Global Courant
According to the Ministry of Energy and Mines (MEM), 447,500 customers of electricity distributors who consume between 89 and 125 kilowatts/hour per month (kWh), equivalent to 2.5 million people, will be left without a subsidy to the rate from July 1, so each month they will have to pay around Q100 more.
In other words, 126 thousand users of the Electric Company of Guatemala. SA (EEGSA), will pay Q1.38 per kWh in July (Q0.38 more, which represents 38%), taking into account the current rates for the quarter from May to July.
While in the Energuate distributors, for the users of the Distribuidora de Energía Eléctrica de Occidente (Deocsa) the full social rate that users must pay as of July 1 is Q2.20 per kWh, that is, Q1.20 more (120%).
And the clients of the Distribuidora de Energía Eléctrica de Oriente (Deorsa), in that range of consumption, what they must pay will go from Q1, which is currently applied with a subsidy, to Q2.10 without this temporary contribution. With this, the increase will be Q1.10 per kWh, that is, 110%.
“The suspension of this support represents a significant increase in the bill that 237,000 Guatemalan households will receive” served by these distributors who have been covered with the benefit of paying less for electricity consumption, said Energuate, adding that the subsidy represents , for these households, a saving close to Q100 per month.
“During the time that it has been in force, these resources could have been used to cover other types of needs, as a result of the effects of the pandemic on the economy,” Energuate responded, stating that customers who consume between 89 and 125 kilowatt hours per month They are families that have an average economic income, living in rural areas, with limited access to health and education.
“It must be taken into account that the consumer’s invoice also charges 12% of the value added tax (VAT) and the public lighting rate, which is different in each municipality.”
There are also users in these consumption ranges in municipal electric companies that operate in the country (such as Ixcán, Joyabaj and Retalhuleu, among others), which would correspond to another 83 thousand users.
Subsidy continues for lower consumption
With the expanded subsidy scheme, 75% of the distributors’ electricity users have received support, according to the MEM.
Now that it ends for those in the range of 89 to 125 kWh per month, it will remain in force for the 62% of households that are users with consumption of 1 to 88 kilowatt hours per month according to the MEM.
For them, the subsidy will continue with the Social Rate Contribution scheme, which is applied as follows:
Those who consume from 1 to 60 kWh will continue to pay Q0.50 per kWh. And those from 61 to 88 kWh are applied in such a way that they will continue to pay only Q0.92 per kWh.
How much has been paid?
In 2020, the first year of the pandemic, the global amount of the subsidy reached Q1 thousand 159.3 million, of which Q529.3 million were resources from the National Institute of Electrification (Inde) and Q630 million, from the national budget. 10.7 million people benefited.
In 2021, the extraordinary measures of the pandemic had ceased, but support continued to be provided, according to Pimentel. The coverage was Q837 million, Q477.2 million from Inde and Q359.8 million from the government, covering 8.6 million people. In 2022, Q987.8 million were spent: Q470.9 million from Inde and Q516.9 million from the central budget. 10.6 million people were covered.
In that year there was also a complicated situation, derived from the war between Russia and Ukraine because it caused a general increase in prices, especially energy products, an aspect that also translated into an increase in the costs of electricity generation, he said. the minister. For this reason, the coverage of the subsidy was extended to 125 kWh, from the second semester.
This coverage was maintained during the first six months of this year, so as of June 21, the MEM reports that a global subsidy amount of Q456.3 million had been paid, of which Q137.9 million are contributions from Inde and Q318.3 million, from the budget, reaching 9.5 million people.
In Congress there is a bill presented by several deputies to continue coverage up to 125 kWh, for three more months, but it has not been approved. Given this, Pimentel said that if the measure loses its validity and the expansion initiative is not approved before July 1, the legal support will be lost because it proposes extending a current measure that would no longer exist after June 30.
quarterly adjustment
Last week, the Minister of Energy and Mines, Alberto Pimentel, said that the hydroelectric generation basins are at minimum levels and adequate measures are being taken to ensure the supply with fossil fuels, while Inde has reserved water in Chixoy to serve the demand.
However, the official said that the rate could be increased, which will take effect on August 1, due to the quarterly adjustment that corresponds from August to October.
To calculate this rate, set by the National Electric Power Commission (CNEE), the costs of power generation from May to July are taken into account. And, according to the minister, the price of the bunker has already begun to rise because due to the little water in the region to generate with hydroelectric plants, more demand began for this fuel, which is used both in industry and in power generation. .
This “will most likely result in an increase in the rate starting in August, which is when the new specifications are due,” Pimentel commented last week.
