Recommendations have been made to change the legal framework for the distribution market, because "in the process of ordering distribution as a natural monopoly, rules were introduced that permit competition."
From a statement issued by the Superintendency of Competition:
The electricity distributor Delsur will be investing $14 million in 2015 in the construction of new substations and the purchase of technical and protective equipment.
In 2014 the distribution of Electricity Delsur invested $13 million in several works to strengthen its electrical system, and this year representatives announced plans to increase the amount to $14 million, to be allocated to the expansion of the electricity network, the modernization of the commercial system which that measures the energy consumption of users, and the acquisition of new technical equipment, among other things.
The transport of electricity between El Salvador and Guatemala through the Electrical Interconnection System for the Countries of Central America is limited to 170 MW.
This is despite the fact that the Electric Interconnection System for Central American Countries (Siepac) has capacity to transmit 300 MW, said Luis Herrera, manager of the Wholesale Market Administrator (AMM) in Guatemala.
The main distributor of electricity in El Salvador is planning extensions to the distribution network, because of a rise in demand.
Laprensagrafica.com reports that "improvements in distribution networks will require an investment of $16.6 million, according to Ricardo Vega, vice president of operations at AES El Salvador. In addition, investment for expansion of the distribution network, which is required for new residential or commercial projects, will total $5.1 million. We also intend to invest in the purchase of new equipment and infrastructure services with $2 million, and improvements to third party lines and social welfare projects with $3.3 million, among other things. "
The purchase of Shell's Salvadoran operations by Honduras' Grupo Terra could become official in March.
Representatives from the Salvadoran fuel distribution industry explained that the only step remaining is the approval of the Competence Superintendence (SC). This entity has until March 9 to comply.
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