Martinelli Promises Panamanians Will Have The Cheapest Electrical Power In Latin America
Thursday, July 05 2012 @ 12:35 PM EDT
Contributed by: Don Winner
Editor's Comment: There are a lot of new hydro electric projects under construction which have not yet come online. Once they do, then there will be more and cheaper electricity available, and there will be a downward trend in the electricity rates being charged to residents and business owners. The government has also recently taken steps to allow for the construction of new electricity generation plants that burn natural gas instead of bunker fuel - and apparently natural gas is cheaper and more readily available than bunker, so the math works to allow for the generation of cheaper electricity. Also this week Martinelli attended a groundbreaking ceremony for a new wind power project being built. So yeah, Panama is moving to more hydro, gas, and wind - in an effort to get away from the more expensive bunker fired plants - but not all of those efforts are on line yet. Therefore, for the moment the government has stopped paying subsidies that had been keeping electric bills artificially low, so this month everyone is going through some sticker shock. Martinelli's "wait for it" message might not be so well received this month.