Nicaragua: Reduction in Electricity Rates Approved

The National Assembly has approved a bill which reduces electricity rates for consumers using more than 150 KW, using the savings generated by low oil prices.

Thursday, March 26, 2015

From a statement issued by the National Assembly of Nicaragua:

The plenary of the National Assembly
passed in extraordinary session, with 63 votes in favor and 23 against, a bill on Variation of Consumer Electricity Rates establishing a reduction in the energy tariff, using the savings arising from lower oil prices worldwide.

Congressman Wálmaro Gutierrez member of the Sandinista Caucus and chairman of the Committee on Production, Economy and Budget, said the main objective of this benefit is to ensure that the 35 percent of this savings of resources is allocated to consumers who use more than 150 kilowatt hours a month, another 35 is for a fund administered by the Ministry of Finance in terms of combating poverty and 30 percent for the payment of the total debt of the energy sector. The deputy Jenny Martinez of the Sandinista Caucus and President of the Committee on Infrastructure and Public Services, explained that the legal rule empowers consumers with less than 150 kilowatt hours a month, since Article 3 establishes freezing the budgeted amount of subsidy when the law comes into force, currently these users have a frozen energy rate, which they may lose money with this law, depending on the real price of oil.

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