The Electricity Market in El Salvador

The risks of a system affected by political interference and regulation uncertainty.

Wednesday, August 19, 2009

Fitch has published a special report on El Salvador's electricity market, its risks and the challenges to be faced by the new government, whose cabinet took office on June 1st.

In the last few years, El Salvador's electricity market has been marked by political interference and regulation uncertainty. This was visible in violations of the legal framework, freezing of rates and granting subsidies, measures that have affected financial performance and increased the risk of companies participating in the sector, in addition to shrinking the country's public finances.

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Regional Electricity Market Regulations

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New investment opportunities open up with the coming into force in November of the regional regulations for the sale and purchase of electrical power.

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El Salvador’s Electricity Sector

September 2009

Fitch Special Report: Industry Risks and Challenges for the New Government.

El Salvador’s electricity sector exposure to government intervention and regulatory uncertainty during recent years has affected the financial performance of the companies in the sector. The impact of government intervention has been somewhat mitigated by recent measures taken by the current administration to eliminate energy

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