Distribuidora del Sur will hand over its concession area to Distribuidora del Norte in order to centralize operations and stabilize its finances.
This was announced by the power distributor Melfosur TSK through an advertisement in a newspaper in Nicaragua. " The notice , signed by Antonio Palomares Hernandez in his role as legal representative of the two distributors, says only that Distribuidora del Sur ( Dissur ) has renounced its concession and transferred it to Distribuidora del Norte ( Disnorte ) ", reported Laprensa.com.ni.
The Spanish company has signed the sale agreement for $57.8 million in shares in the electricity distributors Disnorte and Dissur, to the Nicaraguan company Melfosur TSK-International.
From a statement by Gas Natural Fenosa:
Gas Natural Fenosa has sold its interests in electricity distribution companies in Nicaragua
The sale agreement includes holdings in the Nicaraguan companies Disnorte and Dissur for $57.8 million.
While presidential advisor Bayardo Arce announced that the Spanish company has already sold its shares in the distributor Disnorte-Dissur, an industry spokesman has denied it.
Bayardo Arce Castano, economic adviser to the president of Nicaragua, announced yesterday that Gas Natural Fenosa had closed the sale of an 84% stake in Disnorte-Dissur-the remaining 16% belonging to the Nicaraguan state-without disclosing the buyer or the figures in the agreement.
An announcement has been made that the Nicaraguan subsidiary of Gas Natural Fenosa will probably sell its shares in the electricity distributors Dissnorte and Dissur.
Three companies are interested in marketing power in Nicaragua, and if an agreement is reached, the energy companies Disnorte-Dissur will have new owners.
According to the Energy Minister Emilio Rappaccioli among the companies interested are AEI, one of the largest generators in Nicaragua and the English company, ACTIS, owner of Aeolus in Nicaragua.
Regulators approved energy contracts signed between Blue Power and Disnorte-Dissur.
The 20 year contracts set the price of a megawatt produced initially at $ 104.5.
"David Castillo, President of the Board of the INE, recently confirmed that the evaluations of the contracts with all the required information supplied by the company were approved and ratified ...
Gas Natural Fenosa entered into a letter of intent with Ram Power Corp to Purchase 157MW from future geothermal power plant “Casita”.
Ram Power, Corp. has entered into a Letter of Intent (the "LOI") with Disnorte-Dissur, a Gas Natural Fenosa company to negotiate a Power Purchase Agreement for energy that will be produced by a new geothermal power plant under development in Nicaragua.
Droughts have increased the power grid's dependence on energy generated by oil derivatives.
Another factor pushing up the cost of electricity are recent increases in the prices of both bunker fuel and diesel.
Cosep, the Private Enterprises Council, is worried by these increases in energy prices, which directly affect production costs at companies.
Laprensa.com.ni published: "According to energy distribution companies Disnorte and Dissur, they paid $220 million to energy generators between January and August 2009. This figure could be higher from September onwards, as oil dependence increases in the energy sector... Currently, 81% of the country's energy generation is based on burning fuel".