Panama expands COVID-19 power sector measures

Panama’s public services regulator Asep has issued additional transitory measures for power sector stakeholders amid the coronavirus crisis.

One measure calls on distributors not to cut service from March 1 through June 30 for non-payment under certain conditions, such as family income under US$2,000/month, employment suspension and in the case of retirees and pensioners.

Distributors also must implement necessary mechanisms for paying the outstanding balance, according to the resolution, available here.

Another measure requires the timely payment by distributors of obligations with the wholesale power market and transmission service and grid use charges.

This second resolution, available at this link, allows distributors to reduce payments because of lower cashflow stemming from the payment moratorium decreed by the government on May 4.

BNamericas recently reported that Naturgy, which controls two of Panama’s three distributors, looks to secure IDB Invest funds to cover deferred customer payments.

Read Liquidity shortfall hits additional Central American power utilities

On May 13, the government began a gradual plan to reopen the economy starting with e-commerce, vehicle workshops, technical services such as plumbers and electricians, and artisan fishing and industrial aquaculture.

A second phase began on June 1. It includes priority public infrastructure construction, non-metallic mining, industry, and the reopening of public spaces such as parks and churches.

The country’s flagship airline Copa plans to resume limited service on June 26.

Photo credit: Etesa