The Cabinet Council approved the payment of 65 million dollars to subsidize electricity rates during the second half of 2024 in Panama. This initiative is part of the government's efforts to reduce energy costs and ensure a more equitable distribution of lower rates throughout the country.
Of this amount, 42.72 million dollars were allocated to the distribution companies, distributed as follows: 22.32 million for EDEMET, 17.46 million for EDECHI, and 8.74 million for ENSA. The discounts given to customers varied between 20% and 39%. The Rate Stabilization Fund (FET) and the Western Rate Fund (FTO) were responsible for facilitating these subsidies.
Francisco Álvarez, director of investments, concessions, and state risks at the Ministry of Economy and Finance, emphasized that this mechanism aims to stabilize electricity prices through transfers to the distribution companies, which apply the discounts on customers' bills. The FTE and FTO, authorized by Cabinet resolutions, benefited hundreds of thousands of users in the country.
In particular, the subsidy from the FTO benefited about 178,000 EDECHI customers, including those previously served by the Rural Electrification Office (OER). The discounts ranged from 29% to 48%, contributing to greater accessibility to electricity in provinces such as Chiriquí and Bocas del Toro.
