1998News

Four years to begin paying for electricity consumed

The president of the Comisión de Reforma de la Empresa Pública, Antonio Isa Conde explained that two categories of clients will be established as part of the privatization of the commercial end of the state electricity utility. The two categories are: 1) residential consumers and small businesses; 2) large high-consuming industries and companies. He said that it will take four years to establish the mechanisms to collect from low-income sectors where the distribution network is very disorganized. There is also a generalized opinion that poor people do not have to pay for electricity consumed. These rates will be regulated by the Superintendency of Electricity. He explained that 80% of the total energy will be destined to the residential sector. The remaining 20% will be used by large industries and companies that will be able to negotiate rates directly with the generator companies.