POWER

Electricity prices to drop

06-30-2009 | MARIJULIA PUJOL LLOYD

mpujolstar@la

Panama Star PANAMA. The price of electricity will fall between three and four percent from Wednesday July 1 says the National Authority of Public Services.

It is expected that the reduction will be of half a cent per kWh consumed, according to the net average tariff adjustment for the second semester of 2009.

The reduction in the cost of energy was establish, after the government decided to acquire an insurance to cover expenses in the fuel variation clause, that is valid until December 2009.

The partial subsidy will only benefit those clients that use less than 500 KWh per year.

However, to cover the constant increment of the the oil prices at international level, the government set aside a fund of $40.7 million that will be destined to stop the increase of electricity rates. Figures presented by the local authorities showed that 90 per of customers will have lower electricity bills.

The president of the Energy Secretariat, Dani Kuzniecky said that although the oil derivatives are increasing, they will not affect the cost of the electricity in the country for the next six months.

The Ricardo Martinelli administration will have to decide which measures is going to take to keep the prices down