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No Increase in Electricity Rates Due to Low Fuel Costs

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No Increase in Electricity Rates due to Low Fuel Costs


The clients of the electricity distribution companies will have no increase in the rate of energy during the second half of this year which starts on Friday 1 July, due to the fall in the price of oil.

"All clients will keep the same rate and those who consume up to 300 kilowatt hours per month will continue with the subsidy", explained the administrator of the National Public Services Authority (ASEP), Roberto Meana.

Oil prices from Texas exceeded the $48 per barrel yesterday, when investors took advantage of a fall of two days of crude oil after the vote in the UK in that the british opted to leave the Union.

Last January the oil registered the lowest price of the past few years, the trading to 33.15 dollars a barrel. During the following months the raw material has had a fluctuation upwards until you reach the 50 dollars a barrel.

The fall of oil benefit all clients, because they will not be increased in the electricity tariff, but also the State, because it should not give money to the subsidy that is maintained to the customers that consume up to 300 kilowatt hours per month (kwhm).

In addition, means more savings in the economy staff of those that have a car, because it represents a decrease in the cost of fuel.

Meana recalled that the base that has been maintained for the subsidy are those customers that consume up to 300 kilowatt hours per month, set amount since it was created the Tariff Stabilization Fund (FET) in 2004.

The customers of the distribution companies receive a credit of variation of fuel by the fall in the price of oil.

"By not having to pay subsidies to those that existed before, this fund is for the State to be able to make investments of a social nature", added Meana.

Electricity rates for the first half of 2016 showed a low that benefited a million 21 thousand 237 customers of electrical energy that were recorded at the national level.

In accordance with what was announced by ASEP, at that time, the 78.1 per cent of total residential customers who consume up to 350 kilowatt hours per month, i.e. 796 thousand 417 customers, maintained the contribution of the State through the FET.

For the rest of the clients (residential, commercial and industrial) of the electric distribution company Metro West S.A. (Edemet) and Elektra Noreste, S.A. (ENSA), which recorded a higher consumption to 350 kwhm, the electricity tariff registered a drop of between 4% and 18%.

Of the 1 million 21 thousand 237 customers across the country, 464 thousand 140 customers correspond to Edemet, i.e. a 45.4%; ENSA account with 421 thousand 491, which represents the 41.3%; while Edechi sum 135 thousand 607, for a 13.3%.

A client that consumes up to 300 kwhm pay approximately between 1157 dollars per 100 kwhm up to 42 dollars per 300 kwhm in its billing. This customer is one that has a small refrigerator, washing machine, fans, small tv and iron.

In the next rank is located the customers that consume between 301 and 700 kwhm and pay between 66 and $116, respectively. In addition to refrigerator, washing machine, fans, TV and iron, these customers have air conditioners, dryer, videogames and computers.

The authorities insist on the need for customers to keep saving practices of energy to reduce the pressure on the electrical system.

Tarifa eléctrica se mantiene


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Falling oil price saves electricity increase

Posted on June 29, 2016 in Panama

Post Views: 145

THE FALL IN  oil prices means that there will be no increase in the price of electricity  in Panamain the second half of the year.

“All customers will keep the same rate and those who consume up to 300 kilowatt hours per month will continue with a subsidy,” said the administrator of the National Authority of Public Services (ASEP), Roberto Meana on Wednesday June 29.

The price of oil topped $48 a barrel on Tuesday  as investors took advantage of a two-day drop in price after the vote in the United Kingdom to leave the European Union.

In January, the price of oil recorded its lowest price in recent years, trading at $33.15 a barrel. During the following months the raw material has fluctuated upward, reaching $50 a barrel.

The drop in oil prices benefits all customers, because they will not increase in the electricity tariff, but also to the state, as the cost of its subsidies also drops.


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  • 2 weeks later...

I wonder if this might have an impact on our electricity rates?



Electricity subsidies plummet over $150 million

Posted on July 11, 2016 in Panama

Post Views: 100

STATE ELECTRICITY subsidies  in Panama  have fallen by over $150 million since 2014.

The amount paid by decreased from $400 million in 2014 to an estimated $46 million this year.

The government, in the first half of this year, spent $23 million in subsidies.

The decrease is due to two main factors, a decrease in fuel prices, which have resulted in lower electricity costs, and a review of the formula used to determine how much the state pays in the subsidies reports La Prensa

That review led to the state increasing subsidies for users of less than 300 kilowatts hours (kwh) per month, with the idea being that low-income families used less electricity.

The subsidy was created in 2004 to help people deal with the impact of rising electric costs. It initially covered users of up to 55 kilowatts per month, but in 2012 that amount started to be moved to current levels.


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Panama: Financing for Electricity Distribution

The Electricity Transmission Company is preparing to make two issues of $350 million and $500 million on the New York Stock Exchange in order to finance the fourth transmission line and carry out improvement works on existing lines.

Monday, July 11, 2016

Authorities at the Electricity Transmission Company of Panama (Etesa) have hired Scotiabank to structure the emissions to be made on the New York Stock Exchange. The funds raised will be used to build a fourth transmission line, whose tender will be announced in early 2017.

See: "Panama: Fourth Transmission Line Could Cost $480 million"

Ivan Barria, general manager of Etesa told Capital.com.pa that "... besides the construction of two transmission lines they will be re powering existing lines to increase energy transport capacity, added to this is the construction of several transmission rings that will help provide redundancy to the transmission system and increase transportation capacity to 6,000 megawatts (MW) by the year 2019. "

"... Barria said that having a modern and efficient energy transmission and distribution system will not only improve the internal power supply but transform Panama into the main energy hub in the region, facilitating the exchange of energy between North, Central and South America."


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  • 4 months later...
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Panama: 17 Offers in Energy Tender

The companies submitted bids for generation with hydro, thermal and photovoltaic sources in the tender for the supply of firm power and energy for 4 years.

Friday, November 18, 2016

"... The generation companies include those using hydroelectricity, and thermal generators using bunker fuels, but there was also a proposal that will generate energy with methane gas and one with photovoltaics."

Among the bidding companies are Pan-am Generating Company, Pedregal Power Company, Bahia Las Minas Corp., Generadora del Atlantico and Enel Green Power, among others.

The energy and power that will be contracted out will cover the requirements for the distribution companies Edemet, Edechi and ENSA in 2017, 2018, 2019 and 2020. 

Prensa.com reports that "...Since 2014, every year contracts have been awarded to cover the energy needs of more than one million customers served by these distribution companies."


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