk for a "very sensitive" economy such as the Nicaraguan one.

Between December 21st, 2018 and January 21st, 2019, the price per barrel of crude oil has registered a 16% increase, rising from $45.5 to $52.57, a situation that could alter prices and costs in an economy that has been hit by the political crisis that has affected it since April last year.

Nicaragua: Call for Lowering of Electricity Rates

January 2015

The productive sector has indicated that the savings generated by the reduction in the price of oil should be applied to energy tariffs.

Although this proposal is gaining strength in the context of falling oil prices, the private sector and had actually raised the idea last year.

Nicaragua: Constitutional Reform Will Affect Business Climate

November 2013

The American Chamber of Commerce of Nicaragua has rejected the amendments to the Constitution proposed by the Nicaraguan government.

This is the result of a survey carried out by AmCham among its members in order to find out its position on the proposal to reform the constitution of Nicaragua.

ok